What are the most popular online payment methods?
Paysafe’s Inside the Wallet research report has uncovered which payment methods people are using most often to pay online – and the reasons why.
It’s critical for businesses to be up to date on which online payment methods are most popular. By staying informed about how customers are choosing to pay, you can make better decisions to improve the transaction experience and increase sales.
Our Inside the Wallet report reveals how consumer spending and saving habits have shifted in 2024. Based on polling of 14,500 consumers in Europe, North America and Latin America, the research highlights which payment options are most loved by shoppers and the factors driving their popularity.
Here’s an overview of the top online payment methods according to the survey results.
The most popular online payment methods in 2024
Card payments remain the most common way for consumers to transact. Nearly half (49%) of consumers have used a debit card in the last month and 28% have used a credit card.
While card payments dominate, paying by bank transfer or digital wallet is a top choice for some. 17% of consumers have used bank transfers for most of their online transactions and 11% have used digital wallets.
Interestingly, the popularity of certain payment methods changes based on what someone is paying for. For example, when asked which payment methods they had used for gaming or gambling purchases, fewer had paid by debit card (38%) and more had chosen digital wallets (16%).
How payment method popularity is changing
The survey also asked respondents which options they were using more often than a year ago. The results reveal which online payment methods are rising in popularity in 2024.
While debit cards still come out on top, consumers are more likely to have increased their use of bank transfers (39%) than credit cards (33%). Digital wallets are also experiencing growth, with around one-third (32%) choosing this option more often.
What’s driving people’s payment choices?
Security is the top factor affecting how consumers choose to pay, with more than half (54%) saying they opt for payment methods they trust. Other big factors influencing how people pay include convenience, the variety of payment methods on offer, and the speed of the transaction.
Depending on someone’s age, certain factors are more likely to matter to them. Older consumers are especially security conscious, with 60% of those aged 60 and over selecting a payment method because they perceive it to be safe. Meanwhile, younger people were more likely to care about the speed of a transaction, with 37% considering it an important factor.
The key takeaways for businesses
With 43% of consumers abandoning their online shopping cart when their preferred payment method isn’t available, it’s important for businesses to respond when their priorities shift. Here’s how businesses can act on these findings.
Communicate security steps to consumers
Two-thirds of consumers reported feeling much better shopping online when they know there are security steps in place to protect their data. So, collaborate with your payment provider to get watertight security measures in place and communicate these with your customers.
Ensure checkout is quick and easy
Embedded payments that seamlessly integrate with businesses websites and mobile apps are vital for a great checkout experience. Also, consider tactics that work to speed up the process, like guest checkouts and one-click payments for repeat customers.
Offer a variety of payment methods
In addition to card payments, global businesses must offer bank transfers and digital wallets to cater to a diverse customer base. This is especially important for merchants in certain industries – of consumers who had made a video gaming or iGaming payment in the last month, close to half (49%) had used a payment method other than cards.
Responding to shifts in popular payment methods
Understanding which payment methods are popular is crucial knowledge for payment providers and merchants. Armed with this information, you can make informed decisions on how to optimize the payment experience and maximize sales.
It’s also crucial to know what’s driving consumers’ payment preferences. With security and convenience top of mind for many, businesses must invest in developing frictionless checkout journeys that reassure customers that their money is safe.
