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What are the best payment options for eCommerce websites?

Whether running a local e-commerce business or operating an international online store, choosing suitable payment options is crucial for customer satisfaction.

So many solutions are available to merchants for accepting payments online, so it can be a challenge to select the best one.

Types of payment options for eCommerce websites

In today’s digital world, electronic payments are the driving force behind the success of any business that operates online.

When you offer a convenient, safe, and reliable way for customers to pay online, you can create strong and loyal relationships, encourage consumers to spend more on your website, and ultimately – grow your business. 

Here are some of the most popular payment methods suitable for an eCommerce website: 

  • Card payments;
  • Mobile payments with digital wallets;
  • Buy now, pay later;
  • Electronic checks;
  • Bank transfers;
  • Cryptocurrency;
  • Cash on delivery.

While you can accept payments via every one of these options, there are fundamental differences between all of them.

Later on in this article, we’ll examine each payment processing system in more detail.

What to consider when you choose payment options for your website?

There are several factors to consider when you explore different eCommerce payment methods for your business.

Here are the main things to consider when you choose payment options.

Transaction fees 

Not all payment methods are the same from an expense perspective.

When you evaluate different payment options, always ask for information concerning the processing fees that will be charged for each payment. If possible, discuss the monthly fees that will apply to your business for using the payment processing services. 

Credit card payments are usually associated with more substantial transaction fees than other payment methods. However, these costs are different for all payment service providers.

Safety and security

To guarantee the security of both the business and its customers, selecting secure payment processing for your eCommerce website is essential.

Usually, secure payment methods are considered to be the ones that utilise safety features, such as two-factor authentication, fraud prevention, encryption, and more. 

Throughout your research into eCommerce payment methods, gather data on the security capabilities of the potential payment provider.

Location and target audience 

Before you choose the options for accepting online payments for your online store, it’s also highly recommended to think about factors such as the audience’s demographics and your location.

The digital world has created endless opportunities and contributed to specific generational gaps. 

For example, consumers between the ages of 18 and 40 tend to spend more time on their mobile devices, which means that their preferred option may be digital wallets. On the other hand, older audiences might rely on a rather traditional payment solution, like credit cards. 

The location of your target audience also determines these preferences. For instance, while cash on delivery is becoming more popular in certain countries, in others, this payment method might be doomed to failure. 

When you choose the right eCommerce payment processing solution for your business, you can offer convenience to your customers and increase the potential for higher sales volumes.

Platform compatibility 

Another element that is specific for providing online transactions in the eCommerce industry is platform compatibility. 

Each e-commerce platform provides a different set of features and functionalities. While some may be designed to support specific payment options, this may mean extra integration work for others. 

Depending on the structure of the business and the available resources, this may result in substantial expenses and time-consuming activities.

Payment options

The best payment options for eCommerce 

Earlier, we mentioned the variety of payment processors you can choose for your eCommerce website. But what are the best payment methods for online purchases?

According to a study in the UK, by 2022, 35% of e-commerce consumers preferred to pay online using digital wallets.

In the same year, card payments were the most popular way for customers to pay in the UK’s e-commerce market. 97.1% of online payments were made using VISA and Mastercard. At the same time, 82% of consumers used PayPal.  

However, prognoses show that by 2026, digital wallets will be the most popular payment method for ecommerce payments, followed by credit and debit cards.

To understand the logic behind these statistics, we provide a detailed overview of each payment option for eCommerce websites.

Card payments

When we talk about the most popular eCommerce payment methods, getting started with card payments is essential.

In this connection, debit and credit cards are one of the most frequently used payment methods. However, other alternative options are worth exploring, too. Such an example is prepaid cards.

In the following sections, we step into the world of credit card payments in more detail.

Debit card payments 

Debit cards, along with credit cards, are among the most popular payment options for e-commerce websites in the UK and all over the world. 

However, they rely on two completely different processes. 

Debit card payments that are linked to the user’s bank account provide direct access to the cardholder’s funds. Once the customers initiate an online payment with their debit card, the money is instantly withdrawn from their account.

In this case, there is no line of credit to consider – it is a scenario typical for credit card payments. 

The payment is immediately declined if the customer doesn’t have enough funds in their debit card for the transaction. 

eCommerce websites that accept online payments by debit cards can rest assured that recurring payments are supported. 

Among other reasons, the security features of debit cards have been a critical factor in the increased use of debit card payments.

The customer must provide their PIN code to complete a debit card transaction. In addition, every transaction passes through a card network, such as Visa or Mastercard. This process helps prevent fraud and confirms if the purchase is made from a verified bank account.

To briefly summarise, the main benefits of accepting debit card payments on your eCommerce website are:

  • Ease of use for consumers;
  • Convenience;
  • Instant money withdrawal;
  • Security;
  • Recurring payments.

Credit card payments 

Credit card payments are the second most used payment processing option among e-commerce businesses. 

Credit card companies, like Mastercard, American Express, and Visa, provide consumers with a line of credit to complete purchases with a pre-determined limit. 

When customers make a transaction, credit card issuers cover the purchase amount, which enables clients to settle their card balance at the end of each billing cycle. Consumers only need to provide their credit card details when shopping online. 

The customer’s account information is sent to the merchant bank when the credit card payment is initiated. The merchant bank only completes the transaction when the credit card network authorises the payment.

The security feature that ensures that credit card transactions are safe for eCommerce businesses is CVV (Card Verification Value). Malicious behaviour can quickly be detected by comparing CVV numbers against the cardholder’s information.

Besides their usability benefits, consumers can enjoy discounts, reward programs, and credit-scoring perks.

Although credit card payments are a popular option, they are usually associated with additional payment processing fees. 

In summary, the advantages of credit card payments for eCommerce websites include:

  • Customers can shop now and use personal capital later;
  • There is no need to carry around cash, making this payment option safer;
  • Increase chances for larger purchases;
  • Offer extras for consumers, like credit history build-up, rewards, and more.
Card payment on ecommerce websites

Prepaid card payments

Prepaid cards are another increasingly popular method in the eCommerce sector as well. 

They apply to both online and in-store transactions, as they support chip and PIN and contactless payments

What’s specific about prepaid card payments is that they don’t require a connected bank account. On the contrary, the card comes with installed funds and can be topped up upon request. 

Prepaid cards are preferred for customers who want to control their spending more precisely. They’re also recommended for younger people, as age limits are lower. Some prepaid cards are appropriate for children at the age of 6. 

Overall, the main pros of accepting prepaid card payments are as follows:

  • Various age groups, including younger individuals, can use it;
  • Better spending control for shoppers;
  • No need for a bank account;
  • No sensitive data collection.

Mobile payments with digital wallets

Earlier, we noted that digital wallets are among the most preferred payment options for online consumers in the UK.

Digital wallets, e-wallets, or electronic wallets are payment solutions that provide users with a quick and instant shopping experience. They store the user’s payment information and enable them to make online and in-person transactions. 

Via this reusable payment method, customer payment details are provided once. The consumer’s bank account is linked to the wallet and connected to a mobile device, usually through an app. 

The data is stored, eliminating the additional sharing of debit or credit card details credentials when shopping online. 

Some of the most popular providers used in the digital wallet space include Google Pay, PayPal, and Apple Pay

The reasons behind the popularity of digital wallets and mobile payments include:

  • Security;
  • Ease of use;
  • Instant payments;
  • No requirements for credentials and sensitive information.

Buy now, pay later 

In cases where shoppers don’t have sufficient funds to complete a transaction on your website at the time of shopping, buy now, pay later offers a solution.

This payment option works based on interest-free credit. Consumers can pay the total amount of their purchase in smaller, individual payments later than at the time of purchase.

Customers can pay the total amount of their purchase in smaller, individual payments later instead of providing the total payment when shopping.

Buy now, pay later is an efficient way for online shops to process payments when their products are more expensive.

The perks of this payment option are:

  • Shoppers can afford products that they can’t pay upfront at the time of purchase;
  • No interest;
  • Convenience;
  • Security.
Card payments for an ecommerce websites

Electronic checks 

Like traditional paper checks, electronic checks enable online payment processing quickly and seamlessly. 

When relying on e-checks for online shopping, consumers approve payments straight from their online bank accounts. 

While this form of payment was among the first eCommerce shopping options, it remains a preferred solution by many.

The benefits include:

  • Faster processing times;
  • Direct approval;
  • Low charges;
  • Security.

Bank transfers

Bank transfers are another payment option for eCommerce websites. However, they’re usually convenient for larger transactions, like expensive furniture, machinery, etc. 

Although some consider this form of payment rather outdated, it is still being used today by digital stores worldwide. 

Forecasts suggest that bank transfers will thrive due to initiatives like PSD2, which enables non-banks to complete payments without the help of standard card networks. 

While online shopping is increasing yearly, some individuals still hesitate due to security concerns and uncertainties. The most frequently seen reason behind this is the requirement to provide credit or debit card credentials.

Bank transfers eliminate this from the equation. Via this payment option, shoppers send funds from their bank account to the business’ bank account. No financial details are collected, making this a secure way to pay. 

For international payments from the UK, users are requested to have an account number, sort code, IBAN and SWIFT.

In conclusion, the benefits of bank transfers include:

  • Security;
  • No financial details were shared.


Blockchain-based solutions like cryptocurrency have also made a strong entrance into online payment processing in recent years.

Digital currency or tokens are now a popular and modern way to complete transactions. 

To process payments using this method, shoppers who own cryptocurrency can transfer coins or tokens to a blockchain-supported address. 

The technology works on the foundations of smart contracts, which can be pre-coded to collect or send funds based on specific conditions automatically.  

Although this payment option is relatively new, it is quickly gaining popularity due to the advantages it offers:

  • Sole reliance on an Internet connection for payments;
  • Security;
  • Decentralisation;
  • Low fees.

Cash on delivery

Cash on delivery (COD) allows consumers to pay for cash in person when their items have been delivered.

Although the term used for this payment option is “cash on delivery”, shoppers can also use cards as long as the carrier provides a card machine

Cash on delivery is a leading payment method for eCommerce sites operating in regions where cash still dominates. 

However, it doesn’t rank among the top-used payment options in the UK.

Some of the core benefits of this payment solution are:

  • No financial details required;
  • Convenience to pay with cash when shopping online;
  • Shoppers can check the delivered items for any damage;
  • Security.
Ecommerce website payment options

Can you choose more than one payment option for your e-commerce website?

Once you are familiar with all the available payment options for accepting payments on your websites, you may wonder which is the perfect solution for your business.

The good news is that you don’t have to choose a single payment option. Instead of just one, you can provide multiple payment methods to your online shoppers. 

However, you’ll need a reliable payment gateway to support multiple online payment methods on your website.

Online payment gateways enable merchants to offer different payment options via a single partnership. 

These payment processors provide software solutions that can be integrated into your e-commerce store to process payments via virtual gateways. They establish a connection between the essential third parties and handle the transactions. 

E-commerce payment gateways are responsible for processing the shoppers’ payment data and creating links to enable the completion of the purchase. 

Once you sign up and integrate the payment gateway into your website, you’ll be able to receive consumers’ funds after the payment processors deposit the funds into your merchant account.

Some of the UK’s most popular payment gateway providers include Revolut, Stripe, Fondy, and Planet.

How to set up your eCommerce website and accept payments

If you’re ready to take the next step and enter the world of eCommerce, you can easily create a free online shop with myPOS. You can select from various available themes, customise your shop, and integrate a seamless online payment checkout

Enjoy a quick and easy set-up, no hidden costs, instant settlement of funds, and convenience for your shoppers.


If you want to grow your online shop into a success story, providing shoppers with convenient, safe, and secure payment options is fundamental. 

Above, we concluded that some of the most popular payment options for eCommerce websites include credit and debit card payments and digital wallets. 

However, other solutions, like cryptocurrency, bank transfers, electronic checks, and others, still prevail in today’s online business environment. 

To choose the right payment methods for your digital store, consider the provided tips and insights and make a strategic decision that will support your goals.

Frequently Asked Questions

Some core components to consider are location, target audience, transaction fees, platform compatibility, and security.

Yes, you can support multiple payment options on your eCommerce website. To do so, you’ll need to use a payment gateway.

Yes, in most cases, offering more than one payment option to shoppers is better, as it provides convenience, flexibility, and ease of use.

Some dominating payment methods in online businesses include credit and debit cards, digital wallets, bank transfers, and direct deposits.

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