What payment methods exist?

Today’s digital evolution has driven significant changes in how we communicate, work and shop. Digitalization has opened up new options, letting us access services without cards or bank accounts. Not long ago, you could pay almost only in cash — maybe by check. Now there are so many ways to pay that it’s best to list as many as possible. And we’re sure we’ll soon see options we can’t even imagine today.

Platforms like SeQura, PayPal, Apple Pay and Google Pay have played a crucial role in this transformation. These digital payment solutions have simplified transactions, gradually gaining ground over traditional payment methods. With their convenience and security, they’re revolutionizing the way we pay for goods and services.

What are payment methods?

Payment methods are tools or instruments that facilitate commercial transactions, enabling people or companies to exchange goods and services for an agreed value. These means enable the transfer of funds or the settlement of debts between the different parties involved in a transaction.

They’re fundamental to modern commerce and economic activity, providing options and conveniences for fast, secure transactions. Let’s now look at the current options from the oldest to the most modern.

In-person payment forms and methods

Despite the boom in online commerce, many consumers still prefer to go to a physical store to make purchases. This way, they see the product they’re interested in with their own eyes, ask sales staff about its features and pay on site. For this type of commercial relationship, there are various ways to pay.

Cash

This is the traditional payment method. The bills and coins we’ve always used, regulated by public authorities and each with a set value. Until recently, most buyers used this method. Even though it remains very important, more and more users are opting for other options.

Credit or debit card

The usual cards banks offer their customers. They can be credit (used to finance a purchase immediately — the bank charges it later) or debit (requires funds in the account, as the full amount is charged at the moment of purchase). In recent years, contactless has become widespread for card use. It lets you pay without inserting the card into the terminal — just by tapping and entering the PIN if the device asks for it.

Card payment solutions offer a number of advantages for both customers and merchants. For customers, convenience, speed and security stand out. For merchants, faster transactions, less cash on hand and greater security.

Bank check

‍One of the longest-standing payment methods. It’s a financial document used by a company or an individual to pay another party. It shows the agreed amount — preferably written out — the account number funds will be drawn from and the payee of the transaction.

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Mobile or NFC payments

One of the fastest-growing payment methods in recent years. The smartphone has become an extension of ourselves and it also serves to pay. In this case, it connects to the bank and allows payment of the agreed amount simply by tapping the phone on the terminal. A variation of mobile payment is paying with a smartwatch. By holding the smart watch near the terminal, the transaction is completed.

In-store deferred purchase

Companies like SeQura make it possible, in physical stores that use their payment method, to buy a product and pay in installments. The process is extremely simple. You scan the selected products with your phone, choose the payment installments, provide the requested personal details, enter your credit card number and show the cashier the code SeQura provides. That’s how simple it is.

Promissory notes

In this case, it’s more common in transactions between companies than with individuals. It consists of issuing a promise to pay, which must state the amount of the payment, the place where it will be made and the due date.

Online payment methods

Over the course of 2020, users in Spain who purchased products and services online spent an average of around €2,100. Given that the percentage of online shoppers keeps growing, it’s no surprise that digital payment methods have multiplied and been refined in recent years. The goal is clear: make it easier for consumers when it’s time to pay online.

PayPal

One of the best-known online payment platforms. It allows you to make transfers, pay or receive money. It’s linked to a bank account and from there you can carry out the transactions you want.

Apps

Apps have become one of the most common payment-method approaches. In many cases they’re used to pay or receive money from people we know. They run on our smartphones and let us purchase products or services from eCommerce sites quickly and easily.

Online debit or credit cards

These require the existence of a payment gateway that acts as an intermediary between the buyer and the seller. The user just needs to enter their account/card details and follow a few steps indicated during the transaction to complete the purchase.

Paying with a mobile number

The online store requests the mobile number of the person who will make the purchase. After a few security steps, the charge for the purchase will appear on the next month’s phone bill following the transaction.

Paying with virtual currencies

The best known is Bitcoin, but there are many more. Cryptocurrencies are becoming one of the most widespread ways to pay and more and more online stores allow payment with them. Although, today, usage is not standardized among users and only a small percentage of the population uses this payment method.

Payment methods for a company

Offering installments or Buy Now, Pay Later (BNPL) can be one of the best payment options for a company for many reasons, such as increasing conversions because it can reduce the barrier to entry and increase conversions in an online store. By allowing customers to split the cost of a purchase into installments, they’re more likely to feel comfortable and willing to complete the transaction.

On the other hand, by offering installment options, customers can afford to buy higher-value products or services. This can result in an increase in average order value, directly benefiting eCommerce revenue, as well as attracting new customers and retaining existing ones.

In addition, BNPL has become increasingly popular and expected by consumers in the field of eCommerce. Companies that do not offer this option may lose sales opportunities to the competition. To remain competitive in today’s market, it’s important to adapt to customer preferences and offer flexible payment options.

SeQura: a digital, online payment method adapted to business

SeQura is, today, one of the payment methods — both online and offline — that makes it easiest for users to pay for their purchases. It has different payment methods, each with its own specific features:

Pay later

Payment flexibility is increasingly important for online consumers’ trust. SeQura includes this payment method that allows you to pay for the purchase only when you have it in your hands and have verified that it delivers what you were looking for when you decided to make it. Up to a total of 7 days available to pay for your purchases without any problem

Installments

Allows the time frame and installment to be adapted to the consumer’s situation. With SeQura you can choose the installment amount that suits you best and the months when it’s most convenient for you to be charged for your purchase.

Split in 3

Another of the payment methods included in SeQura’s solution. In this case, the user can pay the total price of their purchase in three split installments. This allows, if you need to buy something in a month when the budget is tight, the pressure on your finances to be spread out.

As you can see, consumers play a very important role in all sales strategies. That is why merchants — and, in general, the system — are built around them. In this way, the aim is always to improve users’ experience when buying, as well as to give them the greatest possible ease throughout the entire purchase process, which undoubtedly includes the moment of paying for goods or services.

If you’re interested in knowing more about SeQura, whether to incorporate its payment methods in your eCommerce, or if you’re looking for stores where you can defer payment for your purchases… you just have to take a look at our website! There you’ll find everything you’re looking for and you can contact us with any questions that may arise.