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E-Commerce Tips: The 5 Best Online Payment Options

E-commerce payment options
  • Influence of payment methods on customer satisfaction

  • The most popular payment methods for Germans

  • Overview of payment options and their advantages and disadvantages


Nearly 70% of customers who shop online abandon the purchase before making a payment, according to a study by the Danish Baymard Institute. There are many reasons for this, such as high shipping costs or a payment process in which it’s impossible to order as a guest without creating a customer account. But the payment methods offered by the store also play a significant role. If the buyers do not find their preferred payment option during the payment process, many of them drop out.  


Make it Easy for Customers!

You should therefore integrate as many payment methods as possible into your online store to make the payment process as easy as possible for your customers. According to Ibi Research, the most popular payment option in Germany in 2020 was payment via PayPal, followed by purchase on account, direct debit and payment by credit card. However, since two-stage authentication is now frequently required for data protection reasons when paying by credit card, many customers are switching to less complicated payment procedures. In addition, many payment processes take place via mobile devices, which is why payment service providers such as PayPal, Amazon Pay or Apple Pay will become more popular in the future, simply for reasons of convenience. You should have all this in mind when you create payment methods in your store or add new ones.


Payment Service Provider

In order to make adding payment options easier, you should set up the payment functions through a payment service provider (PSP), for example Klarna, PayPal+, Adyen). The advantage here is that you only need to sign a contract with the PSP and not several contracts with several different payment service providers. In addition, the PSP usually provides you with software that you can integrate into your store. 


Define Your Target Group for Payment Options

Think about the target group you want to reach with your product offerings and then, if you decide upon using a PSP, choose the provider that offers the payment options that best suit your target group. Younger people, for instance, like to shop with their smartphone and prefer to pay with PayPal or Google Pay. If your customers are mainly teenagers and young adults, you should definitely consider integrating these payment options into your shop. Other customers might prefer purchase on account.


Here are the best online payment options:



According to its own information, PayPal has over 200 million users worldwide, 25.6 million of them in Germany alone. To pay via PayPal is easy and, above all, secure. The users know that they get their money back if something goes wrong with the order. Moreover, the use of PayPal is free of charge for customers. You, as a merchant, benefit from paying with PayPal insofar as the integration of this payment option in your store increases your turnover, because customers are less likely to cancel the payment process.  As you can see, there are many reasons why you should definitely integrate PayPal as a payment option in your shop.



Make sure your customers can buy on account. Because many people in Germany love to receive the goods first and then pay. Some customers prefer to try, try on or test the item pre-payment and then decide whether to keep it or return it. In the case of a return, they do not have to wait for the money to be refunded.


Credit Card, Direct Debit, Advance Payment, Immediate Bank Transfer

You should also offer these payment options: Credit Card, Direct Debit, Advance Payment and Immediate Bank Transfer. Because if you are not registered with PayPal or other payment services, you most certainly have a bank account, maybe even a credit card. Maybe there will be changes in the next few years, but currently these payment methods are an absolute must for your store. PSP like Klarna, for example, also give customers the option to pay the bill later or in installments. 


Amazon Pay

The majority of people who order goods online have already ordered something from Amazon and therefore have an Amazon account. Those who link their store with Amazon via Amazon Pay give their customers the opportunity to log in quickly, not having to reveal their own bank information again, but to pay easily via their Amazon account. This also makes it easier for your customers to pay via mobile devices.


Google Pay

Most Internet users also have a Google account. Many of them have deposited their bank details there. Since payment via Google Pay also works very easily from all devices, this is a payment option that you should not leave out.


And what else?

If you have many Apple users among your customers, Apple Pay is another payment option worth considering. There are many other payment methods available, some of which will certainly become more popular in the coming years. 


One more thing: be sure to always offer your customers free returns. Because no buyer likes to pay the postage costs if she wants to return an item if she’s not satisfied. Many people drop out of the payment process when they learn that the return is subject to a charge.