Payment method
Payment method
Checkout
How a customer pays, such as a credit or debit card, PayPal, Shop Pay, Apple Pay, a bank transfer or buy now, pay later.
What is Payment method?
Payment methods fall into a few groups: cards (credit and debit), digital wallets (Apple Pay, Google Pay, Shop Pay, PayPal), bank payments (such as ACH in the US) and buy now, pay later services that split a purchase into installments.
Not every method works for subscriptions. Recurring charges need a method that can be stored and charged again later without the customer present. Cards and most major wallets support this. Some local payment methods and many buy now, pay later options are one-time only, so check which methods your subscription app can charge again.
Example
For example, a store that offers cards, Apple Pay and Shop Pay at checkout may find that most subscribers save a card or wallet, while one-time buyers use a wider mix, including installments.
Why Payment method Matters
Offering the methods your customers prefer raises conversion, and choosing ones that support recurring charges keeps subscriptions running.
Explore More Terms
Browse our complete glossary of e-commerce and subscription terms.
