Payment methods are ways in which customers can pay for a product or service, including cash, credit or debit card, gift cards, prepaid cards, and direct bank transfers.
Today’s consumers have many payment methods to choose from when purchasing a product or service.
If they’re shopping in-store, their payment method options likely include paying with cash, credit or debit cards, gift cards, contactless payment, and prepaid cards. If they’re shopping online, they might have several additional options, depending on the brand or retailer, including direct bank transfers, digital wallets, or payment processing tools like PayPal, Venmo, and Stripe.
To give customers the flexibility and convenience they want and need, businesses — especially those that offer omnichannel shopping experiences — should offer multiple payment method options to choose from.
Providing too many payment methods, however, can increase the financial complexity for the business. Getting to know customers’ payment preferences can help a business determine which kinds of methods are best to offer for their consumer base.