It's the 21st century, and we're used to making our purchases from the comfort of home. As customers, it's important to us that paying is secure, which is why it's good to know what payment options actually exist in the world of online stores.
In today's internet-driven world, online stores are becoming increasingly common. Besides the range of products, the payment methods available in an online store are also extremely important. When we buy something from an online store as a customer, we want to be sure the payment methods are secure and our money is in safe hands. In this post, we look at what payment methods online stores offer, what they actually are, and how many payment methods an online store should have. It's important to know all of this both as a customer and as an online store owner.
Online store payment solutions - how many payment solutions are enough?
In today's society, we're used to having options. Is one payment solution enough for a forward-thinking online store? There are certainly online stores with only one payment method that still have customers, but in general, the more different payment methods and options an online store has, the larger its customer base is likely to be. For the customer, it's important to have the flexibility and freedom to pay for their purchase exactly the way they want.
Far from everyone has card payments through major global or local banks; some prefer to use e-wallets or cryptocurrency instead. The latter option is used considerably less, but having it available enriches an online store, since crypto has recently also started being used as a payment method for things like hotels.
Online store payment services: what are the options
Let's take a look at the payment solutions a decent online store usually has, and why they're a good idea.
Bank links – online stores often offer the option to pay via a bank link. It's very convenient, since the process is fast. Bank links are a popular choice at the checkout of Estonian online stores, since the customer logs into their bank using Smart-ID or Mobile-ID and completes the payment. Foreign banks also use various bank links that make paying easier.
Credit card payments – Visa and Mastercard are certainly the best known of these. Larger, reputable online stores usually have card payments available in addition to bank links, letting customers pay quickly and conveniently. If you spot the companies mentioned above at an online store's checkout, you can be confident it's a trustworthy business and your money is most likely in safe hands.
E-wallets – an increasingly popular option for those who want their payments to be secure, or who'd rather not have detailed purchases show up on their account statement. Adding money to an e-wallet is convenient and easy, and payments are processed quickly. The best-known wallets include Skrill and Paysera. An e-wallet is a way to keep your data even more secure.
Buy now, pay later solutions – more and more local and international online stores now offer the option to pay for your purchase later, in instalments. One of the best known to our consumers is ESTO, an Estonian company that offers a wide range of pay later payment solutions. The most popular, for example, is ESTO's 3-part payment method, which lets you pay for your purchase in three equal instalments, with no extra fees at all. You only start paying the following month, and you pay three equal instalments in total. A great option for those who want to keep their spending under control and don't want to pay out a large sum all at once.
Intermediary platforms – for us, the best-known intermediary platform is probably Trustly. It's a trustworthy intermediary company that helps your money reach the right place through your bank, and your statement doesn't show exactly what you paid for. This helps ensure anonymity, if that's what you want.
Cryptocurrency – it must be said that this is a rarer option, but one that's becoming increasingly popular. If you want to pay for a purchase in cryptocurrency, the selection of stores is smaller, but not non-existent.
Making a decision
When there are many payment methods, it can be hard to make a choice. Generally, consumers already have their favorite payment methods worked out. Paying via bank or card is probably the most convenient, since there's no need to transfer money between accounts and no obligation is created. When using buy now, pay later solutions, the credit decision is made in real time and confirming the purchase takes only a couple of minutes - if you have an urgent purchase to make, this solution helps you get the item you need quickly.
In summary, it can be said that all the payment methods listed are secure. Your choice may depend on what product you're buying and how anonymous you want to remain. If you have your own online store and are thinking about which payment methods to offer, we recommend choosing the ones that are easiest to operate. Remember, the more options there are, the more grateful customers you'll have.
The annual percentage rate of charge on an ESTO AS hire purchase is 23.63% per year under the following sample terms: credit amount EUR 1,490, price of the goods/service EUR 1,490, down payment 0%, fixed interest rate 11.90%, contract fee EUR 0, total amount of credit and repayments EUR 1,844.64, assuming the credit is repaid over 24 months in equal monthly instalments of EUR 76.86. Before signing the agreement, read the terms and consult a specialist if needed. The hire purchase is provided and managed by ESTO AS.