With the COVID-19 pandemic sweeping across the globe, businesses are moving to the virtual world at light’s speed. This is something we would not have expected from many businesses before 2020.
With these businesses moving online, there are new payment methods on the rise. These organizations did not always start a webshop, but did want to conduct business online. Pay by link, a relatively new form of payment, is now on the rise and gives instant payments.
What do we mean with ‘pay by link’?
As the name suggests, customers will receive a link which they can click on to conduct the payment. They can be redirected to their preferred means of payment, for example PayPal or their very own credit card, and then fulfil the amount. Once the payment is completed the business can ship the products or provide the purchased service.
When to use this type of payment?
There are many use cases out there when it comes to pay by link. The technology allows for payments in both online and offline settings, as becomes evident with the use cases below.
Selling via social media
This helps small businesses to sell their goods more easily via social media. After contact between the business and customer is established a payment link can be shared for the payment to be conducted.
When having a pick-up or delivery service, there is always a difficulty when it comes to payments. When restaurants do not have a website platform that allows for payments, they are often dependent on cash payments at the counter or door. With payment links, this has now become something of the past. After the order has been received, a link can be shared with the customers. The restaurant owner can then start preparing the food after the (instantaneous) payment is received. This reduces the risk of customers not paying for their food.
Since the pandemic started, businesses are increasingly looking at ways to remain compliant with hygiene standards. Using this payment method can help, as there is no physical contact with the customer. Therefore, it has become a favourable payment over the use of card readers. Do note that there are indeed card readers available that offer contactless payments. However, often these do need a PIN code when a user has exceeded a certain threshold with their payment(s).
How can businesses start using this payment method?
There are many providers of this type of technology. One of the pioneers that opened up the market for payment links is SumUp. This company is offering both links as well as card readers that are simple and intuitive to use. With their low transaction fees and fast, almost instant payments they are now serving a broad range of organisations.