In today’s increasingly digital world, most payments are made online. Retail spending largely takes place online and with the rise of delivery services an increasing amount of grocery purchases are made online as well. Services like hair cuts or landscaping can be paid for online before an appointment. Most of our at home entertainment comes in the form of subscription services — for movies, games, and music — that is also paid for online.
In the early days of online payments we were limited to using our credit or debit cards. Then PayPal was introduced and the industry was shaken into action. Now that mobile phones have become an essential part of our daily lives, we’ve seen a second generation of new online payment methods. New methods address issues like security, convenience, international use, and general accessibility.
With the rate of innovation and the continued launch of new ways to make payments online, it’s easy to lose track of them all. This article will provide a quick look at some of the most popular online payment methods in 2024.
Credit/debit cards
The old reliable plastic. Credit and debit cards were the first online payment method and they remain one of the most popular. Even knowing the risks of using them online, most people continue to use their cards to make purchases and have them saved to pay for recurring costs like utility bills or subscriptions.
Credit and debit cards partially retain their place as the most widely used online payment method because of how popular they are among older generations. There is some evidence that Gen Z has been using debit cards at an increasing rate, so it will be interesting to see how this progresses in the next few years.
E-wallet
The use of e-wallets, also known as digital wallets, has become very common in the last five years. E-wallets remove the need for a physical card by creating a digital version that is then stored in an app on your mobile device. Unlike cards which are easy to accidentally leave behind or easily stolen, e-wallets are much more secure.
Since e-wallets are generally linked to the mobile device that you use, the most popular ones are the ones provided by Apple (Apple Pay), Google (Google Pay), and Samsung (Samsung Pay). One of the other perks of e-wallets is that they can also be used to store other cards as well. This includes membership cards, travel tickets, boarding passes, and more.
Pay by phone
One of the newest and most unique online payment methods is pay by phone. Instead of paying for goods or services immediately using a bank account or payment app, the cost is added to your monthly phone bill. The leading pay by phone service is Boku. Like other pay by phone services, Boku isn’t a bank or payment app. It’s a payment facilitator. Using services like Boku keeps your bank account details protected because the pay by phone provider acts as bridge between your payment and the company you’re paying.
Pay by phone has become a particularly popular method for making payments at online casinos because of how convenient and secure it is. The fact sheet at NewCasinos.com for pay by phone payment methods can fill in any more details for those who are unfamiliar with this new way to pay.
Payment Apps
Payment apps are sites and apps that people can use to make payments online. Some of these are directly linked to the user’s bank account while others don’t require a bank account to open. Not requiring a bank account makes these payment apps great for people who don’t have consistent access to traditional banking services. If you’ve asked yourself, can I use sezzle on amazon?, you can do so by using the Sezzle Virtual Card, which allows installment payments for eligible items on Amazon.
PayPal was the first payment app and it remains the most widely used. They have even launched other services to expand how useful the app is. These include wire transfers, a cryptocurrency trading platform, coupon and discount programs, and a charity giving option.
Payment apps often have a limited region where they are accepted. Venmo, for example, is popular in the United States but not accepted elsewhere in the world. This has resulted in a huge number of payment apps, catering to different international markets all over the world. Some of the leading payment apps are Zelle, Wise, Skrill, Cash App, Remitly, and Revolut.
Cryptocurrency
Cryptocurrency has been slowly but steadily gaining ground as an online payment method since Bitcoin first appeared in the mainstream. Initially there were very few uses for cryptocurrencies as most companies were uncomfortable with a financial technology they didn’t understand and unsure about the lack of regulation.
As more people invested in cryptocurrencies and the coins on the market diversified, it became more widely accepted by online businesses. The volatility of the market was accepted as simply part of the cryptocurrency experience and steps were taken to match pricing to these fluctuations.
Cryptocurrency hasn’t become totally commonplace yet but it’s important to include on our list since decentralized and deregulated currencies are likely to become a major part of our financial world.
