Nowadays, your company may increase transaction conversion and its worldwide reach by accepting new payment options. Besides paying by cash or bank account, scientific and economic development has created a lot of improvements for society. Various payment methods are available while conducting financial transactions. Several popular ways to pay as below, let’s go through with Link Language Academic!
Method 1. By Cash
Both small businesses and large corporations continue to accept payment methods with cash, which is still an easy (though time-consuming) choice. It’s especially well-liked among elderly consumers and customers who are less familiar with technology and favour using actual money. In spite of this, paying with cash can be challenging if a customer needs to make several pricey transactions. Finally, payment methods by cash transactions carry a larger risk of accounting errors unless you keep meticulous records.
Method 2. Credit Cards
Credit cards provide a simple and quick way to complete all types of financial transactions. Customers can use a credit card to make purchases up to a specified credit limit from bank issuing the card. In order to increase the security of the transaction, certain corporations provide contactless credit cards that employ radio-frequency identification. Customers can establish a strong credit line by making on-time payments on their credit card bills.
Method 3. Debit Cards
Debit cards are payment methods, which connect to a user’s bank account in order to make a payment transfer. It typically don’t have yearly fees and don’t charge interest to the recipients, which can increase use. However, some customers prefer using credit cards because they offer less fraud protection and don’t raise a customer’s credit score. The hardware required in-store to handle debit cards is the same as that required to accept credit cards.
Method 4. Online Payment Platforms
Users can utilise their bank account or credit/debit card information to make online payments through platforms like PayPal, or Square. All of these payment methods make it possible to electronically move money from a single account to another. These payment methods’ quick transaction times and decreased reliance on cash are valued by customers. Especially, 82% of Americans now utilise digital payment methods, according to McKinsey’s market survey in 2021.
Method 5. Mobile Wallets
Users of mobile wallets can conduct contactless payment methods by tapping their smartphone or watch on a payment terminal. They also store the payment details on their mobile devices, such as Apple Pay, Samsung Pay, or Google Pay. You can digitise and move these assets around using a mobile wallet while also increasing client interaction on mobile. Nowadays, almost everyone uses a smartphone, which greatly facilitates the development of this form of payment.
Method 6. Bank Transfers
Through the process of this payment method, users will transfer their money from a single banking account to another. You can accomplish it by visiting a financial institution’s branch or using the internet for banking or mobile banking applications. Not only bank transfers, using an electronic funds transfer (EFT) is a convenient method, which many users prefer to use. Whether it is a bank or EFT, they operate according to a common rule and support for your transactions.
Method 7. Checks – Cheque, the document used for making a payment
Checks were a common form of payment in the past, but they are now less frequent. They entail writing a cheque that includes the requested payment amount, recipient information, the recipient then deposits the cheque. In essence, checks serve as a means of instructing the bank to transfer money from the payee’s account. In daily life, we can use checks to pay bills, send presents, or transfer money among two individuals or organisations.
Method 8. Money Orders
Money orders are permits that enable you to receive cash on demand and are often issued by a banking institution. This method is more secure than paper checks since they do not contain confidential data like bank routing numbers. It is helpful in cross-border commercial transactions because they can be redeemed in other nations as well. Money orders are difficult to track and may require a fee to cash because of the lack of personal information.
Method 9. Contactless Payments
In the big cities, many customers have used contactless payments, which use near-field communication (NFC) technology to make transactions. Mobile wallets and debit or credit card with payment capabilities that include contactless chips can both be used for this. Businesses that accept contactless payments have point-of-sale terminals with a unique logo for the system that looks like the wifi logo. However, magnetic stripes found on the back of the cards can be used by thieves to steal and copy information.
Method 10. Cryptocurrencies, one of the payment methods that get a lot of attention
For some online purchases, you can use cryptocurrency like Bitcoin, Ethereum, Dogecoin or Litecoin as a payment option. Each retailer has a different policy regarding accepting these digital currencies, which employ encryption technology to secure transactions. According to Coinmarketcap, there were more than 1,500 cryptocurrencies in 2018; Bitcoin and Ripple are the most popular ones. Although distributed ledger technology has the potential to lower the cost of transfers, promote financial inclusion, it also carries risks.
Some notes for an effective transaction
Offering your consumers a variety of payment methods enhances your customer service and helps to build stronger client relationships. It is important to remember that the range of payment options may differ depending on the nation, the retailer, or personal preferences.
The retail service industry as well as the supply of goods is increasingly developing according to the trend of science and technology, which requires you to innovate business policies, including payment methods to keep up with market trends. Finding new payment methods can also help you in cutting costs and optimizing your business.
Last but not least, we has compiled and analyzed the top 10 most popular and prominent payment methods in the world today. When applied to the retail industry in Vietnam, there will be different advantages and disadvantages, it depends on the nature of your business and usage needs. We hope the above information will be useful and necessary for your business!