It may seem outrageous to think that business owners need convincing to sell online and accept online payments, but there are still a few surprising holdouts. Are you one of them?
If your business sells any kind of products or services, having an online store is the only way to expand your business and keep up with your competitors. In 2023, over a quarter of all shopping was done online, which only increased in 2024, and that rate is not slowing down any time soon. Even with all this information, almost 30% of small businesses still don’t even have a website, not to mention an online store. In this day and age when you yourself want the convenience of ordering everything online, shouldn’t you give the same options to your customers by accepting online payments? If they have the option to make a purchase online as well as walking into your store, then there is a higher chance they will make more frequent purchases.
So what are you waiting for? Let’s see what the best method for online payments for your business is:
What Are Online Payments?
Let’s start with the basics: online payments include everything that can be used to make purchases online. If you have an online store, you need to accept online payments, which pretty much include everything except cash.
The most popular method of paying for products online are credit and debit cards. Most consumers have cards and can easily enter their information when making purchases online. However, even though credit and debit cards are leading online payments, younger generations are not using them in the same way as their predecessors are. For example, according to GWI, 46% of Gen Z do not have a credit card, and are looking into newer payment alternatives like digital wallets.
While younger consumers are embracing digital wallets, that does not mean that older generations are not. Digital wallets like Google Pay and Apple Pay are easily housed on smart phones which flood across all generations as our society has grown more mobile. Because of this, digital wallet transactions are rapidly growing, already taking the lead over credit and debit cards for online purchases across the world, with America’s usage catching up. Mobile payments also fall into a similar category as digital wallets since most pull from a digital wallet or app.
Bank transfers are another way to accept online payments, but this method lacks the convenience and ease of credit and debit cards and digital wallets and is catered more towards consumers who do not have those, which are few. With the way that online shopping is trending, it is better for a regular online store to focus on accepting online payments via credit and debit card and digital wallets.
Advantages of Accepting Payments Online
Customer loyalty and business growth are the major advantages of accepting payments online, and business owners know to focus on those two very important things. Even if you have exceptional business coming through your brick and mortar store, you can exponentially expand your business by adding an online store and building a social media presence, all needing to accept online payments.
Most consumers do the majority of their shopping online, with 61% saying they go straight to Instagram, so why wouldn’t you take advantage of that? People actually prefer just entering their credit card information or tapping their digital wallet to pay from the comfort of their own homes. When you choose the best method for online payments, it makes it easier for your customers to order and pay online with a variety of payment options to make it more convenient for them. They will keep coming back and keep spreading the word, resulting in customer loyalty and significant business growth for you.
Quick Guide on How to Accept Payments Online
So, how can you accept online payments? These are the major steps to consider:
1. Find a Payment Processor
Having a great payment processor is essential in accepting credit and debit card payments. The payment processor is the one who takes the input payment information and sends it to its card network (Visa, Mastercard, Discover, etc.) for approval on the purchase. The card network informs the payment processor if the payment is approved, and if so, the transaction goes through. Once the transaction has been made, the payment processor then notifies the purchasing bank to send money to the merchant’s bank.
Popular payment processors like Stripe or Helcium can integrate with online store and point of sale systems to meet your business’ needs for accepting online payments.
2. Sync it with a Merchant Account
A merchant account is simply the account that your business sets up with the payment processor and/or bank that will receive the money made from online purchases. Some payment processors integrate a merchant account directly with their services, but others may need you to set one up separately with a bank.
3. Provide a Payment Gateway
The payment gateway is the actual place where the payment information is entered that then delivers it to the payment processor to ask for the correct approvals and complete the transaction. On an online store, this is where customers enter their card information. Similar to the merchant account, some payment processors can include a payment gateway bundle, but it depends on your subscription level. If the gateway is separate, the website will take the customer to the payment gateway page and then return them to the online store to finish making the purchase.
4. Integrate and Optimize with Your Online Store Interface
All of the above are important pieces in making sure your business is set for accepting online payments, but the best method for online payments is a smooth integration with your online store on both the front and back ends. The customer experience on your website is key in driving sales, and you want to make sure it is flawless. LincSell integrates with payment processors and payment gateways to bring a clean visual look for customers, as well harmony on the backend to deliver an effortless sales experience.
Find out how LincSell can help you accept online payments and grow your business today!
