What Payment Options Are Right for Your eCommerce Site?

When it comes to eCommerce payment methods, is the more the merrier? With such a tech-driven world it is important to keep up with their demands and offer a variety of unique payment options. However, there are different aspects to consider when choosing eCommerce payment options for your business. 

While it is true that visitors are likely to abandon their carts if their preferred payment method isn’t available, offering (too many) payment options can also come with a downside. Many times it can also become costly, time-sucking, and in some cases more difficult to get volume pricing. Take time to consider your ideal target market along with security and fraud prevention efforts when choosing what payment options are best suited for your site. 

Popular eCommerce Payment Options

Bottom line, offering multiple payment methods to reflect your customers’ demands is critical to maintain a competitive edge, but be smart about which ones you bring on. Below are considerations for several of the top payment methods going into 2023.

Buy Now, Pay Later

Online financing known as “buy now pay later” (BNPL) is continually gaining popularity. Adding a BNPL payment provider like PayPal Credit can increase online sales and order sizes because eCommerce financing gives customers the opportunity to shop now without having to have the funds on hand. 

Using BNPL is excellent for online stores that frequently have high ticket items or those heavily leveraging promotions because they may be able to sell more inventory due to the simple financing options. With the interest-free, payment installations or paying a fee at a later date with usually no interest rate Gen Z and Millennials especially take to these payment options. In fact, management consultancy Kearney has suggested that 67% of UK millennials have used BNPL options, showing its growing prominence within eCommerce.

Considerations of BNPL

While BNPL appeals to customers and can definitely get users to finalize their purchases, brands should take into consideration some major factors before deciding if it makes sense to add this payment option.

High Transaction Fees

Merchants are usually required to pay the provider a fixed fee on every transaction on top of a commission percentage of the transaction value. This can quickly add up and cut into the bottom line. Consider how many new customers you will be adding with BNPL and also how many already purchasing customers might switch to this method, but still purchase with another payment option (without the fees) regardless.


BNPL gives people more money to play with which means they are more likely to purchase more than they intend to keep- this is especially true in fashion. It is important to make sure you have a sound return policy and methods to reduce returns fraud because it becomes a larger issue when offering these payment options. 


Is this payment method really bringing more to your bottom line? BNPL might not make sense for your eCommerce site. Keep in mind fixed fees and commissions the BNPL is charging and decide if that reduced profit is still a value to the company. 

A recent study forecasted significant growth in BNPL between 2021 and 2025 with a total share of total eCommerce transaction value of over 5% by 2025.

Major BNPL Options: Klarna, Afterpay, Affirm, LayBuy and Paypal Credit


Mobile Wallet

Post pandemic the use of mobile wallets has quickly become a mainstream payment method. This payment method is similar to carrying a wallet of credit cards or cash, but the difference is that it's virtual. Users of mobile wallets have their payment details saved securely on the cloud in a single place. In some cases referred to as e-wallets or in digital wallets, mobile wallets give customers secure options to conveniently purchase online.

Mobile wallet empowers a digital first strategy. Forecasted to grow by 18.9% year-over-year through 2028 and by 2025 mobile wallet use will account for just over half (52.5%) of eCommerce transaction value worldwide, versus 48.6% in 2021, according to the FIS Global Payments Report.

Considerations of Mobile Wallet

The motivations for mobile wallets in eCommerce are many. For both customers and companies alike, this payment method is very appealing. Consider the following to see if it makes sense to add this option to your online checkout experience.

Heightened Security

At a time when sites seem plagued by hackers stealing credit card information, mobile wallets bring heightened security. Using tokenization technology that randomly generates an identifier to replace the card number for each transaction they provide a more secure online payment method compared to debit or credit card payments. 

As shoppers become increasingly aware of and unforgiving of fraud, mobile wallets can bring the peace of mind they and your company is looking for. 

Convenience Check-Out

Having to get a physical card and punch in the data is enough to often cause cart abandonment with online purchases. Accepting mobile wallet creates a simplified, seamless checkout experience that has been shown to increase conversions. According to Baymard, e-commerce sites can gain a 35.26% increase in conversion rates through better checkout design.

Complex Chargebacks

Accepting digital wallet payments can increase conversions by simplifying checkout, but this payment method may complicate chargeback mitigation efforts by businesses when fraud occurs. To get the most value from digital wallets while minimizing the potential downside, businesses must understand why customers want wallet options – and they must create a fraud prevention strategy that addresses digital wallets’ unique fraud-risk profile.

Improved Customer Relationships

Using information about the customer’s past purchases, provide them regularly with useful tips and suggest lists of subsequent targeted purchases. Offer customers personalized bonuses and discounts on products that they really need. Capture the time when the customer enters your store and do not miss the moment to contact them through the mobile application and to make the best offer .

Major Mobile Wallet Options: Apple, Amazon, Google, Paypal, and Samsung Pay


Crypto Wallet

Cryptocurrency will only continue to grow in relevance and value. It is important for eCommerce businesses to be aware of this payment method as it has exploded in popularity over the past decade. In 2016, there were 5 million identity-verified crypto asset users in the world and as of June 2021 a staggering 221 million

Cryptocurrency is a digital or virtual payment system that is secured by cryptography. The currency exists on a digital public ledger called a blockchain, which is a record of every transaction the currency holder has updated or owned. This is a peer-to-peer ecosystem created outside of traditional financial institutions meaning it bypasses banks to verify payments, placing the responsibility in the users hands. Most units of the cryptocurrency are created through a process called cryptocurrency mining where users generate the currency and store them in the crypto wallet (or payment processor).

Major online retailers such as Microsoft, Home Depot, Whole Foods and Tesla have announced that they are accepting cryptocurrencies within their online stores. For companies wanting to stay competitive in the shifting financial landscape, it is important to understand and consider crypto wallets because it may not be too long before they’re embedded in every market.

Considerations of Crypto Wallet

While cryptocurrency is often referred to as the currency of the future, what we’re seeing is that it's also a viable currency for the present. Consider the following factors as your company decides if this payment method makes sense for your eCommerce business.

Appeal to a Larger Market

The option to pay with Crypto Wallet can attract a whole new segment of customers. Using cryptocurrency as a payment method brings a group of highly educated, tech-savvy customers your way. This community of individuals has already been identified within the cryptocurrency market that spans worldwide.

Lower Transaction Fees

Compared to other payment methods where transaction fees can range from 3-6%, cryptocurrency transactions provide a lower transaction fee. Oftentimes they typically don’t have a fee at all, and if they do expect it to be around 1%. This can quickly add up to make a difference to the bottom line. 

Reduce Fraud and Chargebacks

That same blockchain technology also allows for reduced fraudulent activity. By money exchanging hands immediately it can not be taken back or refunded which drastically decreases fraudulent chargebacks and returns. 

Higher Security

As mentioned above, it is extremely difficult to reverse a transaction without consent between both parties. This security allows the eCommerce business and its customers peace of mind because with the middle-man (i.e. bank), there is minimal chance of funds being taken from accounts without permission.

Anonymous Purchasing

Because crypto wallets use encrypted addresses this allows for purchases to be made anonymously. This means the shopper can make the purchase without having to disclose any of their personal information. While in some cases this can be viewed as a pro, in some cases it can be seen as a con. In the small case of a fraudulent charge, the customer is typically out of luck because it is impossible to trace the activity back and no built-in protection exists like a traditional credit card.


With the price of crypto not being backed by any official fiat currency, price volatility is a real issue with accepting crypto wallet. In some cases prices may soar, but the following week can drastically decline.

Major Crypto Wallet Options: Metamask, Coinbase, Trust, and Crypto.com

Choosing the right payment methods for your eCommerce Site

Completing the purchase should be the easiest part of your customer’s journey. By having a variety of payment options it can not only broaden your potential customer base, but improve overall conversion rates by making the purchase as fast and straightforward as possible.

Echidna partners with our clients to help them in all areas of eCommerce. If your team needs expertise in navigating and implementing online payment methods contact us today to start a conversation.

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