Table of Contents:
- Overview of Popular Payment Methods
- Pros and Cons of Different Payment Types
- Which Payment Methods Suit Your Business Model?
- Maximising Sales by Offering Diverse Payment Methods
Overview of Popular Payment Methods
Modern businesses need to accept multiple in-store and online payment methods to keep up with customer expectations. Cash is no longer king, as digital and card-based payments dominate. Contactless payments account for well over half of all credit card transactions in the UK, with the numbers for debit card usage even higher.
There are numerous payment methods available, some more common than others. The major forms of payment are:
Cash: Its usage has steadily declined over the last 10 years, yet an estimatedthree3 million people are still reliant on it.
Credit cards: Allow consumers to borrow money for purchases from their card provider, often used for larger transactions.
Debit cards: Link directly to a bank account, transferring funds instantly.
Mobile payments: Consumers can use mobile wallets like Apple Pay or Google Pay for fast, secure payments.
Online payment methods: Include payment gateways for e-commerce and recurring billing.
Alternate payment methods: Cover wire transfers, direct bank payments and cryptocurrency.
Pros and Cons of Different Payment Types
Understanding the benefits and drawbacks of each payment method helps businesses make informed choices.
Cash
Pros: No transaction fees and universally accepted.
Cons: Risk of theft and no automatic record-keeping. Useless for online purchases.
Credit Cards
Pros: Enable larger purchases and offer fraud protection. Customers can pay over time.
Cons: Charge processing fees to merchants. Can encourage overspending.
Debit Cards
Pros: Lower processing fees and funds transfer instantly. Control spending.
Cons: Limited fraud protection compared to credit cards. Cannot spend beyond account balance.
Mobile Payments
Pros: Extremely fast and secure. Popular for contactless transactions.
Cons: Require compatible devices and may not work everywhere.
Online Payment Methods
Pros: Perfect for eCommerce and recurring transactions. Expand customer reach.
Cons: May involve additional setup and transaction fees.
Which Payment Methods Suit Your Business Model?
Small business owners must know which payment methods are available before deciding which methods best suit their business model. Whether you are setting up an eCommerce business with online payment methods or opening a family-run store that accepts card payments, businesses must ensure their customers can pay using a preferred method.
Businesses should choose a reliable bank that offers flexible plans to support growth, and invest in a scalable point-of-sale (POS) solution that accepts all major payment methods
Not all businesses require the same payment methods. Choosing the right ones depends on each business’ customer base and operations.
Retail Shops
Retailers should accept both credit and debit cards, as well as mobile payments, as they provide speed and convenience for both customer and merchant. For instance, our Station Duo streamlines checkouts with dual screens, supporting contactless payments and offering real-time sales insights.
Cafes and Restaurants
Flexibility and speed are key in dynamic environments. Handheld devices, like our Flex, enable quick digital payments at tables or for takeaway orders, reducing customer waiting time.
Service Providers
For professionals that often visit customers, such as electricians or consultants, a compact POS, such as our Mini, is ideal for processing payments on location.
Online Businesses
For eCommerce, digital payment methods, like digital wallets and credit card payments, are paramount. Our integrated POS solutions enable secure processing while managing inventory and tracking sales.
Start-ups
For start-ups, it’s critical to offer secure payment methods without overwhelming costs. Understanding scalable systems and how they work is key to ensuring your customers can pay by card or other preferred payment forms.
Maximising Sales by Offering Diverse Payment Methods
Offering multiple payment methods encourages repeat business. As consumer habits shift, the ability to adapt is vital. Last year, 39% of adults in the UK used cash no more than once a month. Diverse payment methods increase customer loyalty and strengthen a business’ market presence. The right partner will help identify the POS solutions that will work best for each business.. Contact us for additional guidance.
