Payment Methods: 11 Types and How to Accept Each (2026)

With the rise of mobile wallets, autopay subscriptions, and other convenient payment methods, customers expect to make online purchases quickly and easily. 

One in 10 US shoppers abandoned a purchase due to a lack of payment methods, according to a 2025 Baymard Institute survey. 

Different customers prefer different payment methods, so accepting multiple payment methods is a way of reducing the risk of lost sales at checkout. Accelerated options like Shop Pay boost conversions by up to 50% compared to guest checkout. 

This guide covers the common online payment methods available to store owners, including their advantages and disadvantages.

11 payment method options

1. Credit and debit cards
2. Digital wallets
3. Buy now, pay later (BNPL)
4. Bank transfers (ACH, wire, direct debit)
5. Cash
6. Checks
7. Cryptocurrency
8. QR code payments
9. Autopay
10. Payment links
11. Loyalty points and store credit

Ecommerce store owners can accept online payments in 11 formats:

1. Credit and debit cards

Credit and debit cards are one the most common payment methods, especially for online stores. Credit card companies, including Visa, Mastercard, American Express, and Discover, extend credit to purchasers. They cover the purchase price, and customers pay their card balance monthly. 

Debit cards deduct money directly from the purchaser’s bank account.

To use either method, customers enter their payment details, including card number and billing address, at checkout.

Pros and cons of credit and debit card payments

Credit cards allow customers to make large purchases without having the cash on hand. In 2024, the value of credit card transactions was approximately four times higher than that of cash transactions for in-store purchases, according to the Federal Reserve’s 2025 Diary of Consumer Payment Choice. 

Debit cards limit spending to available funds in a shopper’s bank account, but similarly save them from having to carry cash. Bank transfers and checks take longer to process than debit card payments.

Processing fees are the biggest disadvantage of accepting credit and debit cards for store owners. The average debit card interchange fee was 0.57% of transaction value for covered transactions in 2023, according to the Federal Reserve’s 2023 interchange fee report. Credit card swipe processing fees for Visa and Mastercard averaged 2.91% in 2024, according to payments consulting firm CMSPI. 

Payments also take time to appear in the store owner’s bank account after a transaction, with the delay varying by payment processor.

How to accept credit and debit cards

To accept credit and debit card payments, store owners need a payment processor or payment gateway that supports card transactions. 

Most ecommerce platforms, including Shopify, have built-in payment processing. Store owners using third-party processors need to connect their payment gateway via their platform’s settings and confirm which card networks are supported before going live.

2. Digital wallets

Digital wallet apps run on smartphones, tablets, and smartwatches, and link to a customer’s credit card, debit card, or bank account. Payment processors can integrate some of these options into web-based checkouts, depending on the service. Examples include Apple Pay, Google Pay, and Samsung Pay.

Once a customer sets up a digital wallet account, the app stores their payment information securely, removing the need to re-enter it at checkout.

Pros and cons of digital wallet payments

Digital wallets offer convenience to consumers. They can be used at tap-to-pay terminals in physical stores and online, saving customers from repeatedly entering their card details. A Mckinsey survey found that one in five people who use digital wallets often leave home without their physical wallet.

To accept tap-to-pay transactions in a physical store, you’ll need a point-of-sale (POS) terminal with that functionality. Many digital wallet apps also place transaction limits on customers that are lower than most credit card limits, which can cap the size of a purchase.

How to accept digital wallet payments

To accept digital wallet payments, store owners need a payment processor that supports digital wallet transactions. Most ecommerce platforms support Apple Pay, Google Pay, and Samsung Pay through their native payment processing. 

For in-person transactions, store owners need a point-of-sale terminal with NFC (near-field communication) capability. Check with your payment processor to confirm which digital wallets are supported before enabling them at checkout.

3. Buy now, pay later (BNPL)

A buy now, pay later (BNPL) payment is a loan that a BNPL company extends to a customer, allowing them to purchase merchandise on credit without a credit card. Customers pay back the loan in installments. Popular BNPL providers include Shop Pay Installments, Affirm, Afterpay, Sezzle, PayPal Pay Later, and Klarna. BNPL is available for online shopping, and some physical retailers also accept it in stores.

Pros and cons of BNPL

BNPL platforms allow customers to buy merchandise without using a credit card, giving them more buying power and protecting businesses from fraud and customer payment risk. There aren’t any upfront fees to use BNPL, but late fees can add up if customers miss payments, and not all payment plans are interest-free. 

BNPL providers charge businesses between 2% and 8% of the purchase price, which can exceed what credit card companies charge.

How to accept BNPL payments

To accept BNPL payments, store owners need to enable a BNPL provider through their payment settings. On Shopify, Shop Pay Installments is available to eligible store owners in the US, Canada, and the UK through Shopify Payments.

Third-party providers like Affirm, Afterpay, and Klarna are available as apps in the Shopify App Store. Each provider has its own merchant eligibility requirements and fee structure.

4. Bank transfers (ACH, wire, direct debit)

A bank transfer moves money from one person’s or business’s account to another. In the US, transfers go through the Automated Clearing House (ACH) network or directly between banks as wire transfers. Bank transfers are most common for large purchases.

Pros and cons of bank transfers

Bank transfers are secure and don’t involve percentage-based commission fees. They sometimes carry a one-time fee for the sender, receiver, or both.

ACH transfers can take several days to clear, making them impractical for most online purchases. Domestic wire transfer fees average $25 for outgoing transfers, while international wire transfers average $45, according to NerdWallet’s 2026 survey of major US banks. 

How to accept bank transfers

To accept bank transfers, store owners need a business bank account and the ability to share account details securely with customers. 

For ACH payments, store owners can enable ACH through a payment processor that supports it, such as Stripe or Shopify Payments. 

Wire transfers require store owners to provide their bank’s routing number and account number directly to the customer. Given processing times, you’ll want to confirm that funds have cleared before fulfilling orders.

5. Cash

Cash payments are the most traditional payment method. These occur when a customer pays with paper or coin currency. Though historically associated with in-person payments, some ecommerce store owners accept cash on delivery (COD) as a manual payment method. 

With COD, customers pay when they receive their orders in person, often through a courier. Shopify Payments supports COD and doesn’t charge transaction fees for it.

Pros and cons of cash payments

Cash payments are instant and carry no processing fees, but keeping cash on-site creates a theft risk. COD also delays payment until delivery, which can complicate fulfillment for online store owners.

How to accept cash (for online businesses)

To accept cash as an online store owner, enable COD as a manual payment method in Shopify admin. Go to Settings, then Payments, and select Manual payment methods to add cash on delivery. Store owners can set COD availability by shipping zone, limiting it to local delivery areas where in-person handoff is practical.

6. Checks

Some customers still pay with paper checks, either from a personal checking account or with a cashier’s check from a bank. Checks can be sent by mail, making them more practical than cash for remote transactions.

Pros and cons of check payments

Personal checks have no purchase limits. Customers can draft a check for any amount in their bank account.

Business owners should keep in mind that personal checks carry limited fraud protection. Check processing terminals, which verify transactions quickly, cost hundreds of dollars and require a connection to a payment verification network. Many small businesses accept cashier’s checks (which are guaranteed by banks) but not personal checks for this reason. Online store owners may also need to delay fulfillment until a check clears.

How to accept checks

To accept checks, store owners first need a business bank account to deposit payments. For personal checks, a check verification service reduces the risk of bounced payments. Cashier’s checks don’t require verification. For online orders, you’ll want to hold fulfillment until the check clears, which can take two to five business days depending on the issuing bank.

7. Cryptocurrency

Some ecommerce store owners accept cryptocurrency directly through platforms like Crypto.com. Services like BitPay and Wirex also offer debit cards funded with mainstream coins like Bitcoin. Many leading digital currencies run via blockchains—systems that record financial transactions using decentralized peer-to-peer computer networking, independently of government control.

Pros and cons of crypto payments

Cryptocurrency operates outside government-backed financial systems, which appeals to customers who prefer decentralized currency or view crypto as more secure than traditional payment methods.

Compared to government-backed fiat currencies like the US dollar and the euro, cryptocurrency is volatile. The value of crypto accepted one day may be worth less the next. Crypto also has less payment infrastructure than credit cards, debit cards, and mobile payments.

How to accept cryptocurrency

To accept cryptocurrency, store owners need a crypto payment processor or gateway that converts payments into fiat currency at the point of sale. BitPay and Coinbase Commerce are two options that integrate with ecommerce platforms. 

On Shopify, crypto payment processors are available through the Shopify App Store. Review each processor’s supported currencies, transaction fees, and conversion rates before enabling crypto payments at checkout.

8. QR code payments

QR code payments let customers scan a code with their smartphone to complete a purchase. The code links to a payment gateway, where customers confirm the transaction using their preferred payment method, including credit cards, digital wallets, or bank transfers. QR codes can be displayed at checkout, in physical stores, on product packaging, or in marketing materials.

Pros and cons of QR code payments

QR codes work online and in person without a payment terminal, making them a useful option for pop-up shops and events. Some QR code payment systems connect payments directly to loyalty programs or promotions.

QR code adoption varies by region, and scanning them requires a smartphone and internet connection. Store owners also have to confirm their QR code payment system integrates with their existing checkout process.

How to accept QR code payments

To accept QR code payments, store owners need a payment processor that generates and supports QR codes. On Shopify, QR codes can be generated through the Shopify POS app for in-person transactions. For online stores, some payment processors support QR code checkout as an additional payment option. 

9. Autopay (recurring payments)

An autopay system automatically debits a customer’s bank account, credit card, or debit card on a set date. Recurring billing requires customers to have a valid payment method on file. Autopay can be used for credit card bills, utilities, charitable donations, subscription boxes, and memberships. 

Pros and cons of autopay

Autopay lets customers schedule automatic purchases without reauthorizing payments every billing cycle, which reduces missed payments.

It applies only to periodic transactions and doesn’t work for one-time purchases. Some customers may be reluctant to sign up without flexible cancellation options.

How to accept autopay/set up recurring billing

To set up recurring billing on Shopify, you can use Shopify Payments combined with a subscription app from the Shopify App Store, such as Recharge or Bold Subscriptions. 

These apps manage billing cycles, failed payment retries, and cancellations. Store owners need to configure billing frequency, trial periods, and cancellation terms before going live.

10. Payment links

Payment links are secure URLs that store owners generate and share with customers to complete a purchase. Links can be shared through email, text, social media, or chat apps. When clicked, the link directs the customer to a checkout page where they can pay using their preferred method.

Pros and cons of payment links

Payment links work across multiple channels without a full product page, making them an option for social selling, sharing invoices, and completing custom orders.

Payment links shared outside a storefront require security measures to protect customers from phishing and fraud. They may also provide a less branded experience than a full checkout flow.

How to create and share payment links

To create a payment link on Shopify, go to “Orders” in the Shopify admin and select “Create order.” Add the customer’s products, then click “Send invoice” to generate a payment link. The link can be shared directly with the customer via email or copied and sent through any channel. Payment links created in Shopify support all payment methods enabled in the store’s payment settings.

11. Loyalty points and store credit

Some ecommerce stores let customers redeem accumulated points to cover some or all of a purchase. Customers earn points based on a percentage of each order and redeem them toward future purchases. Store owners can pair points systems with loyalty programs that offer additional benefits, such as early product access or VIP events.

Pros and cons of loyalty points and store credit

Loyalty points and store credit reduce direct revenue per transaction. According to Deloitte’s 2025 Consumer Loyalty Program Survey, 72% of consumers say loyalty programs make them more likely to spend with their preferred brand, and 56% increase their spending because of the program. 

Loyalty points and store credit systems add complexity to payment processing. These programs can also reduce short-term revenue when customers pay with points instead of cash.

How to accept loyalty points and store credit

To accept loyalty points and store credit on Shopify, store owners can use a loyalty app from the Shopify App Store, such as Smile.io or LoyaltyLion. These apps manage point accrual, redemption, and store credit balances. Store owners can also issue store credit manually through the Shopify admin by going to Customers, selecting a customer profile, and adding store credit directly.

Payment methods by region

Payment preferences vary across markets. Credit cards dominate in the US, while mobile wallets, bank transfers, and cash on delivery are more common in other regions. Store owners selling internationally should plan on researching which payment methods are standard in each market.

United States payment preferences

Digital wallets accounted for 39% of US ecommerce transactions in 2024, up from 15% in 2014, according to Worldpay’s 2025 Global Payments Report. Worldpay projects that figure will reach 52% by 2030. 

Cards remain widely used, with 67% of US consumers funding their digital wallets with credit or debit cards, according to the same report

UK and Europe payment trends

In the UK, credit and debit cards are still most popular for online payments. According to Statista, credit cards account for 62.1% of UK payments, with 93% of all card transactions under £100 being contactless. Over half of UK adults (57%) used mobile wallets in 2024, according to UK Finance’s Payment Markets Report 2025.

Asia-Pacific payment methods

Mobile wallets are the fastest-growing payment method across Asia-Pacific. According to GlobeNewswire, by 2027, they’re expected to account for 66% of all POS transactions, up from approximately 50% in 2023.

How to choose the right payment methods for your business

You don’t have to choose one payment method to offer, and in fact, customers expect multiple options. The steps below cover how to decide which to offer:

1. Know your customers’ location and preferences

The countries where a store operates influence which payment methods to accept. In China, for example, Alipay and WeChat Pay are used by 77% and 67% of online shoppers respectively, according to Worldpay’s Global Payments Report 2025. 

Customer location also affects which payment processors are recognized and trusted in that market.

Reviewing order history in the Shopify admin shows which payment methods customers are using. Store owners who accepted every available payment method at launch may find some are rarely used, adding unnecessary fees or checkout complexity.

2. Understand your target audience and their habits

Store owners can identify customer payment preferences through post-purchase surveys sent with order confirmation emails, or by adding a payment preference question to email signup forms. Loyalty programs can also be used to collect this data by offering points for survey completion.

3. Compare costs and fees

Payment method fees vary and can affect margins. Some store owners exclude certain payment methods when processing fees outweigh the benefit of offering them.

When comparing payment methods, consider:

• Processing fees. Most payment processors charge a percentage of each transaction, a flat fee, or both. Compare rates across the methods you plan to offer.
• Setup and monthly fees. Some payment gateways charge monthly subscription fees in addition to per-transaction costs.
• Currency conversion fees. Store owners selling internationally may incur additional fees when accepting payments in foreign currencies.
• Chargeback fees. Some processors charge a fee each time a customer disputes a transaction.

4. Consider security and fraud prevention

Payment methods need to meet security standards and comply with local regulations. When choosing payment providers, look for:

• PCI DSS compliance. Ensures cardholder data is handled to industry standards.
• Encryption and tokenization. Protects payment data during and after transactions.
• Regional compliance. Requirements vary by market, for example, GDPR in Europe and PSD2’s strong customer authentication (SCA) for European online payments.
• Chargeback support. Some processors provide dispute management tools that reduce financial exposure for store owners.
• Shopify Protect. Covers eligible Shop Pay orders against fraud-based chargebacks automatically.

5. Test and optimize your payment mix

Checkout abandonment affects 70% of online orders, according to the Baymard Institute. Tracking which payment methods customers use, and where they drop off in the process, will help you identify where to make changes.

Key metrics to track in Shopify analytics:

• Checkout abandonment rate. The percentage of customers who start but don’t complete checkout.
• Payment method usage. Which methods customers are selecting at checkout.
• Payment failure rate. The percentage of transactions that fail due to declined cards or incomplete payment details.

Once baseline data is established, store owners can test changes to their payment mix. For example you could add a method, remove an underused one, or change the order in which options appear at checkout. 

Common mistakes when accepting payments

Store owners who accept payments online encounter a common set of problems that affect checkout completion and revenue. These are the most frequent mistakes to avoid:

1. Offering too few payment methods

According to the Baymard Institute, 10% of shoppers abandon checkout when their preferred payment method isn’t available. Accepting only one or two methods reduces the pool of customers who can complete a purchase.

2. Ignoring mobile checkout

Mobile devices account for 57% of ecommerce traffic, according to Worldpay’s Global Payments Report 2025. Payment forms that aren’t optimized for smaller screens create friction that desktop users don’t encounter.

3. Overlooking local payment preferences

According to a Morning Consult survey, half of Americans would rather abandon a purchase than switch to an alternative payment method when retailers don’t accept their first choice.

Payment preferences vary significantly by market, methods that are standard in the US may not be in Europe or Asia.

4. Neglecting payment security compliance

Store owners accepting card payments must meet PCI DSS standards set by the PCI Security Standards Council. Non-compliant merchants can face fines, increased transaction fees, and loss of card processing rights.

Store owners operating in the EU must also comply with PSD2’s strong customer authentication requirements. Non-compliance with PSD2’s strong customer authentication requirements can result in refused transactions and regulatory penalties set by each EU member state.

5. Failing to monitor payment performance

Store owners who don’t track payment failure rates may not identify processing issues until they have already affected a significant number of orders. 

6. Not reviewing fees regularly

Payment processor fees vary by card type, transaction type, and pricing model. Processors can also update their fee structures over time. Store owners who don’t periodically review their payment statements may not have an accurate picture of what they are paying per transaction.

Emerging payment trends to watch

Payment technology is changing how customers complete purchases. The developments below are shaping what store owners may need to consider when building or updating their payment strategy.

Real-time and account-to-account (A2A) payments

Real-time payments (RTP) allow funds to move directly between bank accounts within seconds, 24/7, bypassing traditional card networks. Global real-time payment transactions reached 266 billion in 2023, a 42% year-on-year increase, and are projected to reach 575 billion by 2028, according to ACI Worldwide’s 2024 Prime Time for Real-Time report. 

For store owners, real-time payments reduce the lag between a sale and access to funds, improving cash flow and simplifying reconciliation. Account-to-account (A2A) transfers, also called pay-by-bank, are a core component of RTP. They carry lower processing costs than card payments, as they bypass card network fees. 

According to Worldpay’s 2025 Global Payments Report, global A2A value is forecast to near $3.8 trillion by 2030. Juniper Research projects total global A2A transaction values will grow from $1.7 trillion in 2024 to $5.7 trillion by 2029. A2A is already the leading online payment method in markets including the Netherlands (iDEAL), Poland (BLIK), Finland, and Brazil (Pix), according to FIS. 

The EU’s Instant Payments Regulation, which came into effect in 2025, requires euro-area banks to support instant credit transfers without charging more than standard transfers—expanding RTP infrastructure for store owners selling into European markets.

Embedded finance and social commerce

Embedded finance integrates financial services, including payments, lending, and insurance, directly into non-financial platforms such as ecommerce sites and social media apps. 

The global embedded finance market reached $104.8 billion in 2024 and is projected to grow at a 23.3% compound annual growth rate (CAGR) through 2034, according to GM Insights.

Social commerce is driving adoption. US social commerce sales are projected to surpass $100 billion in 2026, per eMarketer, and Deloitte Digital’s 2025 State of Social research found that 34% of consumers say a simpler payment process would make them more likely to buy on social platforms. 

For store owners, native checkout integration and accepted payment methods within social apps are becoming relevant payment strategy considerations.

Biometric authentication

Biometric authentication uses fingerprint scanning, facial recognition, or other biological characteristics to verify identity at checkout, replacing PINs and passwords. According to a Javelin Strategy & Research survey cited by American Banker in August 2025, 47% of US consumers said they are likely or very likely to use biometric authentication at a merchant terminal.

For store owners, biometric checkout reduces friction at the point of sale and can lower fraud risk. Mastercard’s Biometric Checkout Program provides a framework that banks, merchants, and technology providers can use to offer fingerprint, facial recognition, and iris payment options in-store, according to Mastercard’s newsroom. 

Pilots have launched in Brazil, Poland, and Asia Pacific, with further rollouts planned. Adoption remains in early stages in most markets.

Central bank digital currencies (CBDCs)

A central bank digital currency (CBDC) is a digital form of a country’s fiat currency, issued and backed by its central bank. According to the Bank for International Settlements’ 2024 survey of 93 central banks, 91% were exploring either a retail or wholesale CBDC.

The Atlantic Council’s CBDC Tracker reports 137 countries and currency unions, representing 98% of global GDP, are currently exploring a CBDC, with 49 pilot projects underway. 

Three countries have fully launched a digital currency: the Bahamas, Jamaica, and Nigeria, according to the Atlantic Council’s CBDC Tracker.

The ECB completed its digital euro preparation phase in October 2025 and is now advancing technical readiness, with a pilot planned for the second half of 2027 and potential issuance as early as 2029, subject to EU legislation being adopted in 2026, according to the ECB.

How to accept payments on Shopify

Shopify Payments lets store owners accept credit and debit cards, accelerated checkouts including Shop Pay and Shop Pay Installments, and local payment methods based on the customer’s location. 

Store owners can also integrate third-party payment platforms alongside Shopify Payments. When orders are processed through Shopify Payments, third-party transaction fees don’t apply.