Online Payment Services: Providers You Should Know

Online Payment Services: Providers You Should Know

Online Payment Services: Providers You Should Know

Online Payment Services: Providers You Should Know

Payment services facilitate swift online shopping » PayPal, Giropay & Co. » Discover the best-performing payment services » Learn more now.

Payment services facilitate swift online shopping » PayPal, Giropay & Co. » Discover the best-performing payment services » Learn more now.

Payments-and-checkout

Jun 23, 2022

Payment methods on the internet have multiplied, and many customers rely on traditional payment methods such as direct debit or purchase on account when shopping online. Despite the strong trust in conventional payment methods, online payment services are gaining increasing popularity. These services, often provided by third parties, impress with swift and convenient payment processing.

In this article, you'll discover the different payment services available and how they differ. We'll explain why it's worthwhile for shop owners to offer various payment options to their customers.

Payment methods on the internet have multiplied, and many customers rely on traditional payment methods such as direct debit or purchase on account when shopping online. Despite the strong trust in conventional payment methods, online payment services are gaining increasing popularity. These services, often provided by third parties, impress with swift and convenient payment processing.

In this article, you'll discover the different payment services available and how they differ. We'll explain why it's worthwhile for shop owners to offer various payment options to their customers.

Payment methods on the internet have multiplied, and many customers rely on traditional payment methods such as direct debit or purchase on account when shopping online. Despite the strong trust in conventional payment methods, online payment services are gaining increasing popularity. These services, often provided by third parties, impress with swift and convenient payment processing.

In this article, you'll discover the different payment services available and how they differ. We'll explain why it's worthwhile for shop owners to offer various payment options to their customers.

Payment methods on the internet have multiplied, and many customers rely on traditional payment methods such as direct debit or purchase on account when shopping online. Despite the strong trust in conventional payment methods, online payment services are gaining increasing popularity. These services, often provided by third parties, impress with swift and convenient payment processing.

In this article, you'll discover the different payment services available and how they differ. We'll explain why it's worthwhile for shop owners to offer various payment options to their customers.

What are Payment Services?

When using online payment services on the internet, the payment doesn't occur directly between the merchant and the buyer, as is customary. Instead, it is facilitated by third parties. The payment intermediary takes care of the payment processing. Transactions through online payment services are considered particularly secure, as the buyer only pays when the goods have actually been delivered. Sellers are also protected and won't be left with unpaid invoices.

Online retailers compensate for this security by paying a fee, which constitutes a certain percentage of the invoice amount.

When using online payment services on the internet, the payment doesn't occur directly between the merchant and the buyer, as is customary. Instead, it is facilitated by third parties. The payment intermediary takes care of the payment processing. Transactions through online payment services are considered particularly secure, as the buyer only pays when the goods have actually been delivered. Sellers are also protected and won't be left with unpaid invoices.

Online retailers compensate for this security by paying a fee, which constitutes a certain percentage of the invoice amount.

When using online payment services on the internet, the payment doesn't occur directly between the merchant and the buyer, as is customary. Instead, it is facilitated by third parties. The payment intermediary takes care of the payment processing. Transactions through online payment services are considered particularly secure, as the buyer only pays when the goods have actually been delivered. Sellers are also protected and won't be left with unpaid invoices.

Online retailers compensate for this security by paying a fee, which constitutes a certain percentage of the invoice amount.

When using online payment services on the internet, the payment doesn't occur directly between the merchant and the buyer, as is customary. Instead, it is facilitated by third parties. The payment intermediary takes care of the payment processing. Transactions through online payment services are considered particularly secure, as the buyer only pays when the goods have actually been delivered. Sellers are also protected and won't be left with unpaid invoices.

Online retailers compensate for this security by paying a fee, which constitutes a certain percentage of the invoice amount.

How do Payments through Online Payment Services Work?

The exact process of payment processing varies slightly among different providers. Generally, payments follow one of these methods:

  1. Virtual Account: Users can deposit funds into a virtual account, and the purchase amount is then deducted from it during online shopping.

  2. Direct Debit via the Service Provider: For some online payment services, users need to provide their bank details when creating an account. These details are verified, and invoice amounts are then directly debited from the customer's bank account by the payment service provider.

  3. Redirect to Online Banking: Buyers are redirected from the shop to their bank's online banking platform. The customer can then transfer the invoice amount. The seller is protected by the respective bank in case of payment delays.

It's important to note that not all payment services offer only one of these methods. Providers like PayPal, for instance, allow users both to deposit funds into a PayPal account and to directly debit invoice amounts from their bank account.

The exact process of payment processing varies slightly among different providers. Generally, payments follow one of these methods:

  1. Virtual Account: Users can deposit funds into a virtual account, and the purchase amount is then deducted from it during online shopping.

  2. Direct Debit via the Service Provider: For some online payment services, users need to provide their bank details when creating an account. These details are verified, and invoice amounts are then directly debited from the customer's bank account by the payment service provider.

  3. Redirect to Online Banking: Buyers are redirected from the shop to their bank's online banking platform. The customer can then transfer the invoice amount. The seller is protected by the respective bank in case of payment delays.

It's important to note that not all payment services offer only one of these methods. Providers like PayPal, for instance, allow users both to deposit funds into a PayPal account and to directly debit invoice amounts from their bank account.

The exact process of payment processing varies slightly among different providers. Generally, payments follow one of these methods:

  1. Virtual Account: Users can deposit funds into a virtual account, and the purchase amount is then deducted from it during online shopping.

  2. Direct Debit via the Service Provider: For some online payment services, users need to provide their bank details when creating an account. These details are verified, and invoice amounts are then directly debited from the customer's bank account by the payment service provider.

  3. Redirect to Online Banking: Buyers are redirected from the shop to their bank's online banking platform. The customer can then transfer the invoice amount. The seller is protected by the respective bank in case of payment delays.

It's important to note that not all payment services offer only one of these methods. Providers like PayPal, for instance, allow users both to deposit funds into a PayPal account and to directly debit invoice amounts from their bank account.

The exact process of payment processing varies slightly among different providers. Generally, payments follow one of these methods:

  1. Virtual Account: Users can deposit funds into a virtual account, and the purchase amount is then deducted from it during online shopping.

  2. Direct Debit via the Service Provider: For some online payment services, users need to provide their bank details when creating an account. These details are verified, and invoice amounts are then directly debited from the customer's bank account by the payment service provider.

  3. Redirect to Online Banking: Buyers are redirected from the shop to their bank's online banking platform. The customer can then transfer the invoice amount. The seller is protected by the respective bank in case of payment delays.

It's important to note that not all payment services offer only one of these methods. Providers like PayPal, for instance, allow users both to deposit funds into a PayPal account and to directly debit invoice amounts from their bank account.

What Payment Services are Available?

As an online retailer, it's crucial to choose payment services that are secure and trustworthy. Offering a service that customers are already familiar with builds trust and reduces the checkout abandonment rate. Additionally, the payment process can be significantly shortened if, instead of providing the entire bank details, customers only need to log in to their payment service account. This, in turn, enhances the overall shopping experience.

To provide you with an overview, we've listed the most common online payment service providers:

  1. PayPal: The most popular online payment service in the UK is PayPal, with over 16 million customers nationwide in 2021. PayPal combines various payment processing options and provides users with buyer protection. Tokenisation of payment data ensures high security for PayPal transactions. The market leader charges a fee to sellers for each transaction, while customers enjoy free transactions. For added flexibility, PayPal offers a "Buy Now Pay Later" (BNPL) option, allowing customers to pay after receiving the goods.

  2. Giropay or Paydirekt: Formerly separate payment systems of German banks, Giropay and Paydirekt have now merged under the Giropay brand. The service redirects users from shops to the online banking area, facilitating transfers. As a merchant, you benefit from payment guarantee through Giropay. Additionally, Giropay is highly secure, and customers with online banking access don't need to create a separate account with a third-party provider. In addition to setup fees, merchants also incur a percentage-based charge per invoice.

  3. Apple Pay: Apple's online payment service functions as a digital wallet where users can store multiple credit cards. Unlike the previously mentioned services, Apple Pay requires customers to have both an Apple device and a credit card. The advantages include high data security and free usage for online retailers. While there are no specific fees for processing through Apple Pay, merchants must bear regular fees for credit card payments. Apple Pay has recently introduced the BNPL payment option, allowing customers to delay payment, similar to a purchase on account.

As an online retailer, it's crucial to choose payment services that are secure and trustworthy. Offering a service that customers are already familiar with builds trust and reduces the checkout abandonment rate. Additionally, the payment process can be significantly shortened if, instead of providing the entire bank details, customers only need to log in to their payment service account. This, in turn, enhances the overall shopping experience.

To provide you with an overview, we've listed the most common online payment service providers:

  1. PayPal: The most popular online payment service in the UK is PayPal, with over 16 million customers nationwide in 2021. PayPal combines various payment processing options and provides users with buyer protection. Tokenisation of payment data ensures high security for PayPal transactions. The market leader charges a fee to sellers for each transaction, while customers enjoy free transactions. For added flexibility, PayPal offers a "Buy Now Pay Later" (BNPL) option, allowing customers to pay after receiving the goods.

  2. Giropay or Paydirekt: Formerly separate payment systems of German banks, Giropay and Paydirekt have now merged under the Giropay brand. The service redirects users from shops to the online banking area, facilitating transfers. As a merchant, you benefit from payment guarantee through Giropay. Additionally, Giropay is highly secure, and customers with online banking access don't need to create a separate account with a third-party provider. In addition to setup fees, merchants also incur a percentage-based charge per invoice.

  3. Apple Pay: Apple's online payment service functions as a digital wallet where users can store multiple credit cards. Unlike the previously mentioned services, Apple Pay requires customers to have both an Apple device and a credit card. The advantages include high data security and free usage for online retailers. While there are no specific fees for processing through Apple Pay, merchants must bear regular fees for credit card payments. Apple Pay has recently introduced the BNPL payment option, allowing customers to delay payment, similar to a purchase on account.

As an online retailer, it's crucial to choose payment services that are secure and trustworthy. Offering a service that customers are already familiar with builds trust and reduces the checkout abandonment rate. Additionally, the payment process can be significantly shortened if, instead of providing the entire bank details, customers only need to log in to their payment service account. This, in turn, enhances the overall shopping experience.

To provide you with an overview, we've listed the most common online payment service providers:

  1. PayPal: The most popular online payment service in the UK is PayPal, with over 16 million customers nationwide in 2021. PayPal combines various payment processing options and provides users with buyer protection. Tokenisation of payment data ensures high security for PayPal transactions. The market leader charges a fee to sellers for each transaction, while customers enjoy free transactions. For added flexibility, PayPal offers a "Buy Now Pay Later" (BNPL) option, allowing customers to pay after receiving the goods.

  2. Giropay or Paydirekt: Formerly separate payment systems of German banks, Giropay and Paydirekt have now merged under the Giropay brand. The service redirects users from shops to the online banking area, facilitating transfers. As a merchant, you benefit from payment guarantee through Giropay. Additionally, Giropay is highly secure, and customers with online banking access don't need to create a separate account with a third-party provider. In addition to setup fees, merchants also incur a percentage-based charge per invoice.

  3. Apple Pay: Apple's online payment service functions as a digital wallet where users can store multiple credit cards. Unlike the previously mentioned services, Apple Pay requires customers to have both an Apple device and a credit card. The advantages include high data security and free usage for online retailers. While there are no specific fees for processing through Apple Pay, merchants must bear regular fees for credit card payments. Apple Pay has recently introduced the BNPL payment option, allowing customers to delay payment, similar to a purchase on account.

As an online retailer, it's crucial to choose payment services that are secure and trustworthy. Offering a service that customers are already familiar with builds trust and reduces the checkout abandonment rate. Additionally, the payment process can be significantly shortened if, instead of providing the entire bank details, customers only need to log in to their payment service account. This, in turn, enhances the overall shopping experience.

To provide you with an overview, we've listed the most common online payment service providers:

  1. PayPal: The most popular online payment service in the UK is PayPal, with over 16 million customers nationwide in 2021. PayPal combines various payment processing options and provides users with buyer protection. Tokenisation of payment data ensures high security for PayPal transactions. The market leader charges a fee to sellers for each transaction, while customers enjoy free transactions. For added flexibility, PayPal offers a "Buy Now Pay Later" (BNPL) option, allowing customers to pay after receiving the goods.

  2. Giropay or Paydirekt: Formerly separate payment systems of German banks, Giropay and Paydirekt have now merged under the Giropay brand. The service redirects users from shops to the online banking area, facilitating transfers. As a merchant, you benefit from payment guarantee through Giropay. Additionally, Giropay is highly secure, and customers with online banking access don't need to create a separate account with a third-party provider. In addition to setup fees, merchants also incur a percentage-based charge per invoice.

  3. Apple Pay: Apple's online payment service functions as a digital wallet where users can store multiple credit cards. Unlike the previously mentioned services, Apple Pay requires customers to have both an Apple device and a credit card. The advantages include high data security and free usage for online retailers. While there are no specific fees for processing through Apple Pay, merchants must bear regular fees for credit card payments. Apple Pay has recently introduced the BNPL payment option, allowing customers to delay payment, similar to a purchase on account.

Which Payment Service is the Best?

Customers in e-commerce have diverse requirements and preferences. As a merchant, the focus should not be on determining the best payment service but rather on providing your customers with a broad range of payment methods.

While PayPal may reach the majority of customers, there are internet users who prefer not to pay through third-party providers and only trust their own bank. The solution to this challenge is simple: payment processing through payment service providers like Mollie allows for a wide range of payment methods without the need for merchants to enter numerous contracts.

With just one plugin, you can integrate various payment services into your online shop using Mollie. Give your customers the choice—rely on Mollie.

  • Integrate all popular online payment services with just one plugin

  • Pay for only one contract instead of several

  • Minimise the risk of payment failure

  • Manage all incoming and outgoing payments through the dashboard

Customers in e-commerce have diverse requirements and preferences. As a merchant, the focus should not be on determining the best payment service but rather on providing your customers with a broad range of payment methods.

While PayPal may reach the majority of customers, there are internet users who prefer not to pay through third-party providers and only trust their own bank. The solution to this challenge is simple: payment processing through payment service providers like Mollie allows for a wide range of payment methods without the need for merchants to enter numerous contracts.

With just one plugin, you can integrate various payment services into your online shop using Mollie. Give your customers the choice—rely on Mollie.

  • Integrate all popular online payment services with just one plugin

  • Pay for only one contract instead of several

  • Minimise the risk of payment failure

  • Manage all incoming and outgoing payments through the dashboard

Customers in e-commerce have diverse requirements and preferences. As a merchant, the focus should not be on determining the best payment service but rather on providing your customers with a broad range of payment methods.

While PayPal may reach the majority of customers, there are internet users who prefer not to pay through third-party providers and only trust their own bank. The solution to this challenge is simple: payment processing through payment service providers like Mollie allows for a wide range of payment methods without the need for merchants to enter numerous contracts.

With just one plugin, you can integrate various payment services into your online shop using Mollie. Give your customers the choice—rely on Mollie.

  • Integrate all popular online payment services with just one plugin

  • Pay for only one contract instead of several

  • Minimise the risk of payment failure

  • Manage all incoming and outgoing payments through the dashboard

Customers in e-commerce have diverse requirements and preferences. As a merchant, the focus should not be on determining the best payment service but rather on providing your customers with a broad range of payment methods.

While PayPal may reach the majority of customers, there are internet users who prefer not to pay through third-party providers and only trust their own bank. The solution to this challenge is simple: payment processing through payment service providers like Mollie allows for a wide range of payment methods without the need for merchants to enter numerous contracts.

With just one plugin, you can integrate various payment services into your online shop using Mollie. Give your customers the choice—rely on Mollie.

  • Integrate all popular online payment services with just one plugin

  • Pay for only one contract instead of several

  • Minimise the risk of payment failure

  • Manage all incoming and outgoing payments through the dashboard

Conclusion

Payment services are becoming increasingly popular, combining good usability with high security standards for both buyers and sellers. The payment processing varies slightly depending on the provider. To meet the diverse preferences of customers, it's advisable to offer various payment services, along with traditional payment methods like direct debit, in your online shop.

Payment services are becoming increasingly popular, combining good usability with high security standards for both buyers and sellers. The payment processing varies slightly depending on the provider. To meet the diverse preferences of customers, it's advisable to offer various payment services, along with traditional payment methods like direct debit, in your online shop.

Payment services are becoming increasingly popular, combining good usability with high security standards for both buyers and sellers. The payment processing varies slightly depending on the provider. To meet the diverse preferences of customers, it's advisable to offer various payment services, along with traditional payment methods like direct debit, in your online shop.

Payment services are becoming increasingly popular, combining good usability with high security standards for both buyers and sellers. The payment processing varies slightly depending on the provider. To meet the diverse preferences of customers, it's advisable to offer various payment services, along with traditional payment methods like direct debit, in your online shop.

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MollieGrowthOnline Payment Services: Providers You Should Know
MollieGrowthOnline Payment Services: Providers You Should Know