Payment services play a crucial role in ecommerce. Diversifying payment methods can provide a more complete shopping experience for consumers, maximise revenue, and enhance the brand for businesses.

Here are some payment methods in ecommerce:

COD (Cash On Delivery): Pay upon receiving the goods

COD is a payment method where the buyer pays the delivery person directly upon receiving the goods. Buyers don’t have to pay in advance when placing an order, and if the products are not satisfactory, they have the right to refuse and return the items.

• Popularity: 78% (2020)
• Benefits:
  • Sellers:
    • Build trust with customers when shopping online.
    • It boosts orders and increases revenue as buyers don’t have to pay upfront.
  • Buyers:
    • Allow payment after checking the products, helping customers avoid receiving unwanted items.
    • Limit the risk of personal or card information theft on websites with weak security.

Bank transfer

A bank transfer involves transferring money from the buyer’s bank account to the seller’s bank account to pay for products or services. Modern bank transfer methods, such as Internet Banking and Mobile Banking are replacing traditional ATM transfers.

• Popularity: 39% (2020)
• Benefits:
  • Quick transactions through Internet Banking or Mobile Banking.
  • It saves shopping time.
  • Easy control of transaction information.
  • Limits the risks associated with using cash, such as theft.

Online payment gateways

Online payment gateways connect banks, buyers, and sellers, with the ultimate goal of allowing sellers to receive funds immediately after completing online transactions. These gateways accept domestic debit cards, credit cards, and ATM cards. Popular gateways in Vietnam include VNPay, ZaloPay, Payoo, Paypal, OnePay, etc.

• Popularity: 23% (2020)
• Benefits:
  • Faster payment processes.
  • It helps customers save time.
  • Reduce the risks associated with cash transactions.
  • High information security due to strict security standards.
  • Provide detailed payment history for effective transaction management.

E-wallets

E-wallets are online payment accounts used for various online transactions. Payments through e-wallets are made by linking the account to a bank account, depositing money into the wallet, and then making simple and convenient payments for linked services. Some popular e-wallets in Vietnam include Momo, ZaloPay, etc.

• Popularity: 20% (2020)
• Benefits:
  • Convenient smartphone payments.
  • Save transaction time.
  • Reduce the risks associated with cash transactions.
  • Easy and safe account checking and management.
  • Low usage fees for financial transactions compared to other features with the same functionality.

Scratch cards

Payment using scratch cards allows users to pay or top up their electronic accounts by purchasing mobile phone card codes from mobile network providers such as Viettel, Mobifone, Vinaphone, etc. However, this payment method is usually only applicable to specific ecommerce platforms and websites.

• Popularity: 6% (2020)
• Benefits:
  • Quick payments at various price points (20,000 VND, 50,000 VND, 100,000 VND, etc.).
  • Reduce the risks associated with cash transactions.

Brand-specific cards/wallets

Brand-specific cards/wallets are payment methods designed by brands or businesses that allow users to make payments within the brand’s or business’s system. Examples include Shopee’s wallet, Lazada’s eM wallet, Starbucks’ card, VinGroup’s VinID, etc.

• Popularity: This payment method has only recently started gaining popularity, particularly among large brands.
• Benefits:
  • Convenient and quick payments.
  • Reduce the risks associated with cash transactions.
  • Enhance the brand for businesses.
  • Collect user shopping behaviours and preferences for segmentation.

E-vouchers

E-vouchers are online discount vouchers/codes provided by e-commerce businesses such as Shopee, Lazada, Tiki, Luxstay, etc. Customers can use them flexibly and conveniently to choose products and services and make payments using e-vouchers.

• Popularity: This payment method has been around for a long time and is favoured by young people for its convenience and savings when shopping.
• Benefits:
  • Quick and convenient payments with various discounts.
  • Enhance the brand for businesses.

The most popular payment method in ecommerce today is COD. However, due to the “digital transformation” nature of the ecommerce market, electronic payment methods are developing and becoming a new trend in payment services.

In 2020 alone, the revenue from the electronic payment market reached 8,904 million USD, a growth of 14.2% compared to 2019 (according to the Landscape 2020 report). Additionally, developing brand-specific cards/wallets for businesses is a potential method for the ecommerce website payment services.