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What is an eCommerce Payment System: Types of eCommerce Payment Methods

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The eCommerce payment system has become the highlight of any successful eCommerce business. If you have established an eCommerce business, you must be aware that your customers expect a quick and straightforward checkout procedure. With the development of technology and the increase in market competition, where every eCommerce business strives to provide its customers with a streamlined checkout process and an appealing interface.

If in case you are still wondering how you can remain competitive in this cutthroat race and improve your customers’ shopping experience. Have no fear! Now you can easily satisfy your customers by providing multiple options within the eCommerce payment system.

This article will provide a comprehensive list of eCommerce payment systems to consider for revenue growth.

What is an eCommerce Payment System?

eCommerce payment systems are utilised by eCommerce businesses to receive payment in exchange for their goods and services. These online payment systems have completely revolutionised and simplified the online business process for both businesses and customers.
Using a payment gateway, an online payment system connects a digital storefront to the payment processing network of your choice. Additionally, this processing network collaborates with your bank to clear your funds.
A simple payment gateway eliminates the need to repeatedly enter card details or personal information. Instead, they utilise third-party processing to streamline the checkout procedure.

Features of eCommerce Payment System

  • Various forms of payment systems
  • Financial analytics
  • Commissions earned by vendors
  • Utilised payment methods
  • Instant settlements
  • Global payments network
  • Recurring invoice
  • Refunds for eCommerce
  • Sub-retailer account
  • Rapid coordination
  • Simple onboarding and incorporation
  • Financial institution verification


eCommerce Payment Systems

Different types of eCommerce Payment Systems

In eCommerce, there are numerous types of payment systems. Ensure your payment gateway supports all of them.
Here are the types of eCommerce payment systems that your business may require to accept payments.

Hosted payment page

A hosted payment page enables you to accept payments on a webpage provided by your Payment Service Provider (PSP). Hosted payment pages are simple to configure. Specifically, the payment gateway ensures PCI compliance.

Self-hosted payment page

The customer is directed to a payment page created by the merchant in self-hosted payment pages. The merchant has greater control over the user’s experience in this scenario. Furthermore, the customer remains on the merchant’s website and is not redirected to a different domain.
Self-hosted payment pages may demand additional technical knowledge and resources. In addition, the merchant is responsible for PCI-DSS compliance.

Off-site payments – QR codes and transaction links

The preceding options discuss payments made via the website or app. Nonetheless, payments are accepted at the point of sale. Individuals may desire to pay through social media app links. This is where off-site payments enter the picture.
You may use payment links for customers whose information is pre-filled (payment price, purpose, etc). The customer can then click the link and select their preferred payment method. The best part is that payment links can be shared via text messages, emails, and even Whatsapp!

Additionally, QR codes can be used to accept payments. This will allow you to convert orders with cash on delivery to online payments. The QR code can be either dynamic or static, depending on your requirements.

eCommerce payment systems must have diverse payment modes. This will enable you, the merchant, to accept the customer’s preferred method of payment. Statistical evidence suggests that 7% of abandoned carts are caused by the lack of preferred payment methods.


eCommerce Payment Systems


Here are some prevalent methods of eCommerce payment systems in India:

1. Credit cards

Credit cards are the foundation of modern eCommerce payment systems. Credit cards are used by consumers to fund alternative payment methods, such as digital wallets. Payment processors such as Visa, American Express, Mastercard, etc. have been around for a long time and are trusted by businesses, making this one of the most reliable payment systems.

2. Debit cards

After credit cards, debit cards rank second in preference within the eCommerce payment systems. The primary distinction between a debit card and a credit card is that, with a debit card, the amount is deducted from a bank account, which should have sufficient funds. This is not the case with credit cards, however.

3. Electronic wallet

The electronic wallet or e-wallet is a prepaid account that allows customers to store multiple debit cards, credit cards, etc, in a secure environment that eliminates the need to enter the information each time the customer makes a purchase. The use of electronic wallets is increasing daily.

4. Smart or chip cards

Smart cards share some visual similarities with debit and credit cards. However, it contains an embedded microprocessor chip. It can store money as well as a person’s personal and professional information. Smart cards also enable faster and cheaper processing.

5. Netbanking

Customers can conveniently make purchases by paying directly from their bank accounts. A customer is not required to have a debit card to use this eCommerce payment system, but they must register with their bank for a net banking facility. The customer only needs to enter their net banking id and PIN to complete a transaction.


This was lengthy.
We hope that all of your questions about eCommerce payment systems have been answered. Choosing a payment system for an online store can be challenging. However, once you have determined your needs, it can be a breeze.
We hope that by reading this blog, you have taken a step in that direction.


1. What is an eCommerce Payment System?

Electronic payment methods are utilised by eCommerce businesses to receive payment in exchange for their goods and services.

2. What are some of the features of the electronic payment system in eCommerce?

Some of the features of an electronic eCommerce payment system are commissions earned by vendors, instant settlements, rapid coordination, and simple onboarding and incorporation.

3. Name the different types of electronic payment systems.

The most common types of electronic payment systems are hosted, self-hosted, QR code and payment links.

4. Can e-wallets be used within the eCommerce Payment System?

Yes, e-wallets are a vital part of eCommerce payment systems and thus can be used effectively.

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