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Different Types Of Online Payment Methods

As the online business is booming, the demand for online payment options is also on the rise. This has lead to online stores accepting various types of online payment options. Earlier, the online payments were very much restricted to credit card payments.


However, with the increase in the usage of debit cards for purchases, online stores and businesses are now accepting debit card payments. The option to transfer funds to the merchant through net banking option of your bank account is also available. This option allows you to make transactions without having to provide details of your debit card. Net banking is now a very viable payment option when transacting with a merchant in the same country.

The latest online payment option introduced is mobile money or mobile payment. This option of using mobile money is slowly gathering popularity, especially in countries that have high mobile user density. The usage of cash cards is another option that people tend to use while making payments online. Using electronic checks or e-checks are also an option that some merchants accept nowadays. As the online business options are increasing, so are the payment options that are available to you.

Credit and Debit card payments

  • Using credit and debit cards is still the most popular choice amongst people for making online payments.
  • Various security features have been incorporated to make credit and debit card transactions safe. This is a considered by many to be the primary reason for the popularity of credit and debit card payments.
  • Many choices are available when you transact with credit cards online. For example, you have the option of paying the amount as EMIs to reduce the stress on your monthly budget.
  • Most of the online merchants accept credit cards as a payment option. Increasingly, merchants are also accepting debit card payments.
  • People prefer credit and debit cards, as they feel safe while using these payment options.
  • Credit card companies have introduced many new security features, and this has helped increase the popularity of credit and debit cards.


PayPal is one of the most popular online payment methods in Europe and America. Many merchants and customers have PayPal accounts in these countries. There are a few advantages that customers have while using PayPal accounts for payment. A PayPal account can be linked with the bank account or a credit card. This gives the customer the opportunity to transfer only the required funds into the account before you make your purchase. The popularity of these accounts grew, as there is a sense of security that people experienced when using these accounts. As people could have only the required amount needed for the transaction, the amount of money that would be lost during any malpractice will be minimal. PayPal merchant accounts give merchants the option to accept credit and debit card payments along with PayPal payments. This gives merchants a lot more flexibility and therefore is a preferred option while setting up merchant accounts.

Net banking and wire transfer

Wire transfer is ideal if you are going to transfer large sums of money.  The transfer done using wire transfer is almost immediate. However, the fee that is charged in wire transfers is on the higher side and therefore is not ideal for small businesses. For smaller amounts, using net banking to transfer the funds is a good option. These online payment methods are gaining popularity quickly among customers. Banks have introduced many security features for net banking and this has enhanced the security of these payments. Net banking is an online payment option that is now widely accepted by merchants, especially in developing countries. The transfer of funds is done within the same working day and intimations are sent both to the customer and the merchant when the transaction is complete.

Matthew Anton is a business analyst who helps businesses in setting up online stores to expand clientele and profit using merchant account.

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