Different Types of E-commerce payment systems | Worldline India (2024)

In the digital age, it is important to ensure that your business enables fast and easy-to-checkout payment systems so that your customers have a hassle-free shopping experience. E-commerce payment systems provide your customers with a vast array of options to choose from, making their payment experience better and giving them the liberty to choose their preferred payment mode.

So, when you are setting up an E-commerce business, it is important that you have a thorough understanding of E-commerce payment systems and all the available options.

What is an E-commerce Payment System?

An e-commerce or electronic payment system enables transactions over an electronic mode of payment without the involvement of physical money or cheques at the time oftransaction. Electronic payment techniques are used by e-commerce enterprisesto collect payment for their products and services. The procedure of conductingbusiness online has been dramatically changed by the e-commerce payment systemswhich have made it simple for both businesses and customers.

Apayment gateway is used to link a virtual storefront to the payment processingnetwork of your choosing in an online payment system. A robust payment gatewayprovides multiple secure e-commerce payment options – as listed below – to yourcustomers. To clear your funds, this processing network also collaborates withyour bank.

A List of E-commercePayment Systems

1. Debit Card
   

   A debit card is a cardwith unique credentials and is linked to the customer’s bank account. A debitcard deducts money from the user's bank account instantly at the time of the transaction– which is the main distinction between a debit card and a credit card.

2. Credit Cards
   

   Credit cards are the mostpopular form of payment for e-commerce transactions. Enabling credit cardpayments on your website can enable customers to shop without having to worryabout paying upfront.

   See Also

   Your guide to NFC technology and cardless withdrawals

3. E-Wallet
   

   The E-Wallet can bethought of as a prepaid account that enables users to store a variety of debitcards, credit cards, and other payment methods in a safe environment withouthaving to enter their credentials each time they wish to make a purchase. Theuse of electronic wallets is expanding every day. E-wallets enable customers toskip entering card information each time, thus promoting a rapid checkout. PhonePe,PayTM, Mobikwik, Amazon Pay, etc are some of the well-known digital or E-walletsin India.

4. Smart Card
   

   In terms of appearance,debit/credit cards and smart cards are somewhat comparable. Smart cards,however, contain an embedded microprocessor chip. It has the ability to storemoney as well as a person's personal and professional information. Fasterprocessing is possible with smart cards at lower rates.

5. Online banking
   

   Customers canconveniently make purchases by paying with a bank account directly. The userdoes not need a debit card to use this e-commerce payment system, but theystill need to register with their bank for a net banking facility. The customeronly needs to provide their net banking ID and PIN in order to complete apurchase.

6. Mobile Payment
   

   Customers mayeasily and quickly use mobile payment to make purchases using theirsmartphones. A user only needs to download a mobile payment app from the applicationsstore. They must then link their bank account to that app in order to add moneyto their wallet and make purchases, as well as to make payments directly fromtheir bank account.

   When aconsumer chooses to use that app to pay on an e-commerce website, the appreceives a payment request, which it must approve before the payment can beprocessed.

Conclusion

When it comes to paymentgateways for E-commerce websites, there’s a plethora of them out there tochoose from. A business must figure out which ones can be the most beneficial paymentgateways and integrate them. It is also wise to give customers multiple optionsas it helps enhance and further personalise their shopping experience.