From Casino to E-Commerce: What Factors Influence the Popularity of Payment Methods Among Consumers?

The world is digital. We are on our phones all day and on the go (or on the couch) – so we use mobile phones more than computers, laptops or tablets. The world is not only digital, it is fast. Every industry caters to our shorter attention spans and desire for quick access and entertainment.

I have noticed this trend as technology rapidly advances in payment methods. PayPal and its competitors have made it easy, fast 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 online marketplaces and casinos allow you to pay with any preferred payment method, including but not limited to:

• Visa

• MasterCard

• Skrill

• Neteller

• Paysafecard

• Confidential

But what makes a payment method popular? I have found that there are several factors that go into this.

Convenience

First and perhaps most importantly, there is convenience. Shoppers, players and gamblers do not want to wait for payment. They want a safe, reliable and fast way to pay. That is why platforms such as PayPal – respected and proven for many years – are so widely used.

Online marketplaces like Amazon have integrated “1-Click” and similar systems that allow customers to make purchases with – yes – one click, without having to enter shipping and payment details multiple times.

Similarly, digital wallets like Apple Pay and Google Pay let you store credit and debit card details so you can quickly enter them when making a transaction or subscribing to a new service.

Security

Buyers want to feel safe, especially when they are paying large sums of money or committing to paying a company regular installments or fees. I would rather use a trusted service, regardless of the amount of money I am parting with.

Credit card companies are meeting customer expectations and encrypting their data so they can feel more secure when transacting online.

Companies like PayPal have built their reputations over the years, helping to establish their names and giving you confidence when you see their names or logos. The popularity of payment methods is a kind of self-fulfilling cycle:

• Platforms build trust

• More and more websites are using them

• More and more customers recognize the platform

• The platform builds more trust etc…

Personally, I feel much more comfortable using a trusted platform like PayPal. It’s been tested many times.

New technologies, such as fingerprint and facial recognition, now common in our phones, have also helped make payments more secure. These technologies are also fast and convenient.

PayPal also emphasises the importance of safe gambling by introducing opt-in software to block gambling sites if habits start to get out of hand. This is a great feature for any payment platform that is used to pay on iGaming sites, as responsible gaming is paramount.

Awards

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 cash back, points or miles to encourage customers to buy and keep shopping.

These incentives are widely used, especially in the travel industry, where airlines and hotels often partner with credit card companies. Benefits often include free checked baggage, priority boarding and free accommodations, so frequent travelers may be drawn to certain credit cards based on their rewards.

In the same vein, but with 2020s technology in mind, some cryptocurrency platforms now offer similar cashback rewards when customers use their cards.

Social aspects

I can’t say this was a factor that first came to mind, but many payment service providers use social media to increase their popularity.

Credit and debit card companies like Monzo have made it really easy for you to split bills with friends and send messages when you ask for or repay money. I use Monzo and it feels more social than traditional banking apps. It may sound funny, but a simple feature like sending a personalised thank you can make using an app more enjoyable.

Venmo, now owned by PayPal, even has a slogan: “Pay Your Friends.” It’s a platform specifically designed to make “settlement feel more like catching up.” Its website lists takeout and travel as examples of receipts you might want to share.

Similarly, Cash App advertises itself as a social media app in part. They actually do a few things and try to meet the needs of people interested in stocks and bitcoin, as well as more traditional banking.

Possibility of change

Like almost everything else, payment methods have changed during the COVID-19 pandemic. Contactless payments have become much more popular, and any business that hasn’t kept up with the times has been left behind.

When you travel these days, you rarely have to use cash or even tap your card on an ATM. I can’t even remember the last time I used a card. Everything is contactless, and any platform that doesn’t keep up with this development has no chance of survival.

This aspect could fit under the “convenience” factor, but it really deserves its own section. When was the last time transactions went through such a revolution? Go back even 15 years and it would be hard to imagine how we pay for everything now.

So what is the final word?

There are several factors that influence the popularity of a payment method, including its ability to change over time, its social inclusion, its rewards, and how safe customers feel using it. But the biggest factor may simply be convenience. We’ve become so used to everything being fast these days—and paying for things has never been faster.

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