The revolutionising digital era has opened new avenues for retail transactions, with online payment at the forefront. Let’s take a closer look at this modern payment method…

In today's rapidly changing, technology-driven world, the way we make payments has undergone a remarkable transformation. Discover the wide range of methods for online payments, from scanning a QR code at a local café to accepting payments online through secure payment gateways. This blog explores the different aspects of online payments, shedding light on various methods and providers and their impact on the modern digital-first retail business environment.

How do you accept payments online?

Accepting online payments is indispensable for eCommerce businesses. The growing market for online payments in the UK has opened up different ways of accepting payments online. Some of the popular choices are:

QR code payments

Do you remember the long queues at the checkout point at your favourite supermarket? It would often be a result of cumbersome cash or card payments. Such delays are becoming rare, thanks to QR code payments. You can simply scan a QR code at the counter and be done with your payment with a few taps on your smartphone.

QR code payments have increased in the UK due to the pandemic's hygienic needs and convenience. VibePay and PayPal have pioneered this easy and secure online payment method to simplify daily transactions.

Pay by bank

By leveraging open banking technology, Pay by Bank apps make it feasible for clients to make quick payments straight from their bank accounts. Merchants enjoy the benefits of fast settlement and reduced transaction fees with this secure alternative to conventional card payments. Wonderful is emerging as a key player in the UK pay-by-bank market.

Digital wallets

Digital wallets: Customers can make fast, contactless payments online using platforms such as Apple Pay and Google Pay. By storing card or bank information securely, digital wallets simplify and expedite the payment process.

Payment gateways

Businesses can securely process credit and debit card payments through their websites with the assistance of service providers, such as PayPal and Stripe. The security features of these gateways are robust, and they are simple to integrate with your existing systems.

The role of retail POS systems in online payments

Although online payments are becoming increasingly popular, brick-and-mortar stores are still relevant in the retail landscape. Retail POS systems are particularly beneficial for businesses with both online and offline presence. They provide seamless integration across different retail environments and between multiple stores, thus enhancing the consumer experience. Retail point-of-sale (POS) systems, such as Square and EPOS Now, are more than just cash registers. Apart from facilitating online payments, they provide comprehensive tools that effectively handle sales, inventory, and customer data.

Mobile POS: your on-the-go payment partner

Mobile point-of-sale (mPOS) systems have changed how companies take payments, especially from on-the-fly businesses. With a mPOS system, you can take payments anywhere, at any time, whether you're a food truck, a pop-up shop, or a freelancer.

Players like iZettle and Lightspeed are leading operators in the portable payments market. Usually, all you need is a smartphone or computer with a card reader. They let stores take credit cards, keep track of sales, and even give out digital receipts right away. mPOS systems are a cost-effective way for small businesses to handle payments without having to invest in complicated infrastructure.

Which are the leading online payment providers?

The online payments market in the UK is estimated to close at around $513 billion in 2024. At a projected compound annual growth rate (CAGR) of 9%, it’s scheduled to cross the $724 billion mark by 2028. In this fast-growing digital payments market, new and established operators are vying for the largest share of the pie through innovative, customer-focused solutions over highly secure platforms. We have shortlisted some of the major contributors based on their simplicity, adaptability, security, and features. Let’s explore:

Wonderful

● Open banking solution: Wonderful stands out for its use of open banking technology, which enables businesses to take quick payments directly from their consumers' bank accounts. This minimises transaction fees and expedites payment processing.

● Affordability and social consciousness: By offering a wide suite of services at £9.99 for 1000 transactions, Wonderful has opened the doors for many small businesses to take advantage of a robust online payment system. In addition to this, they provide complimentary services to charitable organisations, leading to a socially aware business environment.

PayPal

● Global reach: PayPal is a globally recognised online payment platform that provides a wide array of services in more than 200 countries and supports 25 currencies. This renders it a perfect choice for organisations that wish to broaden their geographic scope.

● Buyer protection: PayPal's buyer protection feature fosters consumer confidence by ensuring that they are insured in the event of a malfunctioning purchase, thereby decreasing the likelihood of disputes for sellers.

Stripe

● Developer-friendly: Stripe is renowned for its robust API, enabling businesses to tailor their payment procedures and seamlessly incorporate them into their websites or applications, making it highly developer-friendly. Developers favour this software due to its flexibility.

● Extensive solutions: In addition to fundamental payment processing, Stripe provides a comprehensive range of supplementary services, such as recurring billing, fraud prevention, and compatibility with various payment methods, including digital wallets.

Adyen

● International business: Adyen is a company that specialises in assisting businesses in navigating the intricacies of global commerce by providing support for more than 250 payment methods and currencies. It is the preferred provider for large enterprises with international operations.

● Single platform: Adyen provides a unified payment platform that manages all transactions, regardless of whether they occur online, in-store, or on mobile devices, from a single dashboard. This one-stop-shop solution enables businesses an in-depth perspective on their consumer interactions and sales.

Payoneer

● Cross-border payments: Payoneer is a prominent provider of solutions that simplify international transactions for cross-border traders. Freelancers, digital marketplaces, and e-commerce enterprises are key patrons of Payoneer.

● Multi-currency accounts: Payoneer's multi-currency accounts enable businesses to receive and process payments in various currencies, thereby reducing the necessity for multiple bank accounts and simplifying global operations.

Conclusion

The online payments market is fast evolving, with retailers across the globe adopting modern payment methods, such as QR code payments, instant banking, mobile POS-based payments, and retail POS systems that enable multiple payment options. Businesses that stay abreast of the latest developments and build a nimble financial strategy are going to keep ahead of the competition in the years to come.