2020 was a year that turned every industry on its head. With the pandemic disrupting how businesses operate and how consumers acquire goods and services, companies have started to get very creative in conducting their business. Because of the virus being extremely contagious and quickly becoming widespread, in-person shopping and payments had to be changed into much safer methods. Let’s take a look at various payment methods that will enhance online businesses in 2021.
Traditional Payment Cards
For decades, credit and debit cards remained the number one preferred non-cash payment method for customers. What’s good about these is that they are prevalent globally, so they are accepted at almost every establishment as a good way to pay. Also, many customers use cards connected to their bank accounts, so it provides them with a sense of security. The downside is that bank cards tend to be prone to fraud and hacking, which is costly for both the merchants and the consumers. Also, chargebacks occur often, which leaves the merchant in a terrible position and without the funds they accepted.
BigTech
BigTech companies provide billions of people worldwide with an account that reduces payment friction and welcomes familiarity. Users can make easy payments from a user account that they interact with daily. Unfortunately, BigTech companies are not currently very interested in modifying payments to reflect modern trends. They hope to generate financial data from users and, in turn, power various business verticals. Online businesses generally feel that this service mainly prioritizes customer convenience and does nothing helpful to the companies themselves.
E-Wallets
E-wallets are becoming increasingly popular because they provide UX-driven tech solutions. It is one of the fastest-growing payment methods, especially among Millenials and Gen-Z. Popular e-wallet brands include Paypal, Cash App, Venmo, and more. They are favored because it is a very secure and easy way to spend money online for both the business and the consumer. Payments and disputes can be settled very quickly and without much effort in e-wallets, and they generate a copious amount of transaction data. One of the major cons of e-wallets is high fees that can be off-putting to online vendors.
