7 types of online payments for eCommerce

by | Apr 22, 2020 | 0 comments

You probably want to know the types of online payments for ecommerce now let me tell you why the payment method is so important. Part of the success of an eCommerce is due to the ease that the customer has to make online payments.

In fact, the 2015 eCommerce Study prepared by IAB Spain states that 22% of users abandon their purchase because they cannot find payment methods adapted to their needs. That is why it is vital to work to gain the trust of users, offering a safer, more varied shopping experience and with more guarantees, if possible, than a physical store.

Based on the same report, PayPal is the preferred form of payment for 64% of Spaniards due to the privacy with which transactions are carried out and the security that this reports to consumers.

They are followed by credit and debit cards, which for 25% are the most comfortable option. Finally, there is a low penetration of cash on delivery, which barely reaches 7%. Still don’t know which one to implement in your business? We tell you below the 7 types of online payments most used in eCommerce, starting with these three that we just mentioned.

online payments for eCommerce

The most used types of online payments for eCommerce

Find below the payment system you should know:


PayPal is a payment method born in 1998 and purchased by eBay in 2002. It then served as a platform to guarantee auction transactions and returns when the product did not meet the buyer’s expectations. Little by little it expanded until it became, today, one of the most widely used payment systems.

What PayPal does is mediate between the buyer and the seller, so that the seller only receives an email of the payment notice and the monetary amount corresponding to the item sold. This means that at no time do you know the personal data of the buyer, nor his account number. This security, together with the simplicity of the transaction, makes it possible to increase conversion rates at checkout and recover lost sales with card payments.

More advantages

  • Speed: to buy you only need the PayPal access data.
  • Flexibility: you can enter the money in PayPal through card, transfer, another PayPal account or use it as a payment gateway.

Main disadvantages

  • Commissions for the seller based on the number of sales (variable commission between 1.9% and 3.4% + fixed fee of € 0.35 per transaction).
  • Commissions for the buyer if there is a currency exchange in the process.

Online payments through cards

The cards are plastic payment tools, numbered and magnetized, issued by a bank that authorizes its bearer to use them as a means of payment in businesses that adhere to this system. The instrument used to materialize these payments is the payment gateway, also called virtual POS, which is the online version of the classic dataphone that we can find in physical stores.

The process begins when a consumer generates an order, chooses the card payment method and the payment gateway asks for the details of his. It is then when the payment gateway sends the information to the card issuing entity, which accepts or rejects the operation and informs it of the status of the transaction. Finally, it is the online store that alerts the customer of the admission or not of their purchase.

At the time of payment, the buyer is usually able to choose between their cards, which can be credit or debit. The first option does not need to previously provide funds to the entity that assumes the debt, while in the second, the amount of the purchases is deducted from the bank account at the time of purchase. It is at this precise moment that both one and the other alternative ask for a verification code to avoid possible fraud.


  • The money is received in advance.
  • It is a form of immediate payment.


  • Commissions for the seller.

Cash on delivery

Cash on delivery allows the collection of an online sale at the time of delivery. This makes it perceived as a safe method among consumers who do not fully trust eCommerce, since they can also check the quality of the order before paying for it.

This means of payment is increasingly obsolete. It is normally applied when the website is new and you want to generate initial customer trust or when the target is elderly. Items sent through this system must be non-perishable, since if the client decides at the last moment not to pay, in addition to losing shipping costs, the product would also be lost.


  • If the client does not pay for the merchandise, it is not delivered.


  • Returns or failed deliveries, because this implies that the company bears the shipping costs.
  • Shipping costs are charged to the buyer.

Bank transfers

Bank transfer is also a method that has lost strength over time. In this case, online stores provide the customer with the details of a bank account so that they can proceed with the payment of the order, which will be managed once said payment is confirmed.


  • The money is received in advance.
  • Low cost for commerce because it does not require specific technical developments of connection in the online store.
  • There are no commissions for the seller.


  • The delay in the purchase process, since until the seller receives the transfer, he does not send the order.
  • Risk that the buyer does not make the payment, which reduces the conversion and makes it difficult, for example, to manage the stock.
  • Commissions for the buyer according to their banking conditions.

Online payments via mobile

Among the latest trends in electronic commerce, payment through our mobile devices stands out. Within it there are many types: the transfer of money between different users, such as Twyp, from the ING Direct bank; mCommerce or purchase in online stores through this device; or mobile payments at the point of sale through NFC technology or QR codes.

Likewise, virtual wallets are emerging in the form of apps that store users’ personal and bank details in order to carry out transactions more quickly and to have all the operations available at a single click. This is the case of Vodafone Wallet, Google Wallet and Apple Pay.


  • Avoid long lines at points of sale.
  • Eliminate the problem of change and lack of cash.
  • Security and quick control of expenses, income and transactions.


  • It is not useful for all audiences, since those who do not have a mobile (elderly target) will not be able to enjoy these possibilities.

Virtual currency

It is not a bank, an intermediary company, or an investment fund. Bitcoin is an online payment model that is revolutionizing the Internet, since its use is exclusively online. It can be used to carry out any type of transaction, either to pay for a product in an online store or to send money to a family member at the other end of the world.

Users who want to use bitcoins have to buy them from someone who has them and wants to exchange them for euros. Currently a bitcoin is exchanged for approximately € 365.


  • It is decentralized.
  • Allows easy currency exchange.
  • Its falsification is impossible.
  • Money cannot be intervened by anyone or frozen.
  • Identity protection.


  • The current shortage of supply of bitcoins.
  • The transactions are irreversible.

Online banks

imaginBank, from La Caixa, is the first 100% online bank in Spain. It consists of a mobile platform in which all operations (payments, movements, balance, contributions …) are centralized, so that the user does not have to go to a physical entity or an associated web page.


  • Mobile payments made easy.
  • Security and control over money.
  • Centralization of operations.
  • Everywhere and at all times.
  • Free account and without conditions.


  • It is not useful for all audiences, since those who do not have a mobile (elderly target) will not be able to enjoy these possibilities.

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