You have a webshop and are looking for a good way to offer payments. But how does the payment process work? We are not going to go too deep into this, but we are going to explain the basics. In principle, sales and payments in a web shop are as simple as in a store; your customer makes a purchase and a money transaction is sent from his or her bank to your bankaccount. The difference is that in the store you use a payment terminal or cash and in a webshop this is obviously not possible. Webshops make use of a Payment Service Provider or a PSP. As the owner of an online store, a reliable PSP is one of the first things you should look for when you want to develop a payment module. A PSP has agreements with various banks, so that they can, for example, check whether there are sufficient funds in your customer's account.

How do you choose the Payment Service Provider for your webshop?

• Look at the costs! Some providers ask for a start-up fee, other PSP's include this in their subscription fee. It is also possible to pay per purchase. This can be done in two ways: you can pay a fixed amount per transaction or you can pay a percentage of the purchase amount.
• Collecting versus distributing: The difference is simple! A collecting PSP collects the money from your customers and afterwards transfers it to your account. A distributing provider does not receive the money itself, but acts as an intermediary. So you also have to set up a contract with a bank.
• What is the payout term of the PSP? This can vary widely: daily, weekly or monthly.
• Modules and plug-ins? Some payment providers have modules and plug-ins that make the integration in your webshop easier. For example, there are PSPs that offer a Magento module.

Some examples of Payment Service Providers are Mollie, Ingenico, MultiSafePay and Adyen. Not only do they make payment intuitive for the customer and easy for the owner of the webshop. They also have the great advantage that they are often recognizable to consumers. Because they are recognizable, chances are that your customer has already had a good experience with them. In that respect it feels familiar to your customer and they will proceed to purchase more quickly. The chance of an abandoned cart is therefore reduced.

There is a difference between a Payment Provider and the various payment methods. Means of payment or payment methods is a way to make your payment. Think of Bancontact, credit card....

The most commonly used payment methods in Belgium are:

• Bancontact: Allows Belgian consumers to pay through their own bank. Recently, consumers can use the Bancontact app on their phone to easily make payments with a QR code.
• Credit card: Credit cards, such as Visa and Mastercard, allow people around the world to make purchases.
• Paying after purchase: This method is on the rise. Companies such as Klarna and Afterpay offer consumers the opportunity to pay afterwards. This lowers the threshold to make a purchase and increases the conversion rate of your webshop.
• iDEAL: Is mainly used in the Netherlands. iDEAL gives your customers the opportunity to pay in the familiar payment environment of their own bank. If you want to sell as a Belgian webshop in the Netherlands, you will need iDEAL.
• PayPal: Through an account on PayPal, consumers can pay at your shop. They can upload money to this account and pay with their "virtual wallet".
• Bank transfer: This method is chosen less and less, because it requires more steps. However, it is often chosen by an older demographic.
• Direct Banking: Many banks offer the possibility to pay in their own online banking. Your consumer is redirected to the bank's app or website and makes the payment there in a familiar environment. Examples are KBC/CBC, Belfius and ING Homepay.

There are a few others you may be familiar with, such as Maestro, Incasso, Sofort (used mainly in Germany), spread payment and gift cards.

You now know which ones there are, but would also like to know which payment methods you should offer yourself? We will give you the most important tip first: choose more than one! As an online store you should offer several options to your customers, so they will have a better chance of completing their purchase. It is possible to choose one payment method and offer this to your customers. But consumers are creatures of habit and often have one favorite way to pay. Several Payment Service Providers offer multiple payment methods to integrate into your webshop.

We give you some tips on choosing the right payment methods for your webshop.

• Look at your target group. A lot depends on your target group for your e-commerce activity. What payment methods do they use? Are they early adopters and well up on new technologies or do you have an older target audience? It's also important to look at the devices on which most of your purchases are made. Some payment methods are better suited for payments on mobile than others.
• There are local differences. We've talked before about how iDEAL is used more in the Netherlands, Sofort in Germany and Bancontact in Belgium. Depending on where you generate the most sales, you will have to provide other payment methods on your website. In the Dutch legislation, for example, post-payment is mandatory. So if you sell a lot on the Dutch market, as a Belgian webshop it is also good idea to offer this option.
• What are the integration possibilities? Especially when looking for a good payment platform that offers various payment methods, it is important to look at how well it will work in your e-commerce enviroment. For example, is there an integration with Magento available?
• Determine your priorities! What is the most important thing for your shop? Which functionalities should definitely be present in your PSP? Do you want to offer one-page check-out, fast check-out to your customers?

There are many options and possibilities to adjust the payment process to the needs of your e-commerce activity. Keep in mind that you want to maintain your customer's trust during the entire payment process, from adding products to the shopping cart to the shipping confirmation. You can only achieve this by creating an environment that feels familiar and recognizable.