Top Payment Options

Top eCommerce Payment Methods

Customer experience is one of the most important criteria for success on an eCommerce platform.

Multiple factors determine eCommerce customer success like product delivery speed, customer services, customized support including seamless eCommerce payment methods. However, it is often the payment method that compels customers to leave complete purchases through a shopping website or app. Thus, payment is not just another feature of eCommerce but an excellent opportunity for businesses to retain customers. 

The mode of payment has witnessed a revolution in recent years. Today, customers can choose from multiple payment options when completing transactions for online shopping. 

Each user has different requirements when it comes to making payments online. Some prefer using a digital payment method, while others prefer to make payments in cash. For this reason, an eCommerce platform comes up with multiple options that different users can choose from based on their convenience.

Know the various eCommerce payment methods and which one is useful for different categories of customers purchasing products online. 

Different eCommerce Payment Methods 

The payment options are broadly categorized into online payment and cash on delivery (COD). Online payment can be done using multiple options such as digital cards, virtual wallets, UPIs, etc. The COD method is used by customers who want to make the payment once an order is received.

Different modes of payment are defined depending on users’ requirements that vary based on geographical location, shopping habits, convenience, and more.

According to a Statista report, digital and mobile wallets accounted for around 45 percent of global eCommerce payment transactions, making it the most popular online shopping payment method worldwide. Credit cards ranked second with a 23 percent market share in 2020. The report also states that digital wallet payments will likely increase by 50 percent in 2024. 

Know the different modes of payment in eCommerce and which payment method is best for customers.

Credit Card Payment 

A credit card is the easiest and most convenient way of making payments online. It is one of the most widely used payment methods in electronic form.

When a customer makes a payment using a credit card, the bank issuer pays on behalf of the customer. The customer pays to the bank after a certain period, based on their credit card bill. Here is how the credit card payment system works in eCommerce:

  1. The customer enters credit card information at the merchant site.
  2. The merchant validates the identity of the customer from the card company.
  3. The card company authenticates the credit card and pays for the transaction.
  4. The merchant keeps the slip.
  5. The merchant submits the sales slip to the acquirer bank.
  6. The acquirer bank requests the card company to credit the amount and gets the payment.
  7. The card company asks the issuer bank to clear the amount, and the amount gets transferred to the card company.

Debit Card Payment

Debit is another medium of payment using a digital card. A debit card is mapped with the bank’s account number. The difference between a credit card and a debit card is that in the case of a debit card, the amount is directly debited from the bank account, hence there must be sufficient funds in the account for payment.

The debit card is one of India’s most popular modes of payment as the user base is high. The user can enter debit card details like card number, CVV, and OPT securely at the time of payment.

According to a report by Statista, the value of debit card payments in India for FY 2021 was INR 6.6 trillion. The value of credit card-based payments was INR 6.3 billion during the same time period. The same report predicts that the Indian digital payments market will reach one trillion U.S. dollars by 2023.

Electronic Wallet 

An electronic wallet or e-wallet is also known as a digital wallet. It is an online shopping payment method in which a payment app is used to make an electronic payment.

To begin using an e-wallet, the user must add money in it using a linked bank account, debit, or credit card. The user must have a smartphone, payment app, and an internet connection to make the digital transactions. 

According to Statista, the estimated value of mobile wallet transactions in the financial year 2021 across India was over 1.5 trillion Indian rupees.

The increased penetration of smartphone users in India is the reason for the growth of electronic wallet payments.

Payment Wallet 

eCommerce websites or apps have an inbuilt wallet option to offer fast payment services for users. It is the most convenient way of making payments online as the money is already stored in virtual form. The user can make a payment with just one click without the need to add any credentials to complete the transaction.  

The amount is automatically deducted from the wallet each time a purchase is done. Here are multiple benefits of using an inbuilt virtual wallet for online transactions. Know what they are below: 

  • Fastest mode of online transactions
  • Cashback option
  • Coupons and offers are available
  • Useful for regular transactions
  • Highly secure payment

Cash on Delivery (COD)

Even though the online mode of payment on eCommerce has risen significantly in recent years, the cash on delivery mode of payment still remains one of India’s preferred modes of payment.  

According to a survey report by Statista, 42% of respondents in India say that it is important for them to pay by cash while buying online. (Original source: YourLibaas.com).

Here are the reasons why COD is still a preferred mode of payment by customers in India:

  • Familiarity with COD payment
  • Minimize blocked cash
  • Lack of trust with online payment
  • Convenience to make payment

COD is a convenient method of payment for customers. It may not always be favorable for online sellers as their payment is blocked until the shipping service provider transfers it. 

Use Pickrr shipping solutions and say goodbye to all issues related to COD payment for your business.  

Pickrr’s Early COD Remittance service helps sellers to claim their COD cash as early as 24 hours. This helps them to maintain the flow of cash and run business smoothly.

Which Online Shopping Payment Method is the Best?

Easy checkout is one of the most crucial features for making the buying experience effortless for customers. Users look for simple and secure payment methods to complete transactions.

Until a few years ago, there were only a few online payment methods. But today with the advancement of technology and innovation, users can choose from multiple eCommerce payment methods which are best suited for them.

Each user has different preferences when it comes to making payments for online purchases. Hence, businesses must ensure to include multiple options for users so that each one can make a choice of payment as per the convenience. 

Whichever is the eCommerce payment method, it must meet specific standards to keep customers satisfied. These are fast checkout, secure payment, and bank authentication.

Advantages of Multiple Payment Methods 

Multiple payment options help customers to use the mode of payment at their convenience. With multiple payment options, the user always has a backup in case one payment fails due to a technical error. Thus, the user is not forced to give up on the purchase.  

Know the benefits of offering multiple payments for businesses here:

Enhance User Experience

Multiple payment options make checkout easy for customers, as they can choose the method with which they are most familiar. Customers feel more secure while making payments. Also, they feel that their choice matters the most to the service provider. 

The option to switch to a different mode of payment when one translation fails is only possible when there are multiple payment methods.

Minimize Cart Abandonment

Offering limited payment options is one of the major reasons why carts remain abandoned on an eCommerce site. Multiple payment options reduce the number of online buyers who leave the store when a payment fails. 

A customer will likely complete the purchase when they have the payment mode that they are looking for, be it a digital form of payment or COD.

Instill Customer’s Trust 

Customers prefer multiple payment options as they are not restricted to using limited ways to make payments. They can use the payment option which is most suitable for them for every purchase they make. 

Customers tend to be happy and satisfied due to flexibility and convenience. 

Improve Conversion Rate 

The chances for a customer to complete payment when offered multiple payment options are higher when given limited options. The conversion rate improves with each complete transaction.

Improving the conversion rate is the ultimate goal for any eCommerce seller. Offering multiple and secure payment options is one of the ways to improve the conversion rate.

Enhance Sales

Offering multiple payment options plays a significant role in increasing repeat customer purchases from an eCommerce site. This helps businesses build a strong loyal customer base, subsequently improving their sales.


Smooth payment on a website gives a pleasurable shopping experience to customers. 

They feel they have complete control over online shopping with multiple payment methods.

Customers prefer repeating purchases from sites that offer fast and secure payment options. This leads to customer retention and increased sales that can benefit a business in the long term.

Online sellers must ensure that their online store is integrated with reliable and secure payment options with multiple options. They must also connect with a reliable shipping service provider so that they can retrieve the COD payment amount on time.

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