Diversification of payment methods: improving the customer experience in the digital and physical world

Online shopping has become a common practice among consumers and, with it, the need for secure and efficient payment methods. However, the diversity of options available can be difficult for SMEs and self-employed to manage. From traditional methods such as credit cards and PayPal, to mobile payments, bank transfers and cryptocurrencies, each method has its advantages and disadvantages. 

In this situation, it is essential for SMEs to assess their customers' preferences and select the most appropriate payment methods, considering the associated cost and the target audience.  In addition, knowledge of the customer and the business model are key to making the right decisions in the selection of payment methods. 

In order to choose the most appropriate payment method for the business, it is essential to identify the needs and preferences of the target audience. In Spain, cash is preferred for face-to-face transactions, while in e-commerce the most used methods are digital wallets, credit cards, account-to account payments and debit cards, according to the FIS report (Digital Wallets (31%), credit cards (28%), A2A (18%), debit card (16%), Buy now pay later (BNPL) (3%), cash on delivery (3%) and cash in advance (1%)). 

There are three main groups of providers that can help manage payments (financial institutions, fintechs and bigtech) and four main payment channels (card payment, account-to-account payment, crypto payment, and private payment channels). Once the most suitable providers have been selected, in order to know which payment method is best suited to an SME or self-employed person, it is essential to identify the needs and preferences of customers, research the different payment providers available on the market, assess both the fees and costs of the different payment methods, integrate the selected payment methods into the online shop and, finally, carry out exhaustive control and monitoring. 

Offering multiple payment methods for online shopping, firstly, improves the customer experience by offering flexibility in the payment method, which increases the likelihood of customer loyalty. Secondly, it can give a business a competitive advantage by differentiating itself from competitors who offer limited online payment options. It can also reduce the risk of fraud and increase security, among other things. 

Lastly, the most popular payment gateways on the market such as Redsys, PayPal, Paycomet, Stripe, MONEI or checkout.com, among others, are detailed. These platforms offer a variety of payment options and advanced fraud protection features and customisable payment forms that can be integrated into any online shop. 

In short, offering a variety of payment options is essential as it not only increases customer satisfaction, but also improves transaction security and reduces the risk of fraud. At the same time, it can have a positive impact on brand image, overall sales and can significantly improve the online shopping experience and increase revenues.