# Payment Method

> A payment method is any instrument or mechanism used by a customer to pay for goods or services, including credit cards, bank transfers, digital wallets, and local payment options.

- **URL**: https://dodopayments.com/glossary/payment-method

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## What is Payment Method?

A payment method is the specific instrument a customer uses to pay for a transaction. This includes traditional options like credit and debit cards, as well as modern alternatives like digital wallets, bank transfers, and buy-now-pay-later services.

Offering a variety of payment methods is a key strategy for reducing checkout friction. Different regions and demographics have different preferences, making a diverse payment mix essential for global growth.

### Why It Matters

- Determines the ease and speed of the checkout process for the customer

- Affects the processing fees and settlement times for the merchant

- Influences the level of fraud protection and dispute rights available

- Critical for reaching customers in markets where card usage is low

## Learn More

- [How to accept online payments globally](https://dodopayments.com/blogs/how-to-accept-online-payments)
- [Best payment methods for SaaS businesses](https://dodopayments.com/blogs/best-payment-methods-for-saas)
- [Payment gateway comparison for modern SaaS](https://dodopayments.com/blogs/payment-gateway-comparison)