Best Online Payment Modes for eCommerce Payments


The internet revolution has steered e-commerce platforms towards optimum functioning and helped enhance their customer base over the past decade. Thanks to technological evolution, the dynamically changing world of shopping and payments is making eCommerce a household phenomenon.

As consumers of all ages continue to embrace a tech-oriented lifestyle, their payment preferences are now led by tech-supported, easy-to-use methods that can be completed in a single tap on the go. Consumers are flocking towards e-commerce platforms that cater to an array of payment modes via secure gateways.

Through the best payment gateway applications, merchants can offer payment modes like online payment links amongst other conventional forms of payment like credit and debit cards that help customers and businesses save time.

As checkout is a crucial stage in the order fulfillment process, an effortless payment experience for the customers is the final nudge towards conversion. In order to stand out from the competitors, businesses must team up with the best payment gateway platform to offer diverse and unique payment methods that customers find convenient.


Most popular payment methods in eCommerce

A variety of payment methods are used across the country, giving customers the freedom to choose the payment mode that best suits them.

Offering diverse payment options has become imperative for businesses to stay relevant. Customers are likely to abandon the transaction if their preferred payment mode is not present on a payment gateway. While some customers may want to put the expense on their credit card, some may want to make it using the funds in their eWallet or choose the Pay Later option in case of a shortage of funds.

Here is a closer look at each payment method offered by the best payment gateway in India.

1. Credit Cards

An increasing number of Indians are signing up for credit cards with multiple banks offering pre-processed cards with no fees. According to Statista, Indian banks issued 4 lakh new credit cards in March 2021 itself and the Indian credit card market is slated to grow at 25% CAGR by 2025. Features like credit payments at no extra cost, reward points, and cashbacks make credit cards an attractive payment option for countless Indians.

When using a credit card, customers can securely make payments in just a few steps by entering card details and an OTP. American Express, MasterCard, and Visa are some globally trusted credit card networks.

2. Debit Cards

Debit cards are considered one of the most preferred options for eCommerce payments. When a shopper pays with a debit card, the amount is directly deducted from the savings bank account linked to the card.

With credit cards, the actual amount is payable only at the end of the credit card’s billing cycle, and so buyers may end up shopping for more than their budget and even indulge in impulse buys.

3. UPI / Payments Apps

A July 2021 report by Statista pegged UPI as the most preferred and used online payment method with over 40% of Indians picking UPI over other payment modes.

Unified Payment Interface, commonly known as UPI is an online payment system where an individual’s multiple bank accounts are linked to a single mobile application. Users can connect the UPI app to their respective bank accounts through the registered phone number and set a PIN to authorize payments. At the time of purchase, customers can zip through payments by simply entering their PIN. The amount is debited directly from the bank account used for the transaction.

Compatible with Android and iOS, UPI facilitates immediate money transfers around the clock. UPI’s added security features protect the user from fraudulent transactions and scams.

Ecommerce platforms must have an integrated UPI option in their payment gateway to capitalise on the power of UPI as India’s favorite payment option.

4. eWallets

An electronic wallet is a software that runs on a device and stores the user’s digital currency, enabling quicker online transactions.

eWallet is a relatively newer payment method that works like a physical wallet but is safer and more convenient. It is a digitized version of a physical wallet via which customers can add money to their e-wallets and use it for quick payments on apps or online stores. Customers can link their bank accounts, credit, and debit cards with the wallet to withdraw funds within seconds.

Many online merchants have in-store e-wallets to encourage customers to shop again by offering cashback. E-wallets also facilitate swift refunds as the amount can be reverted to the customers’ wallets instantly.

5. Pay Later

The Pay Later option has revolutionized the payments industry, giving buyers the option to buy now and pay later. It has become a popular payment method for young spenders who enjoy making payments on credit without paying any extra charges. Pay Later has also led to an increase in the purchasing power of young earners who also have access to substantial disposable income. It is a great option for eCommerce platforms looking to cater to the massive base of young buyers.

Streamline online payment modes with Payment Gateways

Payment gateway providers enable merchants to streamline all payment collection methods. Payment applications connect banks, merchants, and customers to verify and optimize the transfer of funds. The best payment gateway platforms offer frictionless integration of different payment methods on the payment gateway of a website/app.

Payment gateway platforms offer instant payments via an assorted range of payment modes. Merchants can integrate all payment options directly on the store website or app by setting up a single payment gateway. The use of an online payment link also helps direct a customer towards a host of payment options under a single umbrella.

With the added feature of online payment links, retailers can track payment status, automate reminders, and accept payments from e-wallets, net banking, UPI and card purchases–all in one place. Using payment gateway platforms, online retailers can collect payments swiftly under one roof.

Why should online stores offer different payment methods?

With cart abandonment rates at an all-time high, a seamless and quick checkout experience can help push customers towards completing the transaction. As per a 2019 study, cart abandonment sits at 51% in the Indian eCommerce space. One of the top reasons for cart abandonment is a lack of preferred payment options on payment gateways. When payment convenience is a high priority for shoppers, both online and offline, it makes sense for merchants to support a variety of payment solutions on their payment gateways.


Offering various payment methods helps online stores cater to a vast audience. Each customer is likely to choose a specific payment method based on their psychographics and demographics. Businesses can tap into a wider customer base by offering a slew of online payment methods where there is something for each customer to choose from.