Recent data reveals that 57% of Millennials and Gen Z prefer shopping with merchants who offer payment links. But why is this preference so strong? Let’s explore.
Picture this: you’re in urgent need of groceries and decide to order online. As you’re about to complete your order, you realise that the only payment options are bank transfer and cash on delivery. Frustrating, isn’t it? This is how customers feel when businesses don’t offer the convenience of payment links.
In a digitally evolving India with over 700 million internet users, payment links can provide your business with a significant competitive advantage. Today, we’ll dive into what payment links are, their benefits and types, and how they can transform your transactions.
What are the payment links? How do they work?
A payment link is a clickable URL that allows customers to pay you online. These links can also be QR codes or payment buttons and shared via email, SMS, chat, etc.
Although payment links can facilitate online and in-person purchases, they are more useful in the former scenarios. They are ideal for small businesses that want to offer online payment options without setting up an entire eCommerce website or a dedicated checkout page.
Let’s put this in perspective for you:
Suppose you run a jewellery store on Instagram. A customer places an order with you, and you need to collect payment from them.
Instead of risky, cash-on-delivery, or cumbersome bank transfer options, you generate and send a unique link to the customer, which allows them to click on it and make the exact payment securely within minutes. That’s how payment links work.
What are the different types of payment links?
Payment links can be of various types, making them suitable for all kinds of businesses. Some of the most common payment link examples include:
1. Standard payment links
The basic ones, standard payment links, are the most common interpretation of this digital payment option. They are clickable URLs that businesses generate via a payment processor and send to their customers to receive payments directly into their bank accounts.
2. QR code payment links
QR code payment links are embedded in scannable codes. You can place them on your storefront or send a screenshot to your customers. Upon scanning the code, customers are redirected to a secure payment page where they can enter the amount and make the payment.
3. Button payment links
Just like QR code payment links are embedded in scannable codes, button payment links are embedded in payment buttons that businesses place on their website, email, social media handles, and other channels. When clicked upon, they redirect the customer to a secure payment page and enable them to finish the purchase.
4. Recurring payment links
Recurring payment links are explicitly designed to facilitate recurring payments. If you run a subscription-based business, these links can be set up to automatically send payment prompts to customers on a fixed schedule and ensure they make timely payments to keep their subscriptions active.
How do payment links simplify online transactions?
Payment links help businesses simplify online transactions in more than one way. Here are five of the top ones:
1. Instant payment receipt
Unlike other modes of payment like bank transfers or checks, payment links let you receive payments instantly. The moment you share the link with the customer, they can tap on it and pay you the amount. Moreover, the receipt is also reflected in real-time!
2. No technical setup required
You don’t need to set up an entire digital payment infrastructure to receive online payments via payment links. In fact, you don’t even need to have a website! To create and send payment links, all you need to do is sign up on a payment processing platform, and that’s it.
3. Multiple sharing options
Payment links are super convenient. You can share them with your customers over email, SMS, text messages, etc. This makes them highly desirable, specifically for customers, since they can easily access the link and complete their transactions.
4. Direct payment process
A recent survey found that a complicated checkout process deters 17% of shoppers from finishing their purchase with you, leading to higher cart abandonment rates. Payment links prevent this. By providing a direct, one-stop payment solution to your customers, they encourage them to finish their purchases and reduce their cart abandonment rate.
5. Mobile friendly
Probably one of the best advantages of payment links is that they are mobile-friendly. While you can create and send a payment link from your smartphone, the customer can also access the link and process the payment from their mobile device. This simplifies the entire transaction process for both parties.
When can you use payment links?
Here are some of the most common use cases of payment links:
1. For selling without a website
If you don’t have a website or sell primarily through social media platforms like Instagram, Facebook, or WhatsApp, you can use a payment link to receive customer payments. This way, you can streamline transactions and avoid the need for a traditional eCommerce setup.
2. For selling in-person
If you have a physical, brick-and-mortar store but want to offer digital payment facilities to your customers, payment links can be handy. They can function as a low-investment, highly efficient POS system.
3. For receiving subscription fees
If you own a business that provides subscription-based services, payment links (particularly recurring ones) can help you collect fees from all your subscribers—every month on a pre-determined date.
4. For receiving invoice payments
If you’re a supplier or a wholesaler who needs to collect payment from its clients, payment links can help you facilitate the process. You can include the link in your digital invoice to receive payment instantly from your bank account.
How can you get a payment link for your business?
Now that you know about the various benefits and implementations of payment links, you must be tempted to create one for your business. Well, here’s how you can:
1. Choose a payment processor
Firstly, select a payment processing solution that offers the facility to create payment links. Research aspects like customisation, fees, integration, and other features to ensure the tool is apt for your business.
That being said, check out Pine Labs by Plural! Our customisable payment links feature lets you create clickable URLs and scannable QR codes for your customers in an instant. Want more details? Click here!
2. Set up an account
Now that you have selected a payment processor create an account with them. Add details like your business’s name, address, etc., and link your bank account.
3. Access the payment link feature
Once you have created an account with the payment processing solution, log into your profile and navigate to the “Payments” section. Check for options like “Payment Link” or “Pay-by-Link.”
4. Create a payment link
Once done, follow the instructions to create a payment link for your customer. Certain platforms also allow you to customise the link, so add custom branding, payment terms, etc., if needed.
5. Copy the generated link and share it with your customers
When you finish setting up everything, click “Ok” and copy the generated link. Now, you can share it with the customer via text message or any other mode to receive your payment.
Wrapping up
Payment links are no longer a luxury; they’ve become a crucial component of modern digital transactions. They offer a seamless, convenient, and secure payment experience—exactly what today’s consumers expect. Without this feature, businesses risk losing sales; in fact, 48% of merchants have noted this impact!
Explore Plural Links to see how a comprehensive payment processing solution can transform your transactions. With Plural Links, you can create fully customisable payment links to share via SMS, WhatsApp, Instagram, and more. Personalise each link with your logo and branding for a tailored customer experience.
Ready to revolutionise your payment process? Contact us here!
Plural by Pine Labs has received an in-principle authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator.
