What Payment Methods dominate eCommerce in the UK?
In the UK the most popular method of payment for online purchases are credit cards. After all, as much as 40% of all online transactions in the UK are paid with credit cards. It is also no surprise that another popular payment method is PayPal, a well-known accompaniment to e-commerce in the business world. Comparatively, as much as 4 out of every 10 online transactions are also facilitated with debit cards. Together, these represent 96% of all online payment methods
Online Business is Big Business
Why would eCommerce be important to us? Well, for one thing, shop owners have taken to the internet to expand their market and provide their products to consumers worldwide. As there exists a constant increase the eCommerce solutions on the web to accommodate this, for this reason so does the payment processing methods. Consequently offering different options between merchant accounts, no merchant accounts with transaction processing only at many various levels of costs according to product choices.
Did you know: 59% of UK’s digital buyers make mobile purchases
eMarketer recently published a UK eCommerce forecast which revealed sales made online via smartphones will be worth about 18.75 billion euros in 2017. In essence accounting for a staggering 46.5% of the country’s total sales.
Payment Gateways available in the UK
To describe and compare all the payment methods together with the details of each service provider’s offerings here would be a mammoth task. Inevitably, each provider has a specific set of tools and options tailored towards a specific market. A recent article on ecommerce-platforms.com highlights some of the details with the pros and cons of a few payment providers mentioned here.
Ultimately, our advice would be to always choose the payment method most suited to your online store. Generally speaking, ecommerce solutions are coupled with payment gateways that work best for them technologically, for example, WooCommerce and PayFast are commonly used with WordPress websites. Other solutions like Stripe offer a complete website setup together with the payment gateway for a complete all-in-one. The choice resides ultimately with the type of ecommerce store and the long-term objectives for your business. And homework can most certainly be done, because PayPal, for instance, is notoriously famous for poor customer care.
Payment Gateway Providers
- Amazon Payments
- Dharma Merchant Services
- First Data
- Flagship Merchant Services
- Pay Pal
A few tips on what to look for in a Payment Gateway
- A number one concern for consumers, ensure the security of your transactions are guaranteed.
- If your payments are down, then so is your store. Ensure your ecommerce service provider is reliable and guarantees maximum uptime.
- Multiple payment options. Choose to accept debit as well as credit cards. Other features such as vouchers may benefit your online store in gaining additional customers as well.
- Accept multiple currencies. Enable multiple currencies to accommodate those abroad. Beware, however, currency exchanges do incur costs, so be sure it’s your market.
- Real-time reports. Ask for the results of transactions and histories so you may make strategic decisions with ease.