Payment Methods Every Business Should Offer to Stay Competitive

Selecting the right payment methods for your online business is crucial to maximizing revenue. Customers expect convenience, security, and flexibility when making purchases, and the availability of multiple payment options can be a key differentiator in whether a customer completes a transaction or abandons their cart.

A reliable payment provider will offer you a secure payment environment, a unified interface for managing your chosen payment methods, and the ability to operate seamlessly across international borders. Understanding regional preferences and integrating appropriate payment solutions is essential when expanding into new markets.

This article will explore the most important payment methods every business should offer to stay competitive, focusing on factors like user convenience, transaction fees, security, and adaptability to different markets.

Credit and Debit Cards

Credit and debit cards are the most commonly used payment methods worldwide, and no business can afford to overlook them. Visa and MasterCard are accepted nearly everywhere, while regional variations like American Express, Discover, or local networks such as Maestro or UnionPay can boost your appeal in specific markets.

Offering credit and debit card options ensures that businesses cater to a broad audience. Consumers are familiar with this payment method, and it is often the first option they expect to see. Credit card payments also come with built-in security features like chargebacks, which provide consumer protection and enhance trust. However, businesses should also be aware of the transaction fees associated with these payments, as they can vary depending on the provider and region.

• Key Takeaway: Offering both global and regional credit and debit card networks is vital for reaching the widest audience possible. Businesses should weigh the cost of transaction fees against the potential increase in sales.

Digital Wallets

The rise of mobile technology has given way to the growing popularity of digital wallets like Apple Pay, Google Pay, Samsung Pay, and PayPal. These wallets offer consumers the ability to store multiple payment methods, including credit cards and bank accounts, and pay with just a tap or a click. Digital wallets are not only convenient for customers but also provide an additional layer of security through tokenization, which protects sensitive payment information during transactions.

For businesses, digital wallets can increase conversion rates, especially for mobile users. Many customers prefer the simplicity of completing a purchase using a stored payment method, without the need to repeatedly enter their card details. This ease of use reduces friction in the checkout process, which in turn reduces cart abandonment rates^[2].

• Key Takeaway: Integrating digital wallets is essential for businesses that want to offer their customers speed, security, and a streamlined checkout process, especially for mobile transactions.

Bank Transfers and Direct Debits

Bank transfers and direct debits remain a trusted and reliable payment method, particularly for larger transactions or recurring payments. In Europe, for example, the SEPA (Single Euro Payments Area) system facilitates easy and low-cost cross-border payments within the Eurozone. In LATAM, options like SPEI in Mexico and wire transfers are key players, while in Brazil, the real-time payment system PIX has transformed the market.

Bank transfers provide businesses with reduced transaction fees compared to credit card payments, making them ideal for high-value transactions. They are also commonly used for subscription-based services, where direct debits allow businesses to automate recurring payments without requiring customers to take any further action after the initial authorization.

• Key Takeaway: Offering bank transfers and direct debits, particularly in markets like Europe and LATAM, can cater to customers who prefer direct payments and help businesses minimize transaction costs^[2].

Buy Now, Pay Later (BNPL)

The Buy Now, Pay Later (BNPL) model has become increasingly popular, particularly among younger consumers^[3]. Services like Klarna, Afterpay, and Affirm allow customers to make purchases immediately but pay for them over time, often in interest-free installments. This payment method appeals to consumers who want more flexibility in managing their finances, especially for larger purchases.

From a business perspective, offering BNPL options can drive higher conversion rates and increase the average order value, as customers are more likely to make larger purchases when they can spread the payments over several weeks or months. However, it’s essential to carefully assess the fees associated with BNPL providers and whether they align with your business model.

• Key Takeaway: BNPL options can boost sales and average order value, particularly for high-ticket items, but businesses should evaluate the fees and risks involved in offering this payment method.

Local Payment Methods

Global businesses need to cater to the payment preferences of different regions to expand successfully. In many countries, local payment methods are more popular than global credit cards or digital wallets. For example, PIX is quickly becoming the dominant payment method in Brazil, while Alipay and WeChat Pay are essential in China. Understanding these regional preferences can significantly improve conversion rates and customer satisfaction.

CommerceGate specializes in local payment solutions for Latin America, offering businesses access to systems like PIX and Boleto Bancário in Brazil. These methods are crucial for reaching unbanked or underbanked populations and adapting to local consumer habits.

• Key Takeaway: Incorporating local payment methods tailored to specific regions can dramatically increase conversion rates in international markets, particularly in emerging economies.

Cryptocurrency

Cryptocurrencies like Bitcoin, Ethereum, and Stablecoins have made significant strides as alternative payment methods, particularly in tech-savvy or niche markets. While cryptocurrency is not yet mainstream, it is worth considering for businesses that cater to customers who value privacy, decentralized finance, or the ability to make cross-border transactions without the need for traditional banking systems.

Businesses accepting cryptocurrency can benefit from lower transaction fees and faster settlement times compared to traditional methods. However, the volatility of some cryptocurrencies may pose a risk, making stablecoins or immediate currency conversion options a safer alternative for businesses.

• Key Takeaway: Offering cryptocurrency as a payment option can appeal to tech-forward customers and reduce transaction costs, but businesses should be mindful of market volatility and conversion processes.

Subscription Billing and Recurring Payments

Automating billing and recurring payments is essential for businesses that offer subscription services. Payment methods like credit cards, direct debits, and digital wallets can be set up to automatically charge customers at regular intervals. This not only ensures a steady revenue stream but also improves customer retention by eliminating the need for manual payments.

Subscription billing systems should be easy to integrate with your existing platform and offer flexibility for customers to update payment details or cancel subscriptions. Additionally, businesses should consider using a Payment Service Provider (PSP) that offers fraud prevention and compliance solutions, particularly for high-risk industries or regions.

• Key Takeaway: Automated recurring payments are a must-have for subscription-based models to ensure consistent revenue and improved customer satisfaction.

Security and Compliance: A Non-Negotiable Priority

No matter which payment methods a business offers, ensuring security and compliance is the key to success. Industry standards like PCI DSS (Payment Card Industry Data Security Standard) should be met to protect sensitive customer data. Tokenization, encryption, and two-factor authentication are just a few features that can enhance security for online transactions.

In regions like Brazil and LATAM, compliance with AML (Anti-Money Laundering) regulations is particularly important, given the prevalence of fraud and money laundering activities. CommerceGate’s AML PIX solution helps businesses monitor transactions, reduce fraud, and ensure compliance with local regulations, all while streamlining payment operations.

How CommerceGate Helps You Offer the Right Payment Methods to Stay Competitive

To stay competitive in today’s fast-paced digital landscape, businesses must go beyond the basics and offer a diverse range of secure, user-friendly payment methods. Whether it’s enabling credit card transactions, integrating digital wallets, or tapping into local solutions like PIX in Brazil, providing flexibility at checkout is key to capturing more sales and enhancing customer loyalty.

By partnering with a trusted Payment Service Provider like CommerceGate, businesses can access the tools they need to offer a comprehensive range of payment options, streamline their operations, and maximize conversion rates.

Are you ready to expand your business to new markets? Start by selecting the right payment methods with CommerceGate!

^[1] https://www.bigcommerce.com/blog/mobile-checkout-optimization/

^[2] https://www.nuvei.com/posts/myth-or-reality-does-pay-with-bank-transfer-benefit-merchants

^[3] https://www.finextra.com/blogposting/26431/bnpl-trends-live-now-pay-later