Online Payment Methods: A Comprehensive Guide

In a world where convenience drives consumer decisions, the payment experience is more than just a transaction. It's a critical moment of the shopping journey that can make or break customer relationships. The goal is to make it as simple and fast as possible to make a purchase — and that all comes down to offering the right online payment methods.

However, not all payment methods work the same way. Depending on your customer base, the types of products and services you offer, and even your business location, methods vary and each has its own unique benefits. Here’s everything you need to know.

What you’ll learn:

• What are online payment methods?
• Eight Top online payment methods
• Why should businesses offer multiple online payment methods?
• Most preferred payment methods
• How to choose the right online payment methods for your business
• Steps for implementing new online payment methods
• Prioritize a customer-first checkout with online payment methods
• FAQs

Online payment methods are digital ways for businesses to accept payments for goods and services. Instead of cash or checks, customers use credit cards, digital wallets , bank transfers, and other electronic options to complete transactions. When it comes to online shopping, credit cards reign supreme, accounting for a whopping 70% of online purchases in the U.S.

Online payment methods prioritize convenience, security, and accessibility‌, which makes it easier for businesses to sell across borders, reduce fraud, and improve the buying experience. As ecommerce and digital services grow, offering various payment options is key to keeping customers happy and boosting conversions.

Online payment solutions offer various features to suit different needs — from quick mobile transactions to secure international payments. Choosing the right mix depends on factors like customer preferences, security needs, and transaction fees. Let’s break down eight widely used payment forms, their advantages, and when to offer them.

Credit and debit cards are the most common online payment methods worldwide. Customers trust them for their security, fraud protection, and efficiency, while you benefit from global acceptance and fast transaction processing. Customers simply enter their card details at checkout, and the information is sent through a payment gateway. The issuing bank verifies the transaction, and funds are approved instantly or declined based on available balance and security checks.

Why you should offer it:

• Trusted by customers: Nearly everyone with a bank account has a debit or credit card.
• Supports international transactions: Accepted by major ecommerce websites and platforms worldwide.
• Fraud protection and chargebacks: Banks and payment networks provide dispute resolution.

Best use cases:

• Ecommerce websites selling to a broad audience
• Subscription services that require recurring billing
• Service-based businesses needing a reliable payment option

The use of digital wallets is on the rise, with transactions soaring 62% year-over-year. Digital wallets like PayPal, Apple Pay, and Google Pay allow customers to store payment details securely and check out quickly, without ever manually entering their card information. Customers simply link their credit and debit cards or bank accounts to a digital wallet. When it comes time to make a purchase, all they need to do is select their wallet as the payment method, and funds are transferred instantly without manually entering card details.

Why you should consider offering it:

• Faster checkout: Reduces friction and speeds up transactions.
• Enhanced security: Tokenization replaces sensitive card data with encrypted codes.
• Mobile-friendly: Many customers prefer using wallets for smartphone purchases.

Best use cases:

• Mobile-first businesses and apps
• Online retailers looking to reduce cart abandonment
• Businesses catering to younger, digital-savvy shoppers

Bank transfers are direct account-to-account transactions, often used for high-value purchases and B2B ecommerce payments. With this payment method, customers manually transfer funds from their bank account to your business account. This can be done through online banking, wire transfers, or automated clearing house (ACH) payments.

Why you should consider offering it:

• Lower transaction fees: Avoids credit card processing costs.
• Reliable for large transactions: Often used for B2B commerce and enterprise purchases.
• Preferred in certain markets: Some customers prefer bank transfers over card payments.

Best use cases:

• Businesses handling large transactions, such as wholesale suppliers
• Service providers requiring deposits or milestone-based payments
• International businesses selling in regions where bank transfers are more common than cards

BNPL providers like Klarna, Afterpay, and Affirm allow customers to split purchases into smaller installments. This is often interest-free and makes higher price point items and larger purchases more accessible, which can increase your average order value. When customers select BNPL at checkout, they agree to a specific payment schedule. The BNPL provider pays you upfront, while the customer repays the amount over time.

Why you should consider offering it:

• Increases average order value (AOV): Customers are more likely to make larger purchases.
• Appeals to younger shoppers: Many prefer BNPL over traditional credit cards.
• Reduces cart abandonment: Flexible payment options encourage conversions.

Best use cases:

• Retailers selling high-ticket items, such as electronics or furniture
• Fashion and beauty brands catering to younger consumers
• Ecommerce businesses looking to offer flexible payment options

Cryptocurrency payments like Bitcoin and Ethereum offer an alternative to traditional financial systems, with lower fees and no reliance on banks. Customers transfer cryptocurrency from their digital wallet to your crypto wallet. The payment is verified on the blockchain before the transaction is confirmed. Since this is still a new technology in its early stages of adoption, the regulations for crypto change often, so we recommend seeking legal advice if you plan to offer it.

Why you should consider offering it:

• Lower transaction costs: No intermediaries, which reduces fees.
• Global reach: No currency conversion needed for international transactions.
• Security and privacy: Transactions are decentralized and encrypted.

Best use cases:

• Tech-focused companies and startups
• International companies looking to reduce currency exchange fees
• Businesses targeting privacy-conscious or crypto-savvy customers

Prepaid cards work like debit cards but aren’t linked to a bank account, making them useful for controlled spending and customers without credit access. Customers load funds onto a prepaid card, which they can then use for online purchases. Once the balance is depleted, they must reload the card to continue using it.

Why you should consider offering it:

• Accessible to unbanked customers: Provides a payment option for those without traditional bank accounts.
• Fraud prevention: Limits exposure to financial data breaches.
• Budget control: Customers can only spend what they load onto the card.

Best use cases:

• Businesses accepting gift cards or prepaid Visa/Mastercard payments
• Subscription services allowing customers to prepay for a set period
• Gaming and entertainment companies targeting younger users

Apps like Venmo, Cash App, and WeChat Pay make it easy to send and receive money instantly, often with built-in social features. Customers link a bank account or card to a mobile payment app. At checkout, they can either scan a QR code or send money through the app to complete a transaction instantly.

Why you should consider offering it:

• Popular among younger consumers: Many prefer mobile wallets over traditional banking.
• Seamless transactions: Eliminates manual card entry.
• Dominant in certain regions: Asia and other mobile-first markets heavily use these apps.

Best use cases:

• Restaurants, cafés, and service businesses
• Ecommerce sites catering to mobile-first shoppers
• Businesses in countries where mobile payments are the norm

Autopay allows you to charge customers automatically on a set schedule, making it ideal for subscriptions, memberships, and utility payments. Customers enter their payment details once, and the system automatically processes payments at the scheduled intervals.

Why you should consider offering it:

• Reduces missed payments: Ensures timely billing without manual intervention.
• Improves customer retention: Eliminates friction in ongoing transactions.
• Creates predictable revenue: Helps you plan financially.

Best use cases:

• Subscription-based businesses like streaming services
• Membership programs such as gyms or SaaS products
• Utilities and recurring service providers

Offering diverse payment options is crucial for online retailers in the U.S., with 76% of consumers expecting flexible payment methods . This helps you capture more sales and even expand into new markets. Here’s a more detailed breakdown of these benefits:

• Higher conversion rates: Customers are more likely to complete purchases when they see their preferred payment method at checkout.
• Reduced cart abandonment: Many abandoned shopping carts result from limited payment choices. Expanding payment options removes that friction.
• Improved customer experience: Shoppers appreciate the convenience of choosing how they pay, whether it’s a credit card, digital wallet, or BNPL service.
• Increased trust and security: Recognizable payment methods, such as PayPal or Apple Pay, make customers feel more confident when entering payment details.
• Expanded market reach: Different regions and demographics favor specific payment methods. Offering a diverse selection helps you sell internationally and attract a wider audience.

Not every customer prefers the same payment method. After all, we all come from different generations, backgrounds, locations, and purchasing habits. That’s why it’s important to try and offer a mix of options, or at least understand what your target audience prefers. You can look at preferred payment options for your customer base in a couple of different ways:

Different generations have different payment habits, often shaped by convenience and security concerns. Understanding generational preferences helps you tailor your ecommerce checkout experience to different customer segments. For example, if you have a more niche business offering that sells best to younger generations, it’d be wise to offer digital wallet and mobile payment options. Let’s look at their preferences:

• Gen Z (Ages 18-26): Prefers digital wallets, BNPL, and mobile payments over traditional credit cards. Many avoid credit cards altogether, favoring alternative financing options.
• Millennials (Ages 27-42): Comfortable with both digital wallets and credit/debit cards, but also open to BNPL for larger purchases.
• Gen X (Ages 43-58): Still relies heavily on credit and debit cards, though many have adopted digital wallets for convenience.
• Baby Boomers (Ages 59+): Prefer credit cards and bank transfers, valuing security and familiarity over speed.

Payment trends also vary globally, often influenced by banking systems, mobile adoption, and local regulations. For businesses selling internationally, offering region-specific payment options can drive sales and build customer trust.

• North America: Credit and debit cards dominate, but BNPL and digital wallets are gaining traction.
• Europe: Bank transfers (SEPA), digital wallets, and credit cards are commonly used. Many countries prefer direct debit payments.
• Asia-Pacific: Mobile payments (WeChat Pay, Alipay) and digital wallets are the most popular, with cashless transactions being the norm.
• Latin America: Credit cards are widely used, but installment payments and digital wallets are growing in popularity.
• Middle East & Africa: Mobile money and bank transfers are common, especially in regions with limited banking access.

Providing the right online payment methods is about meeting your customers’ needs. which depend on various factors, including your customer base, industry, transaction size, and long-term goals. Here are some factors to consider when choosing your payment methods:

• Customer demand: Research how your target audience prefers to pay. If you cater to younger consumers, BNPL and digital wallets might be essential. If you operate globally, region-specific payment options may be necessary.
• Industry standards: Certain industries rely on specific payment methods. For example, B2B businesses often use bank transfers, while subscription-based companies need autopay options.
• Transaction fees: Every payment method has costs. Credit cards typically charge 2-3% per transaction, while bank transfers may have lower fees but slower processing times. Compare costs to find the right balance.
• Security and fraud prevention: Customers trust secure payment methods. Look for options that offer fraud protection, tokenization, and encryption. Compliance with Payment Card Industry Data Security Standard (PCI DSS) and other local regulations is also important.
• Ease of integration: Payment providers should integrate with your ecommerce business platform, CRM, and accounting tools. If a payment option is difficult to set up or causes checkout friction, it may do more harm than good.

Growth and scalability: Consider future needs. As your business expands, will you need multi-currency support, international payment processing, or recurring billing?

The right ecommerce platform will make it as easy and fast as possible to add new payment methods to your storefront. However, implementing new methods will still involve planning, testing, and optimization for a smooth customer experience. These are a few basic steps to keep in mind when adding a payment method.

Before choosing a payment method, consider how it aligns with your business model and customers.

• Who are your customers? Identify your ideal customers’ preferred payment methods based on demographics and location.
• What types of transactions do you process? One-time purchases, high-value transactions, and recurring billing all require different solutions.
• Do you need international payment support? If you sell globally, multi-currency options and region-specific methods are essential.

Not all payment providers integrate seamlessly with every ecommerce software, platform, customer relationship management (CRM) tool, or accounting system. Make sure that the provider:

• Works with your online store platform and checkout system.
• Supports industry-required security and compliance standards (such as PCI DSS).
• Offers fraud protection and chargeback management if needed.

A poor payment experience can lead to frustrated customers and lost sales. Before rolling out a new payment method, conduct:

• Test transactions to confirm that payments are processed correctly.
• Cross-device testing to see how well the method works on mobile, tablet, and desktop.
• Error-handling checks to verify that customers receive clear messages if a payment fails.

With a significant share of transactions happening on smartphones, your payments must be optimized for smaller screens. Make sure that:

• Digital wallets and mobile-first options are available.
• The checkout process is fast, intuitive, and touch-friendly.
• Payment forms autofill correctly and minimize typing.

A complicated checkout can drive customers away, but there are options like one-click checkouts. It’s also best to not make your consumers jump through a bunch of unnecessary hoops just to make a purchase. Make the process effortless by:

• Allowing guest checkout to reduce friction.
• Offering saved payment methods for returning customers.
• Clearly displaying security badges and trust signals.

Trust, loyalty, and repeat business stem from smooth payments. Your customers will take their business somewhere else if you don’t craft a convenient payment experience. But, we got you! Commerce Cloud helps you offer secure, flexible payment options by integrating with leading providers. Whether selling globally or managing subscriptions, you can accept different currencies while meeting local compliance standards. Security is built into every transaction, reducing fraud without adding extra steps for customers. Besides, with more shoppers buying on mobile, Commerce Cloud helps payments work seamlessly across devices. The result? It can reduce drop-offs and improve the buying experience.

Providing diverse payment options increases the likelihood of a successful sale. Learn how Salesforce Commerce Cloud can help you create a memorable checkout experience that meets customer expectations.