The Best Online Payment Systems in 2023

How Payment Methods Are Evolving

Cash has long been going out of fashion. Many people find it inconvenient… and trying to find a cash machine as and when you need it is no joke. Moreover, people are simply doing more online now…. Buying goods, ordering services, playing games, booking tickets and more. What's more, with the pandemic and fintech advancements, online transactions are now the norm rather than a passing fad. So, there have been many advancements in the number of convenient ways to pay to keep up with this.

Preferred payment methods are generally influenced by demographics. According to research, Gen Z and Millennial shoppers pay for most of their goods on their mobile with in-app purchases particularly favoured among these age groups. But what other options are there for those that don't always want to pay by mobile?

Here, we look at some of the best and most popular online payment platforms for the online consumer in 2023…

Credit and Debit cards

For the majority of older consumers, debit and credit cards are the most popular ways to pay for goods and services online.

However, the popularity of credit card spending differs among countries and age groups - Millennials and Gen Z shoppers hold 14% fewer credit cards compared to previous generations. Generally, most people prefer to pay with debit cards - along with alternative options such as digital wallets and account-to-account payments.

Digital Wallets

Digital or mobile wallets are increasingly favoured by businesses and customers as an online payment option. They are fast and secure, which means that businesses that rely on speed, such as fast withdrawal casinos, prefer this payment method.

While PayPal's popularity has decreased over time, newer digital payment providers like Skrill and Revolut are starting to become ever more used. With more companies accepting this type of payment - and more consumers having access to them, these are set to overtake credit and debit cards in terms of dominance. Moreover, smartphone users widely use Apple Pay and Google Pay for both online and in-person purchases - which is done at just the tap of a phone.

Bank Transfers

With better technology and procedures in place, bank transfers aren't as slow and cumbersome as they used to be. According to research conducted, bank debit emerged as the preferred option for recurring online payments in several countries including the UK, France, Germany, New Zealand, and Australia. According to these studies, around 27% more consumers use bank accounts and debit cards now over PayPal, apparently appreciating the ease of use, automation and wide acceptance of bank debits.

Buy Now, Pay Later

It's easy to see the appeal… although you obviously need to be careful if you keep using this method of payment.

While the concept of paying for purchases in instalments isn't a new one, providers such as Klarna have significantly boosted the popularity of Buy Now, Pay Later (BNPL) as an online payment method. These payment platforms cover the upfront cost and then provide you with an interest-free instalment plan to repay it, normally over 3 or 6 months. BNPL has gained considerable traction - indeed, over 9 million shoppers stated that they would avoid retailers who don't offer this as an option.

Is Cash Dead?

With the plethora of payment options available these days, is cash even relevant anymore? Especially with more people making transactions online… Do we actually need it? Three years ago, in 2020 cash accounted for a mere 17% of e-commerce transactions, making it the least favoured payment method - and we can only imagine that this would have dropped even more since then.

The impact of the pandemic has further accelerated this decline- and most countries have shown very little interest in trying to reverse this trend - with most encouraging it… and many places not accepting cash at all. The world is starting to become a digital payment only landscape.

The good news is that there are plenty of options out there…. And you can still make purchases in a way that is convenient to you, whether it be a credit card, debit card, bank transfer, digital wallet or some other way. What's more, with the rise of cryptocurrencies, it looks like there's no going back.