From Casino to eCommerce, What Factors Determine the Popularity of Payment Methods Among Consumers?

The world is digital. We’re on our phones all day, and on the move (or on the couch) – so we use mobiles more than PCs, laptops, or tablets. Not only is the world digital, but it’s quick. Every industry is catering to our shortening attention spans and desire for quick access and entertainment.

I’ve noticed this trend, along with rapid advances in tech, impacting payment methods. PayPal and rivals have made it easy, quick, and safe to quickly pay for items and services online.

Most reputable sites offer similar payment methods, because their customers will trust what they know. Many marketplaces and online casinos let you pay with any payment method you prefer, including but not limited to:

• Visa

• Mastercard

• Skrill

• Neteller

• Paysafecard

• Trustly

But what makes a payment method popular? I’ve found there are several factors that influence this.

Convenience

First and maybe foremost is convenience. Shoppers, gamers, and gamblers don’t want to wait around to pay. They want a safe, reliable, and quick way of paying. This is why platforms such as PayPal – well respected and proven over many years – are so widely used.

Online marketplaces such as Amazon have integrated “1-Click” and similar systems, where customers can make purchases with – yep – one click, without the need to repeatedly enter their shipping and payment information.

In the same vein, digital wallets like Apple Pay and Google Pay allow you to store credit and debit card details so that they can be quickly entered when checking out or subscribing to a new service.

Security

Shoppers want to feel secure, especially when they are paying large sums of money or committing to paying a company regular instalments or fees. I’d much rather use a trusted service, no matter the amount of money I’m parting with.

Credit card companies are catering to customers’ concerns by encrypting their data, which can help make you feel more secure during online transactions.

Companies like PayPal building their reputation over time has helped establish their names and gives reassurance when you see their names or logos. The popularity of payment methods is a kind of self-fulfilling cycle:

• Platforms build trust

• More websites use them

• More and more customers recognise the platform

• The platform builds more trust, and so on…

Personally I feel much more comfortable using a trusted platform such as PayPal. It’s been tested time and time again.

New technology such as fingerprint and facial recognition, widely used on our phones now, has also helped make payments more secure. These technologies are also quick and convenient.

PayPal also emphasises the importance of safe gambling, having introduced opt-in software for blocking gambling sites if habits start to get out of hand. This is a great feature for any payment platform that is used to pay at iGaming sites, since responsible gambling is paramount.

Rewards

While it may not be as intuitive as customers wanting convenience and security, another factor that drives popularity is the potential for rewards. Credit card companies offer cashback, points, or miles to incentivize customers to buy and keep buying.

These incentives are widely used, particularly in the travel industry, where airlines and hotels often partner with credit card companies. Perks often include free checked bags, priority boarding, and complimentary accommodation, so people who travel frequently can be drawn to certain credit cards depending on the rewards.

Along the same lines but with more 2020s tech, some cryptocurrency platforms are now offering similar cashback rewards when customers use their cards.

Social aspects

I can’t say it’s a factor that sprung to my mind initially, but a lot of payment providers draw on social media to drive their popularity.

Credit and debit card companies like Monzo have made it very easy for you to split bills with friends, and send messages when you ask for money or pay it back. I use Monzo and it does seem more social than traditional banking apps. It might sound funny, but a simple feature like sending a personalized thanks can make apps more enjoyable to use.

Venmo, a company now owned by PayPal, even has the tagline “Pay friends”. It’s a platform specifically designed to make “settling up feel more like catching up”. Their website gives takeouts and travel as examples of bills you might want to share.

Similarly, Cash App markets themselves in part as a social app. They do a few things, actually, and try to cater to people interested in stocks and bitcoin, as well as more traditional banking.

Ability to change

Like just about everything else, payment methods changed during the COVID-19 pandemic. Contactless payments became way more popular, and any company that failed to move with the times got left behind.

When you’re travelling nowadays, you rarely have to handle cash or even press a card against a machine. I can’t even remember the last time I used a card. Everything’s contactless, and any platform that isn’t keeping up with this development can’t hope to survive.

This aspect could fit into the “convenience” factor, but really it deserves its own section. When was the last time transactions underwent this kind of revolution? Go back even just 15 years and it’d be hard to imagine how we pay for everything now.

What’s the final word then?

There are several factors that influence a payment method’s popularity, and they include the ability to change with the times, incorporation of social aspects, rewards, and how secure customers feel using that method. But the biggest factor may just be convenience. We’re used to everything being quick now – and paying for things has never been quicker.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.