Comparison of Payment Methods: Standard Payment vs. Quick Payment

ecommerce payment options online shopping
Author: Haydar Yuece // 10min

The topic of payment methods in the online shop is a concern for many online merchants, because even an otherwise optimised shop does not unfold its full potential if the appropriate payment methods are not offered. Around 16% of customers abandon a purchase if they do not find their preferred payment system. Mobile payment methods, for example, offer new possibilities. One more reason to take a closer look at the common payment methods in e-commerce.

Payment Methods Germany ecommerce

However, the triumph of wallets such as PayPal and Amazon Pay remains unbroken and will continue to play an increasingly important role in e-commerce payment methods in the near future. Already 93% of all top 1,000 online shops have firmly established wallet payment methods, which clearly indicates where the trend is heading.

It also shows that more and more online shops are responding to the needs of users and want to make the path to purchase as uncomplicated as possible. According to the current 2020 study, 40% of the retailers surveyed offer an express checkout and 31% have this in the pipeline. Likewise, the optimisation of mobile payment processes is currently a big topic: 80% of the surveyed retailers have already fully or at least partially optimised their payment process for mobile devices. This also makes sense considering that, according to current projections, the number of online shoppers in Germany is expected to rise to 68.2 million by 2024 and that 58% of all people in Germany have already made an online purchase via their smartphone or tablet in 2019.

At this point, it can be stated that in the near future, e-wallets such as PayPal and Amazon Pay as well as payment via mobile devices will become increasingly important. For many SMEs in particular, this means that it is time to upgrade.

Payment Methods: Standard vs. Quick Payments

In the following we want to give an overview of the common payment methods in e-commerce and show the current relevance for online merchants.

Standard Payments

Purchase on Invoice

With purchase on account, the customer can buy goods, have them delivered and then settle the bill himself by bank transfer. The customer does not have to give out any data, which lowers the inhibition threshold for the purchase.

This is indispensable for online shops, even though the risk of non-payment lies with the merchant as long as he does not use a payment provider.


The customer makes a purchase, transfers the amount and the merchant ships the goods after receiving the money. With this payment method, too, no data has to be entered. Due to the transfer, the shipment may be delayed. In contrast, the merchant enjoys payment security and immediate liquidity.

Whether a shop offers advance payment depends largely on the target group and to what extent they are willing to wait for the goods. In general, this payment method is (still) part of the portfolio.


Cash on Delivery

It almost seems a bit medieval and payment on delivery actually dates back to times when people didn’t shop online but, for example, via catalogues. Payment is not made online, but in cash to the postman who delivers the parcel. The advantage is that customers do not have to pay in advance. However, there are high fees and the parcel must be accepted in person.

Most of the time, this payment method is no longer worthwhile.


SEPA Direct Debit

With SEPA direct debit, the customer enters their bank details during the ordering process so that the amount is automatically debited from their account before dispatch. This makes the payment process uncomplicated. Once the bank details have been entered, a purchase with direct debit authorisation can be processed again and again using this payment option. Nevertheless, many customers shy away from entering their bank details for fear of cybercrime. Furthermore, the merchant runs the risk of a return debit note if an account is not covered.

The direct debit option is still important for online shops.

Credit Card

Mastercard, Visa or Amex – buying with a credit card is one of the most popular payment methods at Standard Payments. For the payment process, the buyer enters his card number as well as the expiry date and the verification number, and when the shop has determined that it is correct, the amount is charged. The goods are shipped immediately. This payment method in e-commerce enjoys an international reputation and payment is uncomplicated. Disadvantages often arise here due to the risk of credit card fraud.

As an online shop, offering credit cards as a payment method is essential.

Quick Payments


PayPal not only trumps with security, but also makes quick and uncomplicated payment possible. For this payment method, the customer has his own PayPal account, which is linked to his bank account. During the purchase process, the customer logs into his PayPal account, confirms the payment. The amount is automatically debited from the account by PayPal and transferred to the online shop. There is no need to enter sensitive data, nor does the customer have to wait long for his ordered goods, because the transaction is usually carried out to the second. In the meantime, PayPal can also be used without an account.

Because PayPal is one of the most popular payment methods in e-commerce, hardly any company can afford not to offer this payment method.


Sofortüberweisung (German Direct Payment Provider)

With Sofortüberweisung, payment is processed via Sofort GmbH and is particularly fast due to direct online banking. PIN and TAN are required for the payment method. The entry of sensitive data is an inhibition threshold for customers.

Sofortüberweisung is important as a payment method for online shops because of its speed.


Amazon Payments

Amazon Payments is particularly popular as a payment method in e-commerce, as the marketplace already enjoys great trust. Anyone with a customer account at Amazon can use the payment option. During the purchase process via Amazon Payments, the customer account and the data contained therein are accessed. Payment is quick and uncomplicated.

Amazon Payments is becoming more and more important and should therefore slowly but surely be integrated into every shop.


Mobile Payment

Today, the smartphone is our constant companion. With M-Payment, it is possible to pay quickly and easily using mobile devices. The payment information is stored in an app or cloud. Well-known mobile payment systems are Apple Pay, Google Pay or, in German-speaking countries, Payback Pay. Mobile payment can be used offline (Proximaty Payment) and online (Remote Payment), although the payment method is still rarely offered in e-commerce. However, this payment method is already preferred by smart consumers (striving for price advantages and quality) and heavy online shoppers (buy online particularly frequently).

As mobile payment is one of the most promising trends, merchants should strive to offer this payment method.

Why the Choice of different Payment Methods is so important

Today, customers not only want to be able to choose freely when it comes to products. The choice of payment method in e-commerce is also important. When it comes to payment at the checkout, this is usually a sensitive part of the customer journey. It is therefore important to pay particular attention to the demands and expectations.

In most cases, the purchase is concluded with the payment. If the customer does not find his preferred payment options now, the probability of shopping cart abandonment is high. Around one third of sales fail because of the payment method or the non-existence of the preferred payment methods. Ultimately, an online shop must offer all important payment methods in a good mix and keep up to date with new possibilities. This not only guarantees an increase in sales, but also customer loyalty.

Shopping Cart Abandonment before the Payment Process – what to do?

If customers abandon the purchase before the payment process, personalised exit intent pop-ups and individual why shopping cart abandonment emails can prevent the shopping cart abandonment or win back shopping cart abandoners afterwards.


Exit Intent Popups appear shortly before the visitor leaves the online shop. Using intelligent data processing, the software recognises the customer characteristics and the reason for abandonment, so that the exit intent pop-up then addresses the needs of the abandoner in terms of content. The tone of voice (cordial, matter-of-fact, hip) and the purchase incentive (e.g. service offer or discount code) are therefore perfectly tailored to the individual abandoner. In this way, online retailers secure sales that they almost lost.

Abandoned Cart Emails are sent after a shopping cart abandonment has already taken place. Here, too, the tool responds to the individual abandoner so that he or she feels addressed and picked up in the best possible way. Depending on the reason for abandonment, a service offer (e-mail, telephone or Whatsapp service), a discount code or a simple shopping basket reminder appears as an incentive to buy. As a result, the absentee returns to the purchase process satisfied.

Read the shopping cart abandonment guide to understand abandoners and reduce shopping cart abandonment in the online shop!

Payment Method Management: Payment Service Providers

The provision of different payment methods often poses challenges for e-commerce and companies. So-called payment service providers provide a remedy. They take care of the integration of different payment methods, which means that an individual contract does not have to be concluded with each provider. This saves a lot of time and ultimately also money. In addition, the service providers also assume the risk of payment defaults. The following payment service providers are established in Germany:


  • Klarna
  • Computop
  • Payone
  • Heidelpay
  • Amazon Pay
  • giropay
  • Paymorrow
  • Wirecard
  • Saferpay
  • Adyen
  • Paypal+
  • Skrill (prepaid principle)
  • Concardis

To avoid shopping cart abandonment in the last step, it is important to offer customers all common and new payment methods. PayPal is a must today, but the classics also exist. While some payment options such as purchase on delivery are declining, newer options such as mobile payment are becoming established. Because there will certainly be new and innovative methods in the future due to the strong growth of e-commerce, it is advisable to have the integration done by a payment service provider. This makes it easy today to integrate the various payment methods and thus increase the conversion rate.

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