In today's retail landscape, online sales have become the dominant trend, and the proportion of online sales has steadily increased. Many businesses with physical stores are looking to expand their business by venturing online to increase sales. When starting an online business, a key aspect to consider is how to collect payments from customers efficiently.
There are several electronic payment (e-Payment) options on the market today. Choosing a payment method that’s convenient and popular with your customers can significantly increase your sales. However, it’s equally important to consider payment processing fees. Here are some top tips for setting up online payments for your e-commerce business:
Choose an E-commerce Platform
In a previous article, we discussed How to Choose eCommerce Platforms in Hong Kong. While e-commerce marketplaces offer a comprehensive package that includes e-payment services, they often come with high setup fees and commissions on each product sold. Building your own website allows you to sell products, create your brand image, and enhance customer interaction.
Popular E-commerce Payment Methods in Hong Kong
Credit Card / Debit Card
Debit cards are directly linked to customers' bank accounts, with funds deducted immediately upon payment. Credit cards, on the other hand, provide customers with a line of credit, allowing them to borrow money for purchases and pay it back later.
Digital Mobile Payment (E-payment)
Digital mobile payments enable customers to make online purchases using their mobile devices. Customers can top up their e-wallets through various methods, such as credit/debit cards, bank accounts, or designated channels like convenience stores.
The most familiar e-payment in Hong Kong include Octopus, PayMe, Apple Pay, Google Pay, Alipay and WeChat Pay. The advantages of e-payment are ease of use and instant payment.
Bank Transfer
Traditional bank transfers require merchants to provide their bank account details. The Fast Payment System (FPS) in Hong Kong offers a real-time online transfer and payment platform that is seamlessly connected to banks, allowing customers to make instant payments by entering the merchant's phone number or email address..
How to Choose a Suitable Online Payment Method?
Transaction Speed
Compared to traditional payment methods such as bank transfer (except FPS), e-payment provides instant confirmation which speeds up order processing time.
Service Scope
Merchants should select payment gateways that support transactions in their target markets. For international sales, consider using payment gateways like PayPal, Stripe, or Wise that support multiple currencies. For local transactions, popular digital mobile payments such as PayMe, Apple Pay, Google Pay, Alipay, etc., can be beneficial.
Handling Fee
Merchants should compare the handling fee by different payment gateways. Providers usually charge a percentage of each transaction and some may also have a setup fee at the beginning. Merchants handling high sales volumes may be able to negotiate lower rates with providers.
Setting up an E-commerce business requires selecting a secure payment gateway, integrating it with your e-commerce platform, and ensuring compliance with security standards. A good product and an optimized checkout process can significantly enhance the customer experience.
Contact us today and we will provide you with professional consulting and technical assistance.
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