Payment Methods on the Internet: Popular Payments in E-Commerce

1. What payment methods are available on the Internet?
2. These are the payment methods you should offer
3. How to integrate the installment purchase payment method into your channels
4. Conclusion: The installment purchase should not be missing in your (online) shop

According to Worldsites Switzerland a study by the British market research institute e-consultancy, onlineshoppers abort approximately half of their ordering processes. Even this number sounds extremely high, but other studies even assume a dropout rate of more than 70 percent. According to Statista the main reasons for online shoppers are high shipping costs and offered payment options.

Online payment methods: Reasons for order process abandonment (Source)

In this article you will learn which payment methods you can use to prevent the abandonment of an ordering process in your online shop and how to best offer them.

What payment methods are available on the Internet?

The most well-known Payments (payment methods) and Mobile Payments are

• Payment service providers (e.g. PayPal and Klarna)
• Purchase on account
• SEPA direct debit procedure
• Credit card
• Advance payment
• Instant transfer
• Company-owned operating systmes (e.g. Amazon Pay and Google Pay)
• Installment purchase
• Financing
• giropay

These are the payment methods you should offer

In order to find out the most important payment methods for you, we will look at two aspects: The most popular payment methods of consumers and the safest payments according to the Federal Office for Information Security (BSI).

Popular payment methods

The EHI has researched the most popular payment methods in online retail. His evaluation shows that online shoppers currently prefer PayPal (29.6 percent), purchase on account (23.8 percent) and the direct debit procedure (20.9 percent).

Popular payment methods in online retail (Source)

The EHI study on Online Payment shows the most common payment methods in direct comparison (2020 to 2022). With a plus of 4.7 percent, PayPal is one of the big winners, closely followed by the direct debit procedure (with a plus of 3 percent). In addition, it is noticeable that customers are increasingly choosing credit card payment, installment purchase or financing and a payment via giropay.

Rise of the payment methods on the Internet (Source: https://www.ehi.org/presse/paypal-beliebteste-zahlungsart-im-onlinehandel/)

These are the most popular payment methods:

• Payment service providers: The payment processing is done by external payment service providers. Online shoppers do not have to pass on sensitive data to merchants.
• Purchase on account: For online shoppers, the purchase on account is particularly safe, because they can thoroughly check the products. They have plenty of time (usually 14 or 30 days) to return the goods or initiate the payment process.
• Direct debit procedure or direct debit: Online shoppers can conveniently store their bank details. The invoice amount is then either debited once or permanently (e.g. for subscriptions) automatically from their account.
• Credit card: When making a purchase, online shoppers usually have to mention the credit card company, number and the security number (CVV). This guarantees the merchants the receipt of payment. Technologies such as 3D-Secure (authentication procedure) are supposed to prevent fraud cases.
• Installment purchase: The great advantage for online shoppers is that they can make large purchases even if their current budget exceeds the total price. They can comfortably pay off the costs for a product or service in installments. By the way: According to this study by TeamBank installment purchase is the third most popular method of payment for online shopping carts of over 500€.
• Company-owned operating systems: With the payment function of an operating system, customers can pay at the cash register in retail or online with the stored bank account (contactless). The payment is confirmed biometrically (e.g. via fingerprint) or by entering a password. As a merchant, you only receive information about the payment, no customer-related payment data.

In addition, there are three other payment methods that the BSI classifies as particularly safe online payment methods:

• Instant transfer: The purchase works with the „normal“ online banking data. The payment is made via bank transfer. There is a risk of a phishing attack if scammers ask for payment data via fake email.
• Advance payment: The processing does not start until payment is received in the case of advance payment. For merchants, prepayment is a safe option. However, it can deter new customers if no basis of trust has been established.
• Cash on delivery: The payment at the door is also still sometimes offered. However, online shoppers now relatively rarely use this method of payment.

How to integrate the installment purchase payment method into your channels

A popular provider for installment purchase is the easyCredit installment purchase. It makes the payment process in e-commerce, business (PoS), in direct sales or a cross-channel solution simple and uniform for customers.

What is the easyCredit installment purchase?

With easyCredit installment purchase, your customers can comfortably – without having to restrict themselves financially – pay in installments. All this without annoying paperwork or long waiting times.

These are the advantages for your customers:

• Lowering of the budget limit: By paying in small installments, they can also afford high-priced products.
• No paperwork: No contract has to be printed out and signed by buyers nor a PostIdent procedure has to be run through (media-free payment).
• Immediate approval: The release and thus the completion of the order or payment process at the checkout takes place within a few seconds. The delivery times for online orders can thus be reduced.
• Interest security: Compared to financing, a uniform interest rate is charged.
• Trust: Thanks to the well-known umbrella brand easyCredit and its affiliation with the Cooperative Financial Group, they can confide their trust in easyCredit installment purchase with a clear conscience.

Who gets an easyCredit installment purchase from TeamBank

All adults with a positive credit check, a permanent residence in Germany and a regular (sufficient) monthly income can pay off with the easyCredit installment purchase financing amounts from 200 to 10,000 Euros over a period of two to 60 months. In comparison to other installment purchase providers, easyCredit does not exclude pensioners. Only self-employed people cannot use this method of payment.

Cross-channel integration of easyCredit installment purchase

You can use easyCredit installment purchase in 3 ways: Online, in the shop and on site with the customers (direct sales). The integration of the easyCredit installment purchase is particularly easy according to the plug-and-play principle.

Option 1: Integration in e-commerce

You want to offer the easyCredit installment purchase payment method in your online shop? Then select the desired plugin in the Shop system plugin search and register in the partner portal. You will receive your contract documents and can integrate the easyCredit installment purchase via plugin, PSP (Payment Service Provider) or API (Application Programming Interface). In the partner portal, you will find widgets, a banner configurator and tips on how to market the easyCredit installment purchase.

Option 2: Integration in the store

You would like to offer the easyCredit installment purchase payment method in your store? All you need is a PC, an Internet connection and a printer. Register in the partner portal. Afterwards, you will receive your contract documents and an individual link. As soon as the system is activated, you will receive a advertising package. In the partner portal, you will find further advertising material and tips on marketing the easyCredit installment purchase.

Option 3: Integration in direct sales

You create individual offers during field service operations and would like to offer the easyCredit installment purchase payment method on site? All you need is a mobile terminal (e.g. smartphone or tablet) and an Internet connection. Register in the partner portal. Afterwards, you will receive your contract documents and an individual link. All you have to do now is to copy the link into your offers. Your customers can use this link to calculate rates and complete the installment payment. You can find templates for this in the partner portal.

Developer Portal

If you prefer own integration you can use the Developer Portal.

• Documentation Payment API v3: This is the individual integration of the easyCredit installment purchase as a payment method in your system.
• Documentation Transaction API v3: With this, you can call up completed easyCredit installment purchases and carry out transactions without logging in to the partner portal.

Customer opinions

According to a merchant survey the easyCredit installment purchase distinguishes itself mainly through its service as a professional problem solver. Of the surveyed merchants,

• 99 percent praise the service and describe TeamBank with the easyCredit installment purchase as a reliable partner.
• 99 percent protect customer data during the purchase process.
• 98 percent the simplicity, the comfort and the transparency (no hidden costs) from the point of view of customers.
• 96 percent the continuous further development of the installment purchase solution.
• 92 percent improve customer acquisition (in comparison: For competitive products, only 74 percent confirmed this).
• 86 percent the increase in the average shopping cart.
• 82 percent increase in turnover.
• 77 percent the simple integration in their sales processes.

Conclusion: The installment purchase should not be missing in your (online) shop

The many advantages of the installment purchase convince more and more people. The installment payment should therefore not be missing in a good payment mix. When choosing a provider, pay attention to simplicity and comfort for you and your customers. The OMR Community is definitely thrilled with the easyCredit installment purchase and we can only recommend you to sneak a peek in the free demo shop. You can find the access data online without registration. What are you waiting for? Have fun testing!