Glossary
What is a payment method? E-commerce definition
June 4, 2026
A payment method is the option offered to the customer to pay for their order online: credit card, digital wallet (Shop Pay, Apple Pay, PayPal), buy now pay later (BNPL), bank transfer, or cash on delivery. At checkout, the more adapted the methods are to the market and buying habits, the more conversion increases. This is distinct from the payment gateway (the technology that processes the transaction) and the payment integration (the connection to the store).
Summary
Definition: payment methods, PSP and checkout
In e-commerce, payment methods are what the customer sees and chooses at the final stage of purchase. Behind each option lies a provider (PSP) that authorizes and captures the transaction, but on the UX side we speak of "paying by card", "paying with PayPal", etc.
Common categories. Credit/Debit cards: Visa, Mastercard, American Express, Cartes Bancaires (CB) in France. Digital wallets: Shop Pay, Apple Pay, Google Pay, PayPal, Amazon Pay. BNPL (Buy Now Pay Later): Klarna, Alma, Affirm, payment in 3 or 4 installments. Bank transfer / direct debit: SEPA, manual transfer (B2B, high order values). Cash on delivery (COD): cash or card to the delivery person (depending on the carrier). Gift cards / store credit: prepaid balance (gift card).
Useful distinctions. Payment method vs payment gateway: the method is the customer option; the gateway is the infrastructure (Stripe, Adyen, Shopify Payments). Payment method vs payment integration: the integration connects the gateway to Shopify; the methods are the visible result at checkout. Payment method vs online payment: online payment is the global concept; payment methods are the concrete terms.
In the same spirit, Express checkout vs classic card payment: Shop Pay / Apple Pay prefill information; card payment requires entry or saving. Payment method vs 3D Secure: 3DS is a security step on certain cards, not a distinct payment method.
Why payment methods are important in e-commerce
A customer ready to buy may abandon their purchase if their usual payment method is not offered, or if the payment step seems insecure.
The essential points to remember are as follows. Checkout conversion: offering Shop Pay, Apple Pay, or PayPal reduces mobile friction. Trust: Visa, PayPal, and Klarna logos reassure users before they click "Pay". Local markets: iDEAL (Netherlands), Bancontact (Belgium), and local cards depending on the country. Average basket value: BNPL can unlock higher purchases if well calibrated. Declined rate: multiple routes (card + wallet) compensate for a bank rejection. Payment abandonment: a frequent cause of cart abandonment at the final screen. B2B vs B2C: bank transfer or deferred invoice for professionals; card and wallets for individuals.
Displaying too many payment methods can also overwhelm the customer. The balance: cover the habits of your target audience (DTC France, EU export, US) without visual clutter.
Set up payment methods on Shopify
Activation in Settings > Payments (Shopify Help Center). Shopify Payments: cards, Shop Pay; BNPL and wallets depending on the country. PayPal: one-click activation, linked PayPal Business account. Apple Pay / Google Pay: via Shopify Payments (verified domain). BNPL: Klarna, Shop Pay Installments, partner apps. Third-party providers: Stripe, Mollie, Adyen if Shopify Payments is unavailable. Manual payment methods: bank transfer, COD (excluding auto-capture).
Configuration Tips. Enable Shopify Payments as a priority if eligible (Shop Pay, unified reports). Add PayPal if your audience uses it (trust, one-click). Enable express wallets on mobile (Apple Pay, Google Pay). BNPL only if margins and average order value justify it. Test each payment method in test mode and then with a real order. Display payment method logos in the footer or product page (reassurance).
Shopify Checkout displays activated payment methods on a single secure page. Avoid redirects to unknown domains if a native alternative exists.
In summary
The essential points to remember are as follows. Payment methods = options offered to the customer at checkout (card, wallet, BNPL…). Distinct from gateway, payment integration, and 3D Secure. Direct impact on conversion, trust, and cart abandonment. Adapt to the market: FR, EU, US; mobile = express wallets. Shopify: Settings > Payments; Shopify Payments + PayPal + BNPL as needed. Test, measure, avoid overload or missing payment methods.
Associated terms, FAQ, and resources
Associated terms
Checkout: step where the customer chooses the payment method.
Payment gateway: infrastructure behind the methods.
Shopify Payments: native cards and Shop Pay.
Buy now, pay later: split payment.
3D Secure: card authentication.
FAQ
Which payment methods should I offer on Shopify in France?
Common base: cards (via Shopify Payments), Shop Pay, PayPal. Add Apple Pay / Google Pay and a BNPL (Klarna, Alma) if the average bin and margin allow it. Check the eligibility of each service in your admin.
Payment methods and gateway: what is the difference?
The payment methods are the visible options (card, PayPal). The gateway is the provider that processes the transaction in the background. One gateway can power multiple methods.
Should I offer payment in installments?
BNPL can increase conversion on high baskets, but it has a merchant cost and specific refund rules. Test on a category before global deployment.
Why does Shop Pay improve conversion?
Shop Pay remembers email, address, and card for Shopify customers: checkout in a few clicks, especially on mobile. It is an express wallet integrated into the native checkout.
Going further
Sources: Shopify Help Center (Payments), Shopify Payments, PSP documentation (PayPal, Klarna).
Enzo
13 May 2026
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