Which is the best payment method for you?

When it comes to financial transactions and paying for goods and services we have more choices than ever before. Millions more people got more used to using online payment methods during the months of lockdown. But which is the best for everyday purchases?

Obviously, it depends on whether you are the customer or the seller, but by laying out the advantages and disadvantages of payment methods as diverse as cash and PayPal, we hope we can help you make a decision on how to pay.

Cash

This payment method has been tried and trusted for generations. Before the rise of online business and the internet, just about everything was bought and sold using cash. There are no fees involved and it shows how much we rely on this traditional method that there is still usually an outcry when a business announces that it has gone cashless.

But the use of cash as a payment option has definitely decreased. It is far simpler using other online methods – and more preferable when it comes to larger purchases. Cash is now seen as an old-fashioned way of dealing as other, more digitally powered, methods emerge.

Cheques

This is one payment method that seems even more old fashioned than cash in the UK. Cheques are far more common in the US curiously, but it is quite rare to see anyone attempt to pay this way in this country these days. It used to be the second most popular before debit cards – but all that has changed now.

The rise of card payments has just about done away with chequebooks in the UK and just about the only place you see the use of cheques is an oversized version when someone wins the lottery or there is a televised charity appeal.

Debit and Credit Cards

Although there are plenty of warnings about the use of credit cards and the charges they can attract, many people use both kinds of cards for everyday purchases now. Debit cards are more popular, as they are more directly linked to how much money you actually have in your bank account.

Cards are definitely more convenient than cash and are accepted just about everywhere these days. Transactions can sometimes take much longer to clear – which can lead to problems for both customer and seller. But since the pandemic, online payments have become far more common.

Mobile payment options have become more popular

E-Wallets

E-wallets and other forms of mobile payment systems have become increasingly popular as the global market has increased. Making purchases across borders is so much easier when an e-wallet can be used. There is no need for exchange rates and the transactions are just about instant.

Many of the big name e-wallets have become even more prevalent on the high street as well, with more shops, bars and restaurants happy to take payment through e-wallets stored on mobile phones. With the commercial world becoming more digital, e-wallets could become even more popular in the coming years.

Cryptocurrencies

Once seen as something for more underground sections of society, the use of cryptocurrencies has exploded in recent years. Bitcoin is the main digital currency that just about everyone knows, or is investing in. But there are plenty of other cryptocurrencies looking to become the standard in this world.

Many people have been attracted to the investment opportunities for these deregulated currencies that promise anonymity and no transaction fees. But even with the increase in use, there are worries that the vitality of a currency that is not looked after and controlled by any national institution could cause problems for novice users. This is one kind of payment method that should be fully investigated before jumping straight in to use.