Last editedDec 20222 min read
A web payment system, or an e-payment system, is a way of taking payments online. There are a variety available, from e-wallets to credit and debit card payment systems.
Depending on which online web payment systems you have set up, you can encourage more sales and see significant growth in your ecommerce business.
In this article, we’ll define web payment systems, take you through some of the most common examples of them, and explain how the right ones can ignite growth.
What is a web payment system?
A web payment system is a means of making transactions and purchases online via electronic means.
The most popular online payment systems are electronic wallets and debit and credit card payments. However, there are a wide range of other options, including apps and wearable payment devices.
Offering a wide range of payment options on your ecommerce store will help attract more customers. Indeed, customers are often put off when their preferred payment method is not available, and this can lead to high checkout abandonment rates.
Types of web payment system
Know clear on what they are, let’s look at some of the most common web payment systems available:
Electronic wallets
E-wallets or digital wallets are some of the most popular e-payment systems in North America. Their popularity is driven by their ease of use and high security measures.
With e-wallets, customers essentially store their card details in the wallet and so can quickly check out without needing to type in any details or hold a physical card.
Mobile wallets or mobile apps
Mobile apps are often referred to as if they are interchangeable with e-wallets, but in fact, they are actually a subcategory of the e-wallet payment system. The difference basically lies in how the wallet is accessed. Digital wallets can be used on any and all devices, while mobile wallets can only be used through a designated mobile application.
The most well known examples of mobile wallets include PayPal, Apple Pay and Google Pay.
Credit or debit cards
Traditional credit and debit cards remain popular web payment systems for carrying out online transactions. Visa, Mastercard, Discover and American Express are among the most famous.
Included in this category are prepaid cards, or stored value cards, as well as smart cards (which have the chip inside).
Direct debit
Direct Debit is a 'pull' payment that is often used by businesses to collect recurring payments. Customers are only required to set it up on one occasion, and from there, the business can take recurring payments at different frequencies and amounts.
GoCardless provides an ACH Debit solution that enables businesses to collect payments directly from their customers' bank accounts. Your customers set up ACH Debit payments online, and as soon as authorization is in place, you can collect one-off or recurring payments from customers automatically.
How your web payment system can ignite growth
Having the right range of web payment systems available to customers who shop online with you can have an impact on your growth.
Firstly, offering several different payment types can help you appeal to more customers which will translate into more sales and therefore more profits.
The added convenience of offering e-wallet payments can also help increase customer satisfaction. Satisfaction is key as it encourages consumers to make return visits to your store, and can even lead to them telling their friends and family about their positive experience. This will result in more customers, more sales, and higher revenues.
If your business adheres to a subscription model, you might consider opting for GoCardless’s ACH debit payments solution as a means to collect customer payments. This can avoid late payments occurring, and other issues, such as chargebacks, which arise with credit and debit card payments. This will drastically improve your cash flow, helping you concentrate on steady and healthy growth.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.
