Payment Methods Your Customer Want in 2026
Joshua D'Costa
Growth & Marketing
Jan 13, 2026
|
5
min
As we approach 2026, checkout ease and choice are essential. Modern shoppers expect fast, flexible payment options, 1 in 5 U.S. customers even abandons carts if checkout drags on. Offering multiple methods keeps customers happy: adding just one relevant option can boost revenue 12%.
In fact, consumers now use a wide range of payment types from traditional cards to mobile wallets, BNPL, crypto, and more. Below we explain each major method, what it is, how it works, plus key pros/cons. By understanding these options, SaaS founders and indie entrepreneurs can meet customer expectations and maximize sales.
Most Popular Payment Methods Customers Use in 2026
Credit and Debit Cards
What it is: Credit/debit cards Visa, MasterCard, etc. are the backbone of online payment. Credit cards extend a short-term loan (you pay later), while debit cards draw directly from a bank account. Cards require customers to enter card details like number, CVV, address, at checkout.
How it works: When a customer pays, the processor securely routes the card data to the issuing bank for approval. If approved, funds are transferred (typically settling in 1–3 business days). Customers get instant confirmation, and merchants eventually receive payment in their account.
Pros:
High Adoption & Spend: Cards are universally trusted and enable large purchases. Shoppers tend to spend more when paying by card, and cards work for both one-off and recurring billing.
Fast, Familiar Checkout: Card payments are near-instant for buyers, and processors offer fraud checks and chargeback handling.
Supports Recurring Billing: Essential for SaaS and subscriptions; card tokenization lets payments recur automatically.
Cons:
Processing Fees: Merchants pay 1 to 3.5% per transaction. High-ticket or international cards can cost even more.
Delayed Funds: Payouts settle in 1 to 3 days, unlike cash which is immediate.
PCI Compliance: Handling cards securely requires following strict PCI rules, adding overhead.
Chargeback Risk: Customers can dispute charges, sometimes causing fees or losses.
Cash (Cash on Delivery)
What it is: Cash payments involve physical currency. In ecommerce, “cash on delivery” (COD) means customers pay cash when an order arrives. This is rare online but used in markets where cards are scarce.
How it works: With COD, the merchant ships the product and collects cash from the courier upon delivery. The seller only ships once payment is assured (common for local deliveries).
Pros:
Immediate Payment, No Fees: Merchants get cash at the door with no processing fees.
Accessible: Allows people without cards or bank access (tourists, some elders) to pay.
Cons:
Security & Theft Risks: Keeping cash increases theft risk for delivery personnel or customers.
Inconvenient for Online Business: Impossible for pure digital goods or non-local sales.
Declining Demand: Most modern shoppers prefer cards or wallets with rewards, so cash payments are uncommon.
Digital Wallets
What it is: Digital wallets (Apple Pay, Google Pay, Samsung Pay, PayPal Wallet, Venmo, etc.) are apps that store a customer’s card, bank, or other payment info securely on their phone or account. Users tap their phone or log in to pay without retyping card details.
Digital wallets are surging. In the US digital wallets made up 37% of online payment value in 2024. They are projected to cover over half of e-commerce sales by 2027.
How it works: At checkout, the customer selects their wallet and authenticates (e.g. fingerprint, Face ID, PIN). The wallet sends a tokenized payment to the processor – so the merchant never sees raw card numbers. This makes checkout one-click-fast.
Pros:
One-Tap Checkout: Payments are faster (just authenticate and pay) which reduces cart abandonment.
Extra Security: Device authentication and tokenization keep actual card data out of the merchant’s hands, lowering fraud.
Multiple Funding Sources: Wallets can fund from cards, bank accounts, or even link to BNPL options.
Cons:
Hardware/Integration Needed: Brick-and-mortar stores need NFC readers or QR support to accept tap payments. Online stores need to integrate each wallet API.
Adoption Varies: Not every customer or region uses the same wallet. (US uses Apple/Google Pay; China uses Alipay/WeChat).
Some Fees: Wallet providers may charge slightly more per transaction compared to cards.
Buy Now, Pay Later (BNPL)
What it is: BNPL lets customers split a purchase into installments (often interest-free for a short term) using services like Klarna, Affirm, etc. Think of it as an instant loan at checkout.
How it works: The buyer selects BNPL at checkout and goes through a quick approval. The BNPL provider pays the merchant upfront and then collects the installment payments from the buyer over time. The merchant is guaranteed payment right away.
Pros:
Higher Order Values: People buy more when they can pay in parts; average carts and conversions rise.
Instant Merchant Payment: You get paid immediately, even though the customer pays later to the provider.
Access New Buyers: Customers without big upfront cash can still purchase. As one creator shared, BNPL “unlocked payments I couldn’t secure” by letting customers afford fees over time.
Cons:
High Merchant Fees: BNPL fees are 2 to 6% per sale, much higher than regular card fees.
Potential Customer Debt Issues: While interest-free short-term, customers risk late fees or debt accumulation if installments are missed.
Chargeback Handling: BNPL providers typically handle disputes differently, adding complexity.
Payment Processors
What it is: A payment processor (Dodo Payments, Stripe, PayPal, etc.) is a service that moves money from your customer’s payment method to your bank. It’s the invisible middleman linking merchants, banks, and card networks to make the transaction happen.
How it works: When a customer pays, your processor encrypts and transmits their payment data to the card networks/banks for authorization. It then settles the funds into your merchant account. Processors often bundle services like gateways, fraud checks, and reporting.
Pros:
Handles Everything: Processors manage authentication, encryption, and compliance (PCI DSS), which secures payments. They can handle all major payment types (cards, ACH, wallets, etc.) and multi-currency transactions.
Features for Merchants: Most platforms include built-in fraud detection, subscription billing support, and detailed analytics. This streamlines operations for small businesses and SaaS.
Global Reach: Good processors route payments worldwide, letting you expand internationally with fewer hassles.
Cons:
Fees and Costs: Processors charge transaction fees (1.5 to 3.5% + $0.10–$0.30), plus possible monthly or setup fees. There can also be chargeback fees and PCI compliance fees.
Dependence on a Vendor: You’re tied to their uptime and policies. Hidden fees (batch, statement fees) or long contracts can sneak up.
Complex Setup: Integrating and maintaining a secure payment system can be technical. However, most modern processors aim to simplify this for developers.
Manual Payments
What it is: Manual or alternative payments include offline methods like personal checks, money orders, or direct wire transfers. These are “outside-the-box” options for clients who can’t or won’t use standard online methods.
How it works: The merchant offers an option like “Check by Mail” or “Bank Wire” at checkout. The customer sends payment offline, and the merchant verifies receipt before shipping goods or delivering services. This process requires manual follow-up.
Pros:
Works for Tough Cases: Useful for B2B sales or customers that credit card processors might reject. If you sell very high-ticket or to corporate clients, checks/wires can be necessary.
No Processor Limits: Checks allow any amount up to account balance, and wire transfers have high transaction limits.
Cons:
Slow and Manual: You must wait for funds to clear (days for checks/wires) and manually confirm payment. This delays fulfillment and adds admin work.
Fraud Risk: Personal checks can bounce; without advanced verification, you risk non-payment.
Not Scalable for Ecommerce: Handling many manual payments is impractical for high-volume stores. It’s best kept for special orders.
Bank Transfers (ACH, Wire)
What it is: Bank transfers (ACH in the U.S., SEPA in EU, wires globally) move money directly from one bank account to another. ACH is common for U.S. customers, wires for international or large payments.
How it works: The customer initiates a transfer through their bank (online or via an invoice). ACH transactions typically clear in 1–3 business days; wire transfers can be same-day or up to 5 days, depending on banks. The merchant receives money straight into their account.
Pros:
Low Fees: ACH fees are usually flat and very low (often $0.50–$1 per transaction), far cheaper than card percentages. Good for large or repeat payments.
Secure: Transactions are bank-verified, reducing fraud risk.
High Limits: Ideal for high-value purchases or B2B transactions where cards’ limits are too low.
Cons:
Slow Settlements: Transfers can take several days, which is much slower than instant card payments.
Not Consumer-Focused: Many everyday customers aren’t familiar with ACH or unwilling to go through banking steps.
Setup Overhead: You may need to provide bank details securely or integrate with an ACH-enabled payment gateway.
Autopay (Recurring Billing)
What it is: Autopay automatically charges a customer’s saved payment method on a regular schedule (e.g. monthly subscriptions, memberships, utility bills).
How it works: Once a customer sets up their subscription, the payment processor securely stores their card or bank info. Each billing cycle, the processor charges the account without the customer re-entering details.
Pros:
Customer Retention: Eliminates friction for repeat buys customers stay subscribed without re-logging in to pay. This locks in revenue for SaaS and subscription products.
Convenience: Prevents missed payments (customers won’t forget to renew).
Cons:
Limited Scope: Only applies to periodic services, not one-off sales.
Customer Anxiety: Some shoppers hesitate to give recurring billing info or fear hidden charges. You must offer easy cancellation to win trust.
Cryptocurrency
What it is: Cryptocurrencies (Bitcoin, Ethereum, stablecoins, etc.) are digital assets some merchants accept as payment. They’re popular with tech-savvy or international customers.
How it works: Customers select “Crypto” at checkout and pay from their crypto wallet. The merchant’s wallet or payment gateway receives the digital coins. Merchants can hold crypto or immediately convert it to fiat currency.
Pros:
Fast Global Settlement: Crypto payments process 24/7 and clear in minutes, with no banks involved. This can speed up cross-border sales.
Lower Fees: Network (miner) fees are often lower than card fees, especially for large transfers.
New Market Access: Appeals to a growing global audience and those who value decentralization.
Cons:
Volatility: Crypto prices swing wildly. If you hold coins, their value can drop before conversion. Many businesses auto-convert to avoid this risk.
Limited Adoption: The customer base is still much smaller than for cards or wallets.
Regulatory Complexity: Compliance (KYC/AML, taxes) for crypto can be tricky and still evolving.
Rewards or Points
What it is: Some stores let customers pay with loyalty rewards or points earned from previous purchases. It’s like a store credit program rather than a standalone method.
How it works: A buyer redeems points or credits at checkout, applying them toward the purchase. For example, 100 points might equal $5 off (as Mirenesse does). The payment gateway applies the discount; the remaining balance (if any) is paid normally.
Pros:
Customer Loyalty: Offering point redemption builds repeat business and engagement. It can grow your brand and lower acquisition costs over time.
Immediate Revenue: Gift cards or points are paid for (or earned) upfront, guaranteeing future sales.
Cons:
Complexity: Setting up and managing a points system is extra work. It adds another layer to your payment flow.
Short-Term Revenue Impact: Sales paid in points don’t bring direct cash immediately, affecting short-term income. Over time it may pay off through loyalty.
QR Code Payments
What it is: QR payment lets customers scan a code (usually with their smartphone) to pay. The QR code can link to a payment gateway or app.
How it works: The merchant displays a QR code (on screen, print, or product). The customer scans it with a mobile wallet or banking app, which opens a payment request. They confirm the amount and complete the payment on their device.
Pros:
Fast & Contactless: Scanning is quick and requires no typing. It bridges online/offline: great for pop-up shops, events, or invoicing.
Flexible Channels: Works for social selling or stores without POS hardware. Customers simply use their phone’s camera.
Cons:
Smartphone Required: Customers must have a smartphone and suitable app. Not everyone will.
Regional Variation: QR payments are huge in some markets (Asia) but less common elsewhere.
Security Caution: Merchants must ensure QR links are secure to prevent phishing.
Digital Payment Links
What it is: Digital payment links are simple, shareable URLs that lead a customer to a payment page. They let you collect money without a full online store (ideal for freelancers or direct orders).
How it works: You generate a secure payment link (via your payment platform or invoicing tool) and send it to the customer by email, SMS, or social media. When clicked, the link opens a checkout page where they enter payment details and pay instantly.
Pros:
Easy to Use: No need for a website or e-commerce setup. Just send a link and get paid. Handy for consultants, agencies, or social sellers.
Versatile: Works for one-time or even recurring payments. It’s perfect for custom orders or invoicing.
Cons:
Less Branded: Customers leave your site to pay, so the experience can feel less polished.
Security Risk: Link-sharing must be done safely. Merchants need measures against fraudulent or phishing links.
Requires Internet: Payers must be online; no offline option.
How to Choose the Right Payment Methods for Your Business
Choosing the best mix depends on your customers and product. Here are key factors to guide you:
Check where your customers are: Payment habits vary by region. For example, Chinese shoppers expect Alipay/WeChat Pay, while Germans favor bank transfers. Displaying familiar local options builds trust.
Know your audience: Different demographics prefer different methods. Gen Z is mobile-first, while Boomers mostly stick to cards. If you target young users, prioritize one-tap wallets and BNPL. If serving corporate clients, include ACH or invoicing.
Review your sales data: Look at past transactions. Are most customers using cards, wallets, or something else? Focus on the top 2–3 methods covering 80–90% of sales. Adding rarely-used options can raise costs without much benefit.
Compare Fees: All methods carry fees. Weigh the cost against lost sales risk. Sometimes paying a higher fee (like BNPL) is worth the extra revenue it generates.
Prioritize Security: Customers expect safe payments. Choose trusted processors that offer tokenization, fraud monitoring, and PCI compliance. A breach or fraud incident can damage your reputation more than modest fee savings.
Plan for Global Growth: If you aim to sell internationally, research local favorites. The right global payment platform like Dodo Payments that can handle multiple currencies and local rails, making expansion smoother.
Final Thoughts
By 2026, convenience and flexibility will be non-negotiable. Modern customers expect to pay with whatever suits them from one-click digital wallets to installment plans. For SaaS founders and indie businesses, this means ensuring seamless recurring billing and easy checkout links; for online stores, it means offering everything from cards to local wallets.
