By Ben Clarke, Digital Marketing Analyst at James and James Fulfilment
eCommerce payment systems are one of the means by which we purchase goods and services online. With the ever growing rise of digitisation, online transactions are becoming increasingly popular and eCommerce companies need to make this option accessible for customers if they hope to run a successful business.
The eCommerce industry began in the 1970s with credit cards emerging popular among consumers at this time. In the past few years, eCommerce has boomed with many companies expanding their operations to run primarily online. This growth has meant that new ways of payment have become necessary to allow for more seamless transactions and customer service. It is not uncommon for eCommerce businesses to now outsource their order fulfilment to a professional fulfilment house who handles everything from inventory management to payment for them.
For this reason payment systems have evolved tremendously, leading to an increase in eCommerce sales globally. For example, PayPal emerged as one of the first and most successful forms of online payment and continues to dominate the market today and more recently, mobile technology has helped eCommerce payment systems flourish with internet users increasing. Credit card fraud and security breaches have also increased which has only made the demand for secure online payment systems greater.
So let’s go back to basics, what is an eCommerce payment system?
An electronic commerce payment contains a set of unique instructions allowing funds to be transferred from one account to another. The funds can be transferred via credit card or debit cards, e-wallet accounts or other sources depending on the eCommerce payment system being used. Which option you choose is entirely up to you!
eCommerce Payment Systems are fast becoming popular given that consumers are increasingly buying goods and services online. The majority of eCommerce Payment Systems come in the form of digital wallets that allow consumers to purchase and pay for digital and physical goods and services. Some systems also enable the transfer of money directly from one person’s account to another, without having to use a third-party service. This is possible through a method of recording information in such a way that it is extraordinarily difficult or impossible to alter or hack. This is called blockchain technology.
However, a number of online payment systems are still using third party services and the future, companies are expected to focus more on eCommerce Payment Systems that can provide increased security, speed and convenience for users. The industry is also likely to see a rise in eCommerce payment systems built on blockchain technology.
What are the most popular eCommerce payment systems?
There are a huge number of eCommerce payment systems being used internationally, here are four of the most popular today;
1. Worldpay – Worldpay is a widely trusted eCommerce payment system used all over the world. In the UK, around 40% of all transactions are handled via this system making it an industry leader.
2.Shopify – Shopify is another extremely popular eCommerce payment system. It utilises cloud based software making it a quick and easy option for online payments.
3.Paypal – Multinational company Paypal enables its users to make purchases online with participating stores if your bank account, credit card, or debit card is linked to your PayPal account. As mentioned above. It has dominated the market for many years.
4.Klarna – Klarna has experienced a recent surge in use. It’s popularity can be attributed to the number of options it offers consumers. Not only can you pay for goods and services straight up but Klarna allows for buy-now-pay-later as well as installment payment options making online payment more accessible for many people.
To run a fully functional eCommerce website, you must have a way for customers to pay you. On top of that, you must make this process as quick and painless as possible. Getting paid is at the heart of your business so you want your payment to be simple for both you and your customers. Whether you’re building an eCommerce site from scratch or utilizing an existing, well-established platform, choosing a payment gateway is critical.
While there are many ways to pay for products online, it’s hard to know which system is best. We’ve outlined our favorite four innovative eCommerce payment systems above that can help you make the right decision. Do your research and find out which system is best for you. There are so many to choose from and if our predictions are correct, you will want to have at least one of these systems at your fingertips as they are potentially the future of eCommerce!
Do you have any favourites that we haven’t mentioned? Do you have a preferred method of paying for eCommerce goods and services that we haven’t mentioned? Leave us a comment, we would love to hear from you!
About the Author:
Ben Clarke is a digital marketing analyst at James & James Fulfilment, conducting business analysis and eCommerce consulting for both B2B and B2C. He has also conducted qualitative research in the past to help improve customer experience.
He’s got some serious analytical skills, but he’s more than just numbers!
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