[To maximize sales] What is EC payment? 8 payment methods and strategic points for selection

EC payment is a payment way to pay on your e-commerce site. In this article, we'll thoroughly explain the key payment method used in e-commerce payment, effective selection points to prevent lost opportunities and increase sales, and how to use payment processing services.

As the e-commerce market continues to expand, it is important for e-commerce businesses to prevent churn at the payment point of view in order to increase sales on their e-commerce sites. Because research shows that if a customer doesn't have the payment method they want, a surprising 70% of users will leave without payment.

In this article, we'll thoroughly explain the features of e-payment payment methods, the strategic points to consider when choosing a payment method that maximizes sales and prevents lost opportunities, and the benefits of leveraging payment processing services that are essential for achieving this.

EC payment is the most important process for paying on an e-commerce site

EC payment is a payment way for customers to pay for goods or services on your e-commerce site. There are various payment method such as credit cards, electronic money, CVS Payment, buy now pay later, etc.

To ensure the success of your e-commerce site, it is essential to have multiple payment method tailored to your customer base and offerings to meet the needs of a wide range of customers and improve completion rates. In particular, this is the most important measure to prevent lost opportunities.

According to the "payment method Usage Intention Survey 2025" conducted by GMO Payment Gateway, Inc., about 70% of users will leave without payment if they do not have the desired payment method on the e-commerce site. In other words, increasing payment method is an important measure that prevents lost opportunities and is directly related to sales. To improve purchase completion rates, it's essential to tailor payment method to your target audience and products.

It affects the sales of e-commerce sites! Eight main payment method

EC payment uses a variety of payment method. We will explain the characteristics of each of the eight main payment method and the advantages and disadvantages of the business side.

Credit card payment

Credit card payment is the most utilized payment method of the EC payment. Since it can be payment immediately, the risk of non-collection on the part of the business side is low, and it is suitable for selling high-value products because it can be paid in installments. In many cases, customers do not charge fees for purchases, and many credit cards can receive points back depending on the amount spent, making it a relatively easy payment method to choose.

However, it is essential for operators to take measures against risks such as fraud and chargeback. Credit card payment may also deny fraud or payment if there is any use beyond the availability quota.

The percentage of how much a Credit card payment is approved by the card company is called the "payment approval rate" and so on. The formula is "payment Approval Rate (%) = Number of successful transactions with payment ÷ Number of transactions × 100 for which the customer attempted to payment". Card companies tend to reduce the payment approval rates of businesses that are considered to be at high risk, and they need to understand their payment approval rates and take appropriate measures to ensure stable sales.

For more information about Credit card payment, see the following articles:

CVS Payment

CVS Payment is an easy payment method for younger people or customers who don't have a credit card. It is convenient to pay 24 hours a day at convenience stores nationwide, but it takes the trouble of going to the store for customers. Businesses have the advantage of being able to ship and provide products and services after confirming the price, avoiding the risk of non-collection. For e-commerce sites targeting young people, it is payment method highly effective as a countermeasure against cart dropout.

Cash on delivery

Cash on delivery is a payment method of paying cash to the delivery person when you pick up the item. However, customers must be at home at the time of pickup, and there are also fees, so the convenience is not as high as other payment method. While businesses have the advantage of avoiding the risk of non-payment, fees to delivery companies tend to be higher than others, so it is necessary to consider the cost aspect when introducing it.

Carrier payment

Carrier payment is a method of paying in addition to the mobile phone bill and is expected to be used by younger payment method. It can be used without a credit card and requires only simple authentication to complete payment, which is especially effective for driving young people to purchase digital content and small products.

However, it is important to note that it is only available to major carriers such as Docomo, au, Softbank, and Y-Mobile, and is not available to low-cost SIM users. For businesses, the disadvantage is that the commission rate is higher than that of credit cards, but it may be worth considering introducing it if you deal with products for young people.

buy now pay later payment

buy now pay later payment pays for the product after it is received, so customers can buy with confidence. It can be used even if you do not have a credit card, and it is a payment method that can meet the needs of "wanting to payment after actually seeing the product". In addition, services such as atokara allow customers to change their payment according to the situation at the time, such as installment payment or immediate payment, which also contributes to the need to properly manage spending and the need to purchase high-value products.

The payment is collected from the buyer by the buy now pay later payment provider, which greatly reduces the risk of the business not being collected.

Bank transfer

Bank transfer is a payment method available to a wide range of age groups. Both upfront and buy now pay later are available, and some customers may not incur any fees. The disadvantage of the business side is that it involves the time and effort of clearing the balance such as accounts receivable and confirming the payment. In addition, since the time to receive money varies from customer to customer, it is necessary to pay attention to managing the timing of fast product shipment.

E-money payment

E-money payment is a way to payment digitized money using smartphones, IC cards, etc. Depending on the issuing company, it is broadly divided into transportation systems such as Suica and distribution systems such as nanaco, and there are three types of payment methods: prepaid (prepaid), debit (immediate payment), and postpaid (buy now pay later). While it is suitable for small payment and is easy to choose by customers who want to earn points, it is often payment method difficult to use for expensive products due to the payment has a maximum amount.

Identity payment (Account payment)

ID payment (Account payment) is a method of payment with major service accounts such as PayPay, Amazon Pay, and Rakuten Pay. From the end-user's point of view, it is used as an account-linked payment method, and depending on the service, it also includes payment using QR codes.

ID payment (Account payment) is the most likely to improve completion rates because it doesn't require an address or card information, making it easier for users to drop carts and leave without completing their purchase. Customers can use their personal information without registering it on the e-commerce site, which has the advantage of reducing the risk of information leakage. Sales can be expected to increase due to the expansion of the number of users, and it is a payment method worth considering introducing.

payment method Adoption Strategies for Maximizing Sales: 4 Decision Points

When choosing the right payment method for your e-commerce site, it's important to understand the following four points.

Target audience

When implementing payment method, it's important to deeply analyze your target audience before choosing payment method. Different age and gender have different payment method preferences, so understanding the characteristics of your target audience and selecting payment method can help you achieve cost-effective adoption.

Combining product characteristics with optimal payment method

The payment method that is suitable depends on the characteristics of the product or service you handle. It is important to analyze the price range and type of product before making a selection.

Cost and Security

When deploying payment method, you need to consider both cost and security considerations. It's important to comprehensively evaluate not only the short-term costs but also the long-term cost-effectiveness and security risks.

Specifically, we estimate the total amount of upfront and monthly costs, as well as payment fees over time, to verify cost-effectiveness. The commission rate varies by payment method, so you need to choose the best combination based on your trading volume and unit price.

Also, check the introduction Actual and security standards, such as PCI DSS, which is an international security standard by five international card brands, Privacy Mark, and ISMS certification, and also check whether you can take measures against chargeback and fraud.

Deposit cycle

The deposit cycle affects cash flow, so you need to check it carefully when implementing payment method. Especially if you value cash flow, it's important to choose payment method or services with short deposit cycles.

In addition, if you choose a service that allows you to centrally manage your bank account, you can improve the efficiency of your accounting operations. By using payment processing services, you can manage multiple payment method at once, which will greatly reduce the hassle of managing payments.

Solve implementation, operation, and security issues in one place with payment processing services

If you're implementing EC payment, consider using payment processing services. payment processing services is a service that allows you to deploy and manage multiple payment methods at once, eliminating the need for businesses to contract separately with payment service providers. Some services offer more than 40 types of payment method in a single contract, making deployment and operation more efficient.

Another great benefit of payment processing services is that it also has the latest security measures and fraud detection capabilities, so you can build a secure payment method without expertise. Reduce the hassle and cost of managing multiple payment method separately, and create an environment where you can focus on your core business.

When choosing a payment processing services, consider the types of payment method available, Actual reliability, security measures, and pricing. It is also important to have a support system in place that allows you to respond quickly if a problem occurs during implementation or operation.

GMO Payment Gateway, Inc. was the first payment processing industry to receive the "HDI Support Center Certification (Seven Star Certification)" from HDI, the world's largest international organization for IT support services. We have also received three stars in the HDI rating benchmark "Quality Rating", so you can trust us with your support.

If you want to introduce EC payment with peace of mind, "PG Multi-Payment Service"

EC payment is a critical factor that directly affects customer buying behavior, and multiple payment method can prevent missed opportunities. payment processing services streamlines the deployment and management of multiple payment method, helping to increase sales and delight customers.

GMO Payment Gateway offers a rich range of industry-leading payment method, from Credit card payment to CVS Payment to QR code payment. In addition, we are fully compliant with the international standard PCI DSS and meet advanced security standards, and we have built a complete support system that has been awarded the "HDI Support Center Certification (Seven Star Certification)" for the first time in payment processing industry.

If you are considering implementing EC payment, please contact us.