What payment methods are available in shops?

In today’s day and age, stores offer a variety of payment methods to meet their customers’ needs and keep pace with technological advances. Here are the main payment methods available:

• Cash: cash remains a common payment method, especially for small amounts, in rural areas or for impulse purchases.
• Bank cards: debit and credit cards are widely accepted, often accompanied by contactless technology for fast and secure payments up to a certain amount.
• Cheques: although their use is declining, some businesses still accept cheques, particularly for larger amounts or in specific situations.
• Mobile payment: with the growing popularity of smartphones, mobile payment applications such as Apple Pay, Google Pay and Samsung Pay allow customers to pay directly with their phone.
• E-wallets: services such as PayPal and Lydia offer online payment solutions that can also be used in-store via dedicated applications or QR codes.
• QR code payments: more and more retailers and restaurants are adopting this method, where customers scan a QR code with their smartphone to make a quick, contactless payment.
• Gift cards and vouchers: many retailers offer and accept gift cards or vouchers, enabling customers to pay for their purchases in full or in part.
• Cryptocurrencies: although much less common, some forward-thinking shops accept payments in cryptocurrencies such as Bitcoin or Ethereum, offering a modern, decentralised alternative.

How to set up these different payment methods

For retailers, here’s how to set up these different payment methods. By integrating these various payment methods, stores and restaurants can improve the customer experience, reduce friction at the checkout and attract a wider and more diverse customer base.

Cash :

• Implementation: retailers must have a cash register and a cash management system to secure and track transactions. It is also important to have a small change box to give change to customers.

Bank cards:

• Implementation: businesses must equip themselves with a point of sale (POS), often supplied by their bank or a specialist service provider such as Ingenico or Verifone. They must sign a contract for the sale or hire of the terminal and associated services to process card transactions.

Cheques :

• Implementation: to accept cheques, retailers must have a business bank account and a facility to verify customers’ identity, such as asking for ID. They can also use payment guarantee schemes to reduce the risk of bounced cheques.

Mobile payment:

• Implementation: businesses should ensure that their payment terminal is compatible with NFC (Near Field Communication) technologies used by mobile payment applications such as Apple Pay, Google Pay and Samsung Pay. Software updates may be required to activate these options. Nowadays, it is an easily-found option offered my almost all providers.

Electronic wallets :

• Implementation: merchants can register with services such as PayPal or Lydia and integrate these options into their payment terminal or via QR codes displayed in-store. This may involve creating a business account and configuring payment settings in the relevant application.

Payment by QR code :

• Implementation: retailers need to generate a QR code for each transaction or use a static QR code linked to their payment account. Applications such as PayPal, Alipay and Lydia make it easy to create and manage these QR codes. Customers then scan the code with their smartphone to complete the payment.

Gift cards and vouchers:

• Implementation: retailers can create and sell their own gift cards or use third-party services that provide personalised gift card and voucher solutions. It is important to have a tracking system to manage the remaining balance on each card or voucher.

Cryptocurrencies:

• Implementation: to accept payments in cryptocurrencies, companies need to create a digital wallet via a platform such as Coinbase or Binance. They can then display their wallet address or a QR code in-shop to receive payments. Payment solutions such as BitPay also offer dedicated services for businesses to manage cryptocurrency transactions more seamlessly.

Understanding the benefits of all these payments

Cash :

• Benefits :
  • No bank commission.
  • Immediate payment with no risk of rejection.
  • Accessible to all customers, including those without a bank account.

Bank cards :

• Benefits :
  • Speed and convenience for customers.
  • Reduced risk of theft when handling cash.
  • Increase in the average basket, as customers are less limited by the amount of cash they have.

Cheques :

• Benefits:
  • Allows higher value transactions.
  • Provides an alternative for customers who prefer not to use bank cards.
  • Useful for B2B (Business to Business) transactions.

Mobile payment :

• Benefits :
  • Speed and convenience for a seamless customer experience.
  • Enhanced security thanks to encryption and tokenisation technologies.
  • Attractive to tech-savvy customers.

Electronic wallets :

• Benefits :
  • Ease of use and speed of transactions.
  • Reduces payment errors and fraud.
  • Builds loyalty among customers who use these services regularly.

Payment by QR code :

• Benefits :
  • Simplicity and speed of payment.
  • Reduced physical contact, promoting hygiene and health safety.
  • Flexibility for payment on the move.

Gift cards and vouchers :

• Benefits :
  • Increased sales and anticipated income.
  • Attract new customers through gifts.
  • Encourage repeat visits to use the remaining balance.

Cryptocurrencies :

• Benefits :
  • Access to a technophile and international clientele.
  • Transaction fees are often lower than bank card fees.
  • Possibility of marketing appeal by adopting modern technology.

Measuring the benefits 

Retailers can measure the benefits by tracking and analysing performance and impact on a daily basis. Here’s how to do it:

To monitor sales and transactions, the Point of Sale (POS) software enables : 

• An analysis of sales by payment method: sales reports are used to track the number of transactions by type of payment (cash, card, mobile, etc.). This allows you to identify the most commonly used payment methods.
• Comparison of average baskets: the average basket for each payment method should be consulted and analysed to see whether certain methods encourage higher spending.

When it comes to analysing costs and profits, accounting and financial tools provide an overview of : 

• Calculating transaction costs: you need to track the costs associated with each payment method (bank card fees, e-wallet commissions, etc.) and compare them with the revenue generated.
• Gains and losses: transaction costs must be compared with the benefits in terms of additional sales or customer loyalty.

To measure customer satisfaction, a loyalty programme uses opinion surveys and personalised e-mail messages to obtain feedback on the payment methods available:

• Satisfaction surveys: customers should be asked about their satisfaction and preferences in terms of payment methods via surveys or questionnaires.
• Online reviews: you need to monitor online reviews and comments to see if there are any specific problems or preferences relating to payment methods.

To assess security and fraud, rely on fraud detection tools, but also: 

• Fraud incidents: incidents of fraud or disputes relating to each type of payment must be monitored and analysed to assess security. You need to train your staff or a manager in this area.
• Payment security: you need to assess the security measures in place for each payment method and their effectiveness.

Improving operational efficiency

Tracking operational performance is crucial to understanding the effectiveness and impact of different payment methods on the day-to-day operations of a convenience store.

Transaction time is an important issue: we need to measure the average time taken to complete a transaction with each type of payment in order to identify the most efficient methods.

How do you go about it?

Collecting data:

• Use an integrated point-of-sale (POS) system that automatically records the start and end times of each transaction.
• The POS should be configured to categorise transactions by payment type (cash, bank card, mobile payment, etc.).

Data analysis:

• We need to identify the variations in transaction times depending on the type of payment, the time of day and the day of the week.

Efficiency assessment:

• Bottlenecks or inefficiencies specific to certain payment types should be identified (e.g. cheque processing time compared to contactless payments).

Implement improvements:

• Staff should be trained to optimise the slowest payment processes.
• The use of faster payment methods should be encouraged through promotions or in-store signage.

Competitive advantages

There are many competitive advantages to diversifying payment methods in retail outlets. Here are the main ones:

Improving the customer experience

• Comfort and convenience: customers appreciate the flexibility of choosing their preferred payment method, making the shopping experience more pleasant and convenient.
• Reduced waiting time: contactless and mobile payments can speed up the payment process, reducing queues and improving in-store flow.

Increased sales

• Higher average basket: customers are often more likely to spend more when using bankcards, e-wallets or mobile payments than when using cash.
• Impulse buying: quick and easy payments can encourage impulse buying, increasing revenue.

Building customer loyalty

• Broadening the customer base: accepting a variety of payment methods attracts a wider customer base, including foreign or tech-savvy customers who prefer mobile payments or cryptocurrencies.
• Loyalty: offering convenient payment options can improve customer satisfaction and encourage long-term loyalty.

Reducing the risk of fraud

• Increased security: modern payment technologies, such as mobile payments and tokenisation, offer higher levels of security, reducing the risk of fraud.
• Risk diversification: by diversifying payment methods, merchants can spread the risks associated with each individual method.

Optimising costs

• Lower transaction fees: some payment methods, such as e-wallets or crypto-currencies, can offer lower transaction fees than traditional bank cards.
• Cash management: reducing reliance on cash payments can reduce cash management costs, such as secure transport and bank deposits.

Adapting to market trends

• Innovation and modernity: adopting the latest payment methods shows that the business is at the cutting edge of technology, which can improve its brand image.
• Responding to customer expectations: consumers increasingly expect a variety of payment options; meeting this expectation can provide a competitive advantage.

Flexibility and resilience

• Continuity of operations: in the event of a problem with a particular payment method (bankcard terminal breakdown, cash shortage, etc.), merchants can continue to accept payments using other methods.
• Adaptability to regulatory changes: diversifying payment methods makes it easier to adapt to new regulations and market developments.

Customer data

• Better understanding of customers: different payment methods can provide additional data on customers’ purchasing habits, enabling more in-depth analysis and better personalisation of offers.
• Targeted marketing: use payment data to create loyalty programmes and promotions specific to certain customer segments.

By diversifying payment methods, businesses can not only improve the customer experience and increase sales but also enhance security, optimise costs and position themselves favourably compared to their competitors. 

This proactive strategy enables companies to meet evolving consumer expectations and rapidly adapt operations to market changes, ensuring resilience and sustainable growth.