Online payments: what is link payment?
In 2023, 80% of global customers have made online payments. And Paybylink was one of the most popular online payment methods. Thus, companies like PayPal expanded their PayByLink offerings, reflecting the demand for this digital payment option.
Even though link payment is a form of online payment, no website is needed to take payments via this method, which justifies its huge popularity internationally.
For example, a customer might check a product in-store and decide to buy it later. The merchant can send a PaybyLink via text, allowing the customer to complete the payment directly from their phone. Or, the customer might also want to check the product and pay for it online and then pick it up at the store.
Similarly, at a local market, a vendor can also send a payment link, making it easy for customers to pay without the need to carry cash.
There are many other scenarios where PaybyLink can be beneficial, whether it’s for event tickets, freelancer services, or subscription services. These options not only simplify transactions but also enhance the overall shopping experience.
By accepting Pay by link, merchants can better meet the preferences of today’s customers, making it easier for them to complete their purchases. Thus, reducing purchase abandonment.
This article provides a detailed explanation of how PaybyLink works and its advantages. It then presents specific case studies, such as XO Hotels and Gelderland Libraries, to illustrate how PaybyLink helps businesses improve operational efficiency and enhance the customer experience. Finally, the article introduces how Silkpay’s PaybyLink service can help merchants.
What is PaybyLink?
PaybyLink is a convenient payment method where merchants generate a secure payment link and send it directly to customers.
Customers click on the link and choose their preferred payment method (Visa, Mastercard, IDEAL, Alipay, WeChat Pay, UnionPay etc.) and complete the transaction.
The payment link is often sent through channels such as email, SMS, or social media, making it easy for customers to pay without needing to go through all the steps of paying in a Website.
The typical PaybyLink process works as follows:
The merchant generates a payment link, which includes the necessary information such as the transaction amount and order details.
The merchant sends the payment link to the customer via email, SMS, social media, or other channels.
The customer clicks on the link, enters the payment page, and can choose from different payment methods (such as bank cards, e-wallets, etc.) to complete the payment.
A payment confirmation is sent to both the customer and the merchant when the payment is complete.
Advantages of link payment
A higher conversion rate
PayByLink helps merchants increase conversion rates by making payments simple and personal. When customers receive a direct payment link from the merchant; whether by email, SMS, or chat; it creates a more attentive interaction, showing care for each transaction.
Link payment also shortens the payment process to just one step, allowing customers to pay quickly, reducing drop-offs significantly.
A higher successful transaction rate
Our solution provides customers with a wide range of payment options, from credit and debit cards to e-wallets (Visa, Mastercard, UnionPay, Alipay, WeChat Pay, IDEAL). This flexibility allows each customer to pay with their preferred method, improving the overall experience and increasing the likelihood of a successful payment.
By supporting various payment methods, we enable customers to make payments without constraints, regardless of their location, making it ideal for cross-border and remote purchases.
A higher return with a cost-efficient solution
For small and medium-sized enterprises or merchants who do not frequently handle face-to-face transactions, PaybyLink offers a cost-effective payment solution.
Our merchants don't need to invest in expensive POS equipment or maintain complex payment systems. They can simply create an account online, generate payment links from their backoffice, send it to clients and that’s it!
This not only reduces the cost of hardware and technical support but also makes the payment process more scalable, adapting to the different stages and needs of business growth.
Classic use cases for link payment
XO Hotels
XO Hotels had long faced difficulties with their payment processes, particularly with securing advance payments and managing last-minute cancellations. Many guests would book rooms without paying upfront, leaving the hotel vulnerable to sudden cancellations and financial losses.
In addition, those who wanted to pay for other guests required the use of complex authorization forms, which involved the exchange of sensitive personal information, increasing the risk of fraud and security breaches.
The hotel turned to PayByLink to address these issues. By integrating this payment solution, XO Hotels began sending secure payment links to guests immediately after they made reservations. This new system simplified the payment process, enabling guests to pre-pay for their bookings through a safe and user-friendly link, accessible via email or SMS.
The result? The pre-payments rate surged from 5.5% to 51.5%, significantly boosting the hotel's financial security. Moreover, 75% of online bookings were paid within 24 hours, reducing the occurrence of last-minute cancellations by 24%.
The use of payment links also brought operational improvements. Manual authorization forms became a thing of the past, reducing administrative burdens and enhancing security.
Guests could now make payments quickly and securely, without exposing personal data or risking fraudulent activities.
This streamlined process not only improved the efficiency of check-ins and check-outs but also enhanced the overall guest experience, allowing them to enjoy a more seamless stay.
Gelderland libraries
The Gelderland libraries were facing persistent issues with collecting overdue fees and membership payments. Managing these payments manually was burdensome for the administrative team, often resulting in delayed payments and time-consuming follow-ups.
This inefficiency in payment collection created additional workload for the staff and, at times, left payments unresolved.
To solve this problem, the libraries introduced payments via links, which allows them to send secure payment links directly to members through email or SMS. The system provided members with a quick and easy way to settle their overdue fees and membership payments remotely.
Members could simply click the link, which redirected them to a secure payment page, where they could complete the transaction without having to visit the library in person.
The result? Members responded swiftly to the payment links, resulting in a substantial reduction in delayed payments. Most members paid immediately after receiving the link, which made the payment collection process for the library easier and efficient. This new system not only reduced the administrative workload but also improved overall member satisfaction by offering a hassle-free payment option.
How to take link payments?
Silkpay makes it easier for merchants to accept payments via links.
Through the merchant’s backoffice or Silkpay’s app, our merchants can effortlessly generate secure payment links. Once created, these links can be shared with the customer via the merchants' preferred communication channels, such as email, social media, or instant messaging platforms like Facebook, WhatsApp, Instagram, and WeChat.
By using Silkpay's link payment feature, businesses can simplify the entire payment process, thereby enhancing the customer payment experience. Merchants only need to send a payment link, and customers can complete their purchases directly.
Conclusion
PaybyLink provides a simple yet powerful solution for businesses seeking to optimize their payment processes. By enabling merchants to generate secure links for transactions, it enhances flexibility, reduces operational costs, and offers a scalable approach to managing payments.
As demonstrated by the success stories of XO Hotels and the Gelderland libraries, PaybyLink can lead to increased payment success rates and operational efficiency.
Silkpay's PaybyLink solution further helps merchants provide a smooth, customer-centric payment experience, which is key to building long-term satisfaction and loyalty.
About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe and the Americas accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.
Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.
Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.
Sources
https://paybylink.com/en/blog-en/library-members-pay-very-quickly-thanks-to-paybylink/
https://paybylink.com/en/blog-en/paybylink-has-significantly-increased-payments/