We live in the Digital Era, which means that more things happen online. More online payment providers have been created, too, allowing people to interact with various websites more effectively. PayPal, Google Pay, Apple Wallet, and more make it possible for people to have their money online and ready to spend more effectively
One of the reasons why people use online payment providers is to centralize their money. Freelancers and small businesses will often receive payment electronically into PayPal or another online account. Rather than choosing to transfer the money into their bank account, they can use the payment provider account instead.
As more online payment providers go mainstream, there are more benefits of using them. They have apps to make it easier to pay in stores without having to hand over a card. There's a higher level of security involved with these providers. Plus, it's possible to send money person to person electronically so that it's a virtually instant transfer.
Meanwhile, a lot of FX & CFD brokers accept PayPal as a funding method for investment accounts. This ensures that those who choose to use online payment providers can invest more effectively without having to wait for transfers to occur into traditional banking accounts.
There have also been a number of PayPal acquisitions over the past few years, demonstrating that they are ready to invest in more tech that can enhance the user experience. One particular acquisition was Honey, an online couponing tool. It has allowed them to learn more about the sales funnel, including buyer behaviors and what else a person may have been looking at prior to the actual purchase.
Paying with Visa, MasterCard, and Discover are still options. However, with the amount of fraud that's taking place, many people are hesitant to enter their credit card number in an online store or to add money into an investment account. Instead, they'd rather use a two-step authentication to transfer money from their PayPal or another online account.
The number of users of online payment providers, sometimes known as e-wallets, has been increasing. Google Pay has shown that the number of users is rising worldwide. PayPal has users around the world - and their recent acquisition of Honey for $4 billion has allowed them to tap into 17 million more users who are part of the younger demographic.
The days of entering credit cards and bank accounts into online forms to open investment accounts and make purchases are ending. Even in stores, people feel more comfortable with flashing a screen on their phone to make purchases. With more people being paid directly into e-wallets, the tech is changing. Businesses who learn to adapt are the ones who will thrive moving forward.