One way to succeed as a retailer is by offering your customer base's preferred payment methods.
It’s common to accept cash and credit card payments But if those are the only payment options you accept, you could be turning away new customers and missing out on opportunities to deepen relationships with existing ones.
By understanding the benefits of the many payment options available, you can decide which makes sense for your store and your customers. Then, with the help of a flexible retail point-of-sale (POS) system, you can begin accepting most payment options with ease, creating better customer experiences and nurturing repeat business.
Types of retail payment options
According to a report by Adobe and PYMNTS Intelligence, 70% of customers consider the availability of their preferred payment method very or extremely influential when choosing which store to purchase from. They increasingly expect easy access to their preferred payment method at checkout and may abandon their cart if their preferred payment method is unavailable.
That’s a lot of avoidable revenue left unrealized simply because you don’t accept certain payment methods.
In other words, the best option for retailers is to accept as many payment methods as possible. Let’s look at all types of payment options:
1. Cash
Cash is, of course, the most basic payment method you can accept. Cash also doesn’t require you to research payment processors or worry about fees.
The pandemic shifted payment behavior slightly with global declines in cash transactions. McKinsey reported that this decline will continue unevenly at 4% per year in different regions. In developing markets with low card penetration, instant payments are quickly replacing cash, while in card-dominated markets like the US, cash usage will gradually decrease due to the lasting impact of the pandemic.
While there are some intricacies to handling and accounting for cash transactions, there are very few downsides to letting your customers pay with cash. On the flip side, there are quite a few benefits for both you and your customers:
- Cash is easy and convenient: This is especially true for those customers who prefer and carry it regularly (particularly important if you offer cash on delivery options).
- Speed: When customers pay with cash, their payment is in your hands (albeit not your bank account) immediately.
- No transaction fees: When you accept cash payments, you keep more of the actual money, because you don’t have to carve out payment processing and other fees that credit cards and other payment types usually incur.
In short, accepting cash payments is still expected as table stakes in retail, and there are almost no drawbacks to it.
2. Checks and e-checks
Next to cash, paper checks would be the most direct form of payment. Like cash, this form also doesn’t require you to research payment processors or merchant fees.
Similar to the cash trend, check usage has been declining. Data from the Federal Reserve’s annual Diary of Consumer Payment Choice report shows consumers used checks for only 3% of payments in 2023. Retailers like Target, Whole Foods, and Old Navy stopped accepting checks, citing “extremely low volumes” of customers who still use them, proving this form of payment is nearing obsolescence.
However, three-quarters of retirement-age Americans (consumers 65 and older) still have a preference for writing paper checks. So even though accepting paper checks for your business may seem outdated, there are still a few benefits to keeping it as an option:
- No transaction fees: When you accept a paper check, you don’t have to worry about most merchant or payment processing fees, so you’re able to keep most, if not all, of the payment.
- People tend to use checks for larger purchases: On average, check payments tend to have a higher value amount (around $300 versus other forms of payment at $87).
An e-check is a digital version of a paper check. E-checks use the Automated Clearing House (ACH) to take money out of a customer’s checking account and deposit it directly into the merchant bank’s business account. E-checks act more like direct bank funds transfers, so there will be a fee when using e-checks. But they are amongst the lowest fees of any payment options because there are no credit card interchange fees for e-check acceptance.
Unlike paper checks, electronic check (e-check) payments held steady at 56%. According to a recent PaymentsJournal podcast, ACH payment volume increased by more than 6% year-over-year in Q2 2024, with an average daily payment volume reaching 132 million payments, while the total value of payments flowing through the ACH Network topped $42 trillion in just the first half of the year.
This is most likely due to the marked increase in ecommerce sales. People are moving from paper checks to e-checks, so even though there is a slight fee involved with using e-checks as a payment system, there are benefits to providing it as an option for your customers:
- Fewer limits on transaction amounts: Bank-to-bank transfers of funds have little to no limits in terms of amounts. So you don’t have to worry about your customers’ credit limits or about them reaching their debit card limit.
- Lower fees: Compared to credit cards and debit cards, the fees for accepting e-checks are usually significantly lower than other electronic payment services.
Paper checks and e-checks are retail payment solutions that require little to no fees to accept in your business. Accepting them as a payment option will only increase your business without costing you very much at all.
3. Credit cards and debit cards
Credit and debit (bank-issued) cards have been around for a while, but their use is far from plateauing. In fact, the Federal Reserve’s report shows increased card use resulted in more than 60% of payments being made with debit dominating in-store shopping while credit owns online.
In part because of numbers like that, accepting credit/debit cards has become the norm. It’s the bare minimum retailers need to do to keep pace with consumers and competitors.
That’s actually good news for consumers and retailers alike, because there are a lot of pros to credit and debit card payments. A study from the University of Adelaide and University of Melbourne in Australia found that cashless payments, like credit cards, are making consumers spend more, versus cash. That’s something the Girls Scouts of America learned when it quadrupled annual cookie sales over the prior year simply by implementing mobile credit card swipers.
In addition, credit and bank cards:
- Lend stores some authenticity. Accepting credit cards (specifically Visa, Mastercard, Discover, and American Express) is so common that stores without the ability to accept card payments may be seen as being “behind the times.”
- Increase sales overall. With more and more consumers forgoing cash entirely, allowing credit card payments means you can avoid losing out on sales when customers just don’t carry cash.
- Have cash flow benefits. Credit card payments, unlike cash, are often deposited into your bank account automatically. While the exact timing can vary from one payment processor to another, you can typically expect the money to hit your account soon after a sale is completed.
The one caveat to all of those benefits? Fees. Processing credit cards means you’ll have to accept the associated transaction fees that payment processors charge. While these fees can vary, they average between 1.5% and 3.5% of the total sale.
4. Wallet payments
There’s another payment method experiencing rapid growth over the past few years: mobile and smartphone payments, also known as contactless payments. These include common smartphone payment options like Apple Pay, Google Pay, and Samsung Pay.
According to af orecast by Juniper Research, total contactless payment transactions are expected to reach $15 trillion globally by 2029. In 2023, more than half US smartphone users used contactless payment at least once. And the use of mobile payment apps like Apple Pay and Google Pay is expected to be the fastest growing payment method worldwide. There are a lot of reasons for this growing interest, chief among them: mobile payments are faster, easier, and more convenient for consumers who typically have their phones out anyway.
In addition, there are some choice benefits for retailers who accept mobile and smartphone payments, too:
- Customer convenience. As mentioned, it’s easier and faster for customers to pay you this way.
- Cash flow. Mobile payments, similar to credit and debit cards, typically hit your bank account less than three days after the sale.
- Data availability. When customers pay with their smartphones, you can potentially receive and track customer data, including how frequently they shop with you and how much they spend, and you can engage with customers throughout the in-store journey (by sending location-based updates on sales, discounts, and more).
5. Gift cards and store credit
Gift cards and store credit are one payment method you may not hear about very often, but they’re one of a retailer’s most powerful tools in building long-term loyal customer relationships. In a nutshell, store credit enables retailers to deepen and continue existing customer relationships, while gift cards help introduce new people to your store in a low-risk way.
Gift cards, store credit, and discounts are all levers you can pull to create better customer retention and loyalty. Plus, there are several other key benefits for retailers:
- For one, gift cards and store credit encourage customers to spend more because they’re likely to spend more than the gift card or credit is worth. Plus, customers feel more comfortable spending more money with your store when they know you offer a great return policy—it’s like a safety net.
- When it comes to returns and exchanges, issuing gift cards or store credit in lieu of refunds enables you to be more flexible and creative. For example, marketer Kaleigh Moore shared an interesting experience she had with a retail return: A company offered to credit her 120% of the original purchase price if she opted for store credit over a cash refund.
Store credit and gift cards enable you to keep money in your ecosystem. Even if the gift card never gets spent or an item gets returned/exchanged, that sale stays with your business.
📚 Read: What Is Store Credit? How To Use It To Sell More (2024)
6. Custom payments
As we mentioned before, a good POS system offers you the flexibility to accept as many payment methods as you and your customers need. That includes custom payments such as:
- Split payments. The classic example here is when a group wants to split their restaurant bill among multiple credit cards. In a retail environment, this may look like two shoppers jointly purchasing a gift with two credit/debit cards.
- Split tender. For flexibility, shoppers may prefer to pay for part of their order in cash and put the rest on a credit card.
- Partial payments. For some retailers, it makes sense to accept a partial payment upfront and offer credit or payment plans (like layaway) to collect the rest. Alternatively, retailers can accept an initial payment in-store and have the customer pay the rest of the bill online, which can increase the average order size.
- Zero payments or IOU. Similarly, some retailers may offer layaway or other payment plans without any upfront payment. Your POS needs to be able to account for these transactions.
The chief benefit of customer payments like those above is that they enable retailers to be more flexible, often to the benefit of both the store and the customer.
For some brick-and-mortar retailers, custom payments like split payments and split tender are a necessity in order to cater to customer preferences and keep up with competitors. However, split payments between multiple credit cards may mean that your store incurs higher credit card processing fees, so it’s important that you take the costs of offering these custom payment options into consideration.
7. Cryptocurrency
Cryptocurrency is a digital currency protected by cryptography, which is a secure communication technique that transmits information with encrypted contents. It’s nearly impossible to counterfeit because it exists on a decentralized network called a blockchain. It cannot be manipulated by any government or organization.
Cryptocurrencies are being adopted more and more. By 2025, the number of users in the cryptocurrencies market is expected to reach 861 million. Now, even retail businesses like Whole Foods and Home Depot are accepting cryptocurrencies for payment.
Though crypto is a newer type of payment option, there are benefits to adopting it:
- More secure than credit cards. In 2024, the FTC reported 841,988 credit card and identity theft reports were filed in the first three quarters. With cryptocurrencies, there’s no need to worry about data breaches or identity theft because your customer’s information isn’t stored in any centralized place. It’s all stored only on their crypto wallet.
- Lower fees and no international fees. Cryptocurrency exchanges offer fees that are lower than most other merchant fees. For example, PayPal charges close to 4% per transaction, while some bitcoin exchanges offer fees of less than 1%. Also, cryptocurrencies don’t have international currency payment fees since they aren’t tied to any one country.
- Refunds are entirely in the business’s hands. Cryptocurrency transactions can only be refunded by the party receiving the funds. Customers cannot cancel the payment on their end or change their credit card number, so it’s easier for a business to keep track of its cash flow.
2024 saw an increase in crypto ownership rates with 40% of American adults owning crypto, up from 30% in 2023, and around 63% hoping to buy more over the next year. Thirty-four percent of cryptocurrency owners are aged 24 to 35, the largest share among all age groups.
These are the people who are going to be your customers going forward. Part of creating a successful and lasting business is staying ahead of the curve. Offering a retail payment solution, like cryptocurrency, that will cater to future customer needs is part of that equation.
8. Buy now, pay later
Buy now, pay later (BNPL) is a payment method that allows consumers to purchase goods and pay in installments.
BNPL is a rapidly growing payment method because it offers new financing options and it’s typically interest-free. Research by Harvard Business Review shows BNPL drives a 17% to 26% increase in purchase likelihood among consumers who adopt it and 10% larger basket sizes. These increases also persist for close to six months, showing that BNPL drives lasting gains rather than short-term consumer spending spikes.
Consumers are also leaning less on credit cards and more on BNPL because:
- It elevates shoppers purchasing power, as they get to purchase what they want from their favorite brands.
- BNPL purchases feel less financially constrained, as it breaks down payments into installments, allowing them to maximize their budgets and increase their purchasing power.
- Many BNPL platforms offer zero interest than credit cards, which charge interest and fees.
- Consumers can purchase responsibly and avoid long-term debt traps.
- It eliminates concerns about data breaches, incurring debt, spending limits, and managing large monthly payments.
- Some BNPL platforms may help users build their credit history over time.
For retailers like Frank And Oak, BNPL generates more sales by offering customers more payment flexibility. After implementing BNPL through Klarna alongside its buy online, pick up in store service, Frank And Oak could provide a more personalized shopping experience and grow revenue.
Shopify integrates Shop Pay in online stores and Shopify POS systems, so you can allow customers to pay in full at checkout or pay for an order over time. Offering BNPL options will encourage your customers to buy more big-ticket items, since they’ll be able to spread their payments out over time. For example, Shop Pay Installments allows your customers to split a purchase up into four equal payments with 0% interest, and it will have no impact on their credit scores.
9. Loyalty points
Loyalty points or rewards systems allow customers to accumulate points from their purchases, which they can redeem to pay for part or all of a future order, get freebies or insider perks, etc. For price-conscious consumers, loyalty programs offer much-needed discounts and deals, making it easier for them to spend.
While loyalty points may impact short-term revenue, it builds customer loyalty, ultimately driving long-term engagement and stickiness. Unlike cash discounts, points-based rewards help deliver incremental long-term value by encouraging repeat purchases and keeping customers coming back, which leads to more sales. In fact, 49% of US consumers say top brands should offer points or reward systems to keep them coming back, while 47% chose exclusive product or service discounts.
The downside of loyalty points is the complexity of the process, in terms of extra management and reducing immediate revenue when customers redeem points instead of paying in cash.
With Shopify POS, your loyalty program automatically tracks rewards while providing insights into purchasing patterns. Our approach is unique because it unifies customer data across both online and in-store purchases. This means:
The unified commerce approach means you can:
- See which products drive the most loyalty program engagement
- Identify your most valuable customers across all channels
- Create targeted marketing based on complete customer data
- Drive repeat business with personalized offers
The data shows this approach works. Retailers using Shopify POS see an average 9% increase in revenue. While managing loyalty points requires some extra work and reduces immediate revenue when redeemed, long-term customer relationships and increased sales make it worthwhile.
Pros and cons of different payment methods
Cash
Pros:
- Cash is easy and convenient.
- Money goes directly into your hands, with little to no wait time for deposits to become accessible in your bank account.
- There are no transaction fees with cash. All you have to do is go to the bank and deposit it.
Cons:
- Customers can only carry around so much cash.
- You need a safe on site or must make frequent trips to the bank.
- Having lots of cash on site can make you a target for theft from both employees and outsiders.
Checks and e-checks
Pros:
- There are no transaction fees for check payments.
- People tend to write checks for larger purchases.
- E-checks have fewer transaction limits.
Cons:
- You have to go to the bank to deposit a check, and it may take a few days for those funds to be accessible.
- People can write bogus checks, their checks can bounce, and they can stop payment, leaving you unpaid for your product or service.
- If checks are mailed for online orders, it may take a while for them to reach you.
Credit cards and debit cards
Pros:
- Makes your store appear more legitimate.
- You can cater to the growing number of consumers who carry less cash and pay with cards, especially online.
- Credit and debit card payments go directly into your business’s bank account, so you don’t need to visit the bank.
Cons:
- Credit and debit cards come with numerous fees, including merchant fees and processing fees.
- Credit card fraud could leave you responsible for fraudulent purchases.
- Data breaches may discourage customers from shopping at your store if they feel their information isn’t secure.
Mobile payments
Pros:
- It’s faster and easier for customers; they don’t even need to bring a wallet.
- Mobile payments are fairly quick to hit your business account (usually within three days).
- Customer data from mobile payments can aid in your marketing efforts.
Cons:
- Data breaches may occur if customers don’t secure their smartphones with strong passwords.
- No cross-platform solutions; you may need to invest in multiple systems for Apple Pay, Android Pay, etc.
- Brick-and-mortar shops need hardware that can accept mobile payments.
Gift cards and store credit
Pros:
- Gift cards encourage customers to spend more in your store.
- Using gift cards or store credit for returns can recapture the interest of customers.
- Gift cards are often given as gifts, providing an easy way to market your business.
Cons:
- Added expense to integrate software or hardware to accept gift cards as payment.
- Additional cost for website coding to accept gift cards as payment.
- Risk of fraud since gift cards are typically purchased anonymously and are untraceable.
Custom payments
Pros:
- Allows businesses to be more flexible to their customers’ needs.
Cons:
- May require investment in a more versatile (and likely more expensive) POS system.
Cryptocurrency
Pros:
- Cryptocurrency has lower fees and no international fees.
- Data breaches and fraud are much less likely with cryptocurrency transactions.
- All transactions are permanent, meaning only the business owner can initiate refunds or changes.
Cons:
- Cryptocurrency values can fluctuate dramatically.
- The IRS requires you to track the value of each cryptocurrency on the day it’s received and the day it’s sold, leading to significant paperwork.
- A high volume of refunds can create extra work since all transactions are permanent.
Buy now, pay later
Pros:
- There are no upfront fees for consumers to use the service.
- Extends credit to consumers without credit cards or good credit, encouraging them to spend more potentially.
- BNPL entices casual shoppers to convert, which can lower cart abandonment rates.
Cons:
- BNPL providers tend to charge retailers higher percentages for using their services, which can create financial constraints.
- Customers may make more impulse purchases, which may result in higher and costly returns or exchanges.
- Customer service issues that may arise can put your customer experience and business reputation at risk.
Loyalty points
Pros:
- Incentivize customers to return for more, building customer loyalty and retention.
- Can lead to more sales and lower customer acquisition costs (CAC).
- Provides insights about customers making it easier to send targeted offers and deals.
Cons:
- Add an extra layer of complexity than other payment methods.
- Can reduce short-term revenues.
How to accept various retail payments
Open a bank account
The US Small Business Association recommends that every business open a business bank account upon receiving a federal employer identification number (EIN), a federal tax ID to identify the business entity.
Business bank accounts will provide you with limited liability protection, help you in your bookkeeping, and make things a little less complicated when tax season rolls around.
The right business bank accounts will really depend on the needs of your business. There are a lot of different kinds out there, but here are some things to look out for:
- Do they have any introductory offers?
- What account features and services do they offer? (I.e., Do they have a good online and mobile banking system? Do they have check writing services?)
- What are their interest rates for savings and checking accounts?
- What are their interest rates for lines of credit?
- What are their transaction fees? (Do they charge by the week, month, year? Do they charge based on transaction volumes?)
- Do they have early termination fees?
- Do they have minimum account balance fees, and if they do, what are they?
- Are they compatible with whatever software you are using to help run your business (e.g., payroll software, accounting software, etc.)?
For example, if you’re mainly an online business just starting out and you’re based in the US, you might want to consider Axos Bank. It has no monthly service charges, no minimum balance requirements, and no fees.
If you’re based out of Canada, consider one of the many business accounts at the Royal Bank of Canada. Its website provides an assessment quiz to help you decide on the best account for you.
💡 PRO TIP: With Shopify Balance, you can skip opening a business bank account and manage your finances in Shopify. Avoid monthly and hidden fees, earn cashback rewards on business purchases, get exclusive offers tailored to your business, and more.
Choose the right point of sale (POS)
There are a lot of different POS systems out there, but choosing the right POS system for your small business is key. Here are some things to consider when choosing a POS system:
- Is this system designed more for in-store or online usage? If you’re operating in both brick-and-mortar and online, it’s best if you can find a POS that can connect your in-store and online sales so your inventory is always updated in real time.
- Will it allow you to collect multiple forms of payments? The more payments your POS is able to accept, the more business you can accept.
- Does it collect sales data and provide analytics? This will help you understand which products are selling and which ones are not.
- Does it build customer profiles? This will show you what marketing campaigns work on what customers and what customer experience is bringing them back to your store.
- Does it integrate with your other tech? Check to see if your POS system has partnerships with other software and apps (i.e., your accounting software, the apps designed for your store).
- How much does it cost? You can find open-source POS systems that cost you nothing, as well as POS systems that require $1,000 per month subscriptions. So make sure the system you choose has the right features and functionality at the right price point for you.
- Does this system have good support? Technical issues are inevitable, so choosing a company that has a good record for helpful customer and technical support will alleviate a lot of headaches for you in the future.
As a retail business, your best bet is using a point-of-sale (POS) system with integrated payment processing, like Shopify POS.
With Shopify POS, you can:
- Process sales and take payments
- Offer flexible returns, exchanges, and store credits (e.g.,buy online, return in-store)
- Provide flexible payment, purchase, and delivery options
- Gain full visibility into your inventory across all locations, updated in real time
- Access robust analytics and reports
- See customer profiles, order histories, and loyalty program status
- Leverage app integrations to extend your POS system’s capabilities
- Easily integrate with your business tech stack (e.g., marketing, accounting software, etc.)
Purchase the right hardware (credit card readers, tap to pay/contactless, etc.)
Retailers need hardware to process payments like tap to pay. Many times, the POS company you choose will offer hardware as part of a package deal with its POS software, or it will recommend hardware that is compatible with its POS software.
Common hardware you’ll need includes:
- POS terminal, which is the device your POS software runs on. You can also install mobile POS software on a tablet, smartphone, desktop, or laptop with an internet connection.
- Cash drawer to safely store cash people use to pay for products.
- Tablet or smartphone to process transactions and accept payments anywhere in-store. Staff can also count and adjust inventory on the go.
- Barcode scanner to read an item’s product details and ring up sales. Shopify POS lets you scan a product’s barcode using your tablet or smartphone’s camera, rather than using a barcode scanner. To get started with barcodes, you can try Shopify's free barcode generator.
- Credit and debit card reader to accept debit and credit card payments. This hardware lets customers swipe, tap, or use an EMV chip to make a purchase.
- Receipt printer, just in case customers prefer paper receipts over emailed ones.
Finding the right hardware for your business can be a balancing act. You have to figure out which payment methods are popular with your client base and the type of hardware you’ll need to invest in so you can process those payment methods.
💡 PRO TIP: Shopping for a POS system and hardware can feel tedious. Before you decide what’s right for you, we recommend learning which factors influence how much a POS system costs.
Payment gateway (for ecommerce)
A payment gateway is basically a software application that authorizes an online payment and connects it with a bank. This allows your customers the convenience to pay for their purchases from a computer or mobile device.
Here are some things to consider when choosing which payment gateway to go with:
- Does the gateway integrate well with your POS system?
- What types of payment methods does the gateway accept? Make sure to find the gateway that works with your customer base’s preferred payment methods.
- What type of pricing options does the payment gateway offer? There are a number of ways a processor can structure its pricing options. Choose the one that works best for your business.
- Does this gateway provide 24/7 customer support? Technical issues with your gateway are going to stop sales from coming in, so make sure whatever gateway you choose has good customer support.
With e-retail sales projected to reach $6.8 trillion by 2028, finding the right payment gateway for your online sales is going to be an important aspect of making your business a success.
How to choose a retail payment processor
- Reliability: If the payment processing system is offline, even briefly, it can hurt sales. Check the processor’s uptime statistics to know how well it performs. Note the frequency and duration of a system failure, so you can monitor lost purchases during the downtime and how much. If downtime becomes frequent, consider a more reliable provider to avoid losing sales.
- Security: Make sure the processor complies with industry security standards, such as the Payment Card Industry Data Security Standard (PCI DSS) to ensure safe transactions for your business and customers. Look for features like encryption, fraud detection, and secure payment gateways to protect customers’ sensitive data and maintain their trust.
- Fees: Understand and compare fee structures, reviewing each provider’s transaction fees, setup costs, monthly charges, chargeback fees, foreign exchange rates, additional fees for international transactions, and any hidden fees. Then, choose a solution that aligns with your budget and sales volume and supports popular local payment methods in your target markets.
- Scalability: Find a payment processor that can scale with your business as it grows, handle sudden spikes in transaction volume, and offers the features you'll need as you expand, without significant fee jumps.
- Integration: Check how well the processor integrates with your existing tech stack, including your POS system and accounting software, to streamline operations and reduce errors. Request a trial or demo to test compatibility firsthand. Shopify Payments, for example, offers seamless integration with more than 100 payment gateways worldwide, so you can offer multiple payment methods and enhance the customer experience.
- Customer support: Reliable customer support ensures you resolve payment-related issues quickly and minimize downtime and customer frustration. Check whether the processor offers 24/7 support and multiple contact channels, like phone, email, and live chat. Read reviews or testimonials and ask for referrals to gauge the quality of the processor’s support team.
Trends in retail payment methods
Local payments
Thanks to the democratising effect of mobile phones, local payment methods, like digital wallets, account-to-account (A2A) payments, BNPL offerings, and carrier billing are gaining a share of checkout over global card schemes. For example, China’s Alipay and WeChat Pay, and India’s UPI easily leapfrogged legacy card-centric payment systems, which are failing to keep pace with the needs of rapidly developing markets.
According to Boku’s 2024 Global Ecommerce Report, LPMs will reach 58% of all ecommerce transaction value globally by 2028 owing to continued strong growth in ecommerce. A2A payments or real-time bank transfers will be the fastest-growing LPM for ecommerce, with an expected 18% growth in transaction volumes by 2028.
Banks and local fintechs that introduce their proprietary brand of payments through mobile banking apps and mobile wallets promise more value, convenience, and security, making the payment landscape more dynamic for retailers and consumers. National governments will also prefer to support local payment solutions over foreign ones, like Poland’s BLIK or Brazil’s Pix, an instant-payment system, which garnered more than 160 million users in less than four years.
Businesses that embrace the growing dominance of LPMs by offering customers the freedom to pay however they want to, will reach more customers, convert more sales, prevent fraud, and forge lasting relationships with their customer base.
QR code payments
QR code payments are becoming increasingly popular as a quick, easy, and low-cost way to pay for goods and services. Market research shows the QR codes payment market is expected to witness notable growth reaching $35.07 billion by 2030. This will be driven largely by the ease and accessibility of smartphones and surge in faster connectivity.
Shoppers need only scan a QR code with their phones, enter the amount to be paid, and authorize payment through a mobile wallet to complete the transaction in a few clicks.
For merchants, QR code payments are a great way to meet customers’ growing expectations for more touch-free ways to complete their purchases. Plus, they ensure speedy bill payment as funds are deducted from customers’ accounts in near real-time.
Choose the right payment options for your business
When you have a POS system that makes it effortless for you to accept varied payment options, there are really no drawbacks to accepting all of the payment types your customers want to use.
Offering customers the payment flexibility they’re looking for means they spend more and enjoy a better customer experience, and opens up the opportunity for you to deepen and sustain long-term loyal customer relationships.
This post was originally written by Roxanne Voidonicolas and has been updated by Michael Keenan.
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Retail payment options FAQ
What are the 4 types of payment methods?
The four types of payment methods are cash, check, credit, and money order.
What are the three payment systems?
The three payment systems are check, credit card and debit card, and digital payment.
What is a retail payment system?
A retail payment system refers to the various methods by which retail customers can pay for goods and services. These include cash, cheque, credit and debit card, and electronic fund transfer.
What are the most popular e-payment systems?
The most popular e-payment systems are PayPal, Stripe, and Amazon Pay.