Payment solutions in 2020: what are the options?

There have never been more options on how to pay, and as a merchant, it might be challenging sometimes to keep an overview of what methods you can and should provide. When we talk about payment, we’re talking about three distinct methods:

• Traditional: Physical cash. Still popular, still prevalent, but not as dominant as it once was. By 2022, estimates suggest that cash will make up just 17% of total global Point of Sale (PoS) transactions – down from 31% in 2018.

Electronic: Electronic payments are powered by an item or device which is connected to the customer’s bank account or prepaid account. Whether it’s a bank card or payment app, this verified and secure connection is what allows their money to be transferred through your payment solution. This type of payment usually takes place in brick-and-mortar stores using one of the following:     

  • Chip & PIN bank card: credit or debit card with PIN entry at the terminal
  • Contactless bank cards: credit or debit card without PIN entry
  • NFC-enabled mobile device: known as eWallets, mobile wallets, or digital wallets
  • QR code transaction: via a mobile app or mobile website

There are also overlaps between some methods. For example, a system that is able to accept contactless bank cards is also able to process NFC-enabled mobile device payments (e.g. Apple Pay) – because they use similar technology.

Nowadays, there is a huge drive to contactless. However, Chip & PIN shouldn’t be ignored, because many people still prefer to use it. So, contactless-only systems (without a pin-pad) are only suitable for merchants who are 100% sure that their customers prefer contactless cards and mobile wallets.

Online: This refers to eCommerce and webshops. Online shopping is more accessible now than it has ever been thanks to better connectivity and affordable smartphones, tablets, and laptops.

Free payment guide

Do you want learn more about online and in-store payment solutions? Download our free Complete Guide to Payment here.

Read more about payment in our free payment guide