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E-WALLETS -  CHOOSING A PAYMENT SERVICE PROVIDER

+ E-Wallets offer simple and uncomplicated options for payment processing and quick money transfers.

+ E-Wallets are relatively expensive for retailers compared to other methods of payment.

+ Many providers are available locally or regionally.

+ In Germany, world leader in payment Paypal is joined by other E-Wallets such as Skrill, Neteller and Payza.

 

ADVANTAGES OF E-WALLETS

advantages e-wallet

The checkout process is the biggest advantage of payment per E-Wallet. This offers a high conversion rate, as it is a very pleasant and uncomplicated for customers.

The transfer of the payment to the retailer after payment is processed immediately. A further advantage for the retailer. The order can then be processed quickly and sent out immediately.

In addition to this, E-Wallets are optimal for subscription and installment payments, because these can be processed quickly and easily.

An advantage for the customer is that they do not have to give any financial data to the retailer upon payment. Bank and credit card data are entered once and stored in the E-Wallet account. When the customer pays at an online checkout later, the required verification includes only his email address and password for his E-Wallet account.

 

Find the right payment service provider for your target region

There are different providers for E-Wallets and often, providers are only available in certain countries or regions. Therefore, it’s important to be well informed on which E-Wallets are available and popular in your shop’s target region or country, so that you optimize the experience for your customers chosen method of payment. For example, the provider Qiwi is only available in Russia, and the chosen E-Wallets of China include Allpay and We Chat Pay.

 

DISADVANTAGES OF E-WALLETS

disadvantages e-wallet

Payment per E-Wallet has many advantages, but there are also some disadvantages to be considered. Firstly, the online retailer must also open an account with the E-Wallet provider they would like to offer to their customers as a payment method. That means that that the online retailer must take the time to create an account and maintain it.

A further disadvantage is that the usage of an E-Wallet provider can be expensive compared to other payment methods. Therefore, you should take the time to consider how sensible this option is for your shop.

Are E-Wallets the future of online payment?

The future of E-Wallets is still to be determined. Will other E-Wallets gain as much popularity as Paypal? Currently, Paypal dominates the E-Wallet brand. However, many different brands of E-Wallets are gaining steam - they are used to pay for many things, from online subscriptions to newspapers to eBay orders - especially small amounts.

Currently, small transaction sums display the strength of the E-Wallet, as paying with credit card is often not economical when making a small payment. E-wallets are incredibly secure and offer a minimized risk of fraudulent activity compared to credit cards as well. As the wallet is already loaded with money, it is no longer necessary to give out bank or card information when purchasing products. The amount that can be stolen from the user is limited to the amount of money that is in their E-Wallet at the moment the account is compromised.

PSP for E-Wallets - what should you look out for?

Would you like to offer your customers the possibility to pay by E-Wallet in your online shop? There are a few things to look out for when choosing a payment service provider. Most importantly, you should choose a PSP that is optimal for the countries you wish to sell to. Of course, it’s never a bad idea to choose a provider like Paypal that gives you coverage all around the globe, although businesses who engage in cross-border e-commerce should most definitely learn about local and regional E-Wallet providers. In the German market, Skrill, Neteller and Payza are also popular.

Take advantage of our free consulting

Are you looking for an optimal payment method and PSP for your online shop? Don’t hesitate to contact us. The payment experts at Paylobby are happy to help you with anything that has to do with payment for your e-commerce business.

Together, we will find your optimal payment service provider. The goal is to find a business solution both ideal for your current business situation and that can be expanded in the future.

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