How to win sales at checkout: 5 popular payment methods for SMBs
Ever had a customer rush into your store, clearly in a hurry—car double-parked, flashers blinking, phone in hand, no wallet? They grab what they need, make it to the counter… and then you hit them with the dreaded words: “Cash only, sorry.”
They pat their pockets, find nothing but lint and a random trinket their kid gave them for safekeeping. No cash—because honestly, who even carries it anymore? Frustrated, they leave the item behind, rush back outside, and just in time to get slapped with a parking ticket.
You just lost a sale—and maybe a customer for life.
We’ve all seen it happen. And let’s be real: in 2025, turning away someone who’s ready to pay just because they don’t have cash? That’s on you.
Payment options are critical for SMBs. Here’s why:
If you’re not offering the payment options your customers expect—whether that’s Apple Pay, a credit card, or buy now, pay later—you’re quietly (or loudly!) losing sales. In fact, up to 13% of online shoppers abandon their cart when their preferred payment method isn’t available. That’s a major leak in your potential revenue.
But here’s the patch: you don’t need to support every obscure method. You need to offer the right ones. Research indicates that US-based businesses with modern credit card processing have increased their revenue by at least 20% on average, both in-store and online, in the last year. Offering the right payment options to potential buyers can increase sales, build trust, and reduce cart abandonment.
The 5 most popular payment methods for SMBs
Customers want what’s fast, familiar, and frictionless. Knowing this as a business owner, you should be able to offer the right mix of payment types to make it convenient for people to buy your products.
Let’s break down the five most popular payment methods every SMB should consider to help build a checkout experience that works for your customers and boosts revenue.
1. Credit and debit cards
Still the gold standard. Credit and debit cards are the default card payment method around the world, both in-store and online. According to Federal Reserve Bank Services, people will spend up to 83% more when using a credit or debit card vs. cash. The average cash purchase is $22, while the average credit/debit card purchase is $112.
Why customers love them:
They’re quick, reliable, and work almost everywhere. Credit cards also offer perks like rewards, purchase protection, and (let’s be honest) the illusion of more money than we actually have.
Why you should offer them:
Consumers expect this option. Accepting cards is basically table stakes for doing business online or in-store.
What to watch out for:
Processing fees can sting (up to 3.5%), and cards carry a higher risk of fraud and disputes. That said, the boost in completed purchases usually outweighs the cost. Be sure to do your homework and find a merchant service provider that offers low fees that make sense for your business.
2. Mobile wallets (Apple Pay, Google Pay, PayPal)
Tap-to-pay isn’t just for your coffee run anymore; it’s everywhere. Mobile wallets link directly to your customer’s bank account or card and let them pay using face ID, fingerprint, or a simple tap. Looking at the future of payments, Gen Z is leading the charge in adopting digital and contactless payments, with 51% regularly using mobile wallets like Apple Pay and Google Pay, and only 10% relying on cash for regular transactions.
Why customers love them:
Speed, security, and zero need to dig through a wallet. On mobile, this often means a one-tap checkout experience. Convenience is queen.
Why you should offer them:
Remember the example of the “cash-only” mini mart? That’s why. The same goes for online stores – buyers enjoy the convenience and simplicity of a one-click payment, so they don’t need to go digging for their physical card or wallet. Plus, mobile wallets help reduce fraud thanks to built-in authentication.
What to watch out for:
You might need to upgrade your in-person POS system to accept contactless payments. Plus, not all customers use wallets yet, though that’s quickly changing.
3. Buy now, pay later (BNPL)
BNPL services like Klarna, Afterpay, Affirm, and Shop Pay Installments let customers split their purchase into smaller payments over time, interest-free (usually).
Why customers love them:
More flexibility = less hesitation. BNPL helps people afford bigger purchases without needing a credit card. And no interest? Yes, please.
Why you should offer it:
BNPL has been shown to increase average order value and conversion. It’s especially powerful for e-commerce stores selling high-ticket or lifestyle products.
What to watch out for:
BNPL providers often charge you, the merchant, higher fees than credit cards. But the potential lift in revenue can make it worthwhile.
4. Bank transfers & direct debits
Popular in Europe, Canada, and parts of Asia, these payment options include ACH transfers, SEPA, iDEAL, and Interac. They move money directly between bank accounts—no cards involved.
Why customers love them:
They’re secure, trusted, and ideal for larger or recurring payments. Customers don’t have to worry about maxed-out cards or expiring payment details.
Why you should offer them:
If you run a subscription service, B2B business, or handle big transactions, direct debits are a great way to reduce failed payments and lower churn.
What to watch out for:
Bank transfers can be slower to clear, and in some cases, customers must manually initiate the payment. Fees can also vary depending on the bank or region—some transfers are free, while others carry per-transaction or cross-border costs that can eat into your margins. Not ideal for impulse buys or real-time purchases.
5. Cash
Wait… cash? Yes. Even in 2025, cash still has its place – especially for small, local businesses that sell online but fulfill offline.
Think of a bakery or café taking orders online but letting customers pay when they pick up, a grocery store delivering groceries and collecting cash at the door, a handyman or home repair service getting paid in cash after the job’s done, or even an event vendor reserving tickets online but accepting cash at the entrance.
Why customers love it:
It’s familiar, doesn’t require a bank account, and keeps finances analog. Some people still prefer using cash, particularly older customers, unbanked individuals, or those making small, local purchases. It’s tangible, controlled, and private – especially for things like food delivery or home services.
Why you should offer it:
Though most have gone digital, there are the outliers that enjoy the pocket bulge, and they, too, are paying customers. If you run a local SMB, like a bakery, dry cleaner, handyman service, or restaurant, offering a “Cash on Pickup” or “Cash on Delivery” option can help close sales with people who don’t want to enter credit card info online or who don’t trust digital payments.
What to watch out for:
For online payments, there’s no real-time confirmation when paying with cash. You’ll need to track cash orders manually, and there’s always a risk of no-shows or unpaid deliveries. It also won’t work at scale or for broader e-commerce fulfillment.
How to choose the right payment options for your business
Knowing what type of business you’re in and who your target audience is can help you drill down to the payment types you should be offering. It’s a mix of data, customer insight, and alignment with how you sell.
Maybe you’re a small online brand trying to keep fees down. Maybe you run a subscription service and can’t afford failed renewals. Maybe your customers are abandoning checkout because they don’t see Apple Pay or Klarna.
The right payment options should do two things:
- Remove friction for your customer, and
- Work with your margins, operations, and business model (both physical and digital)
Integrating and managing multiple payment types
For many SMBs, payments start simple: one product, one audience, one way to pay. But as you grow, with more customers, regions, and complexity, your checkout can either stay smooth or become a tangled mess.
The easiest way to avoid chaos is to use a payments platform that provides the right infrastructure for your business today and tomorrow. Platforms like Stripe, Shopify Payments, or Square are built to handle complexity behind the scenes. You can enable or disable payment methods with a click, support international customers without spinning up new bank accounts, and let the system automatically manage things like tax, currency conversion, and payment confirmation.
Once infrastructure is nailed, checkout is your moment of truth. When you ask a customer to slow down, type out unnecessary details, or dig through their wallet, you’re giving them time to second-guess the purchase. If 70% of your traffic is mobile (and it likely is), your payment options should be mobile-native. One-tap wallets like Apple Pay, Google Pay, and Shop Pay are the standard.
Payment platforms today offer dashboards that go way beyond “paid or not paid.” You can see which methods convert, where drop-off happens, and which ones consistently fail. If a payment method isn’t pulling its weight – or worse, causing problems, cut it. A cluttered checkout kills momentum.
Want to go deeper? Run A/B tests. Try Klarna one week, Affirm the next. Compare average order values. See which drives higher completion. Small tweaks at checkout can lead to big lifts in revenue.
Remember, payment is part of your product. Get it right, and customers won’t even notice it. Get it wrong, and they might not come back.
Build a payment experience that converts
Your customer’s last interaction with your brand shouldn’t be a frustrating checkout page. It should be fast, seamless, and intuitive – something they barely have to think about.
The right payment methods give your clients a better checkout experience and help you get paid more often, by more people, with less friction. Win-win.
Remember the mini-market example?
Now picture the same scene—but this time, your store takes tap-to-pay. The customer taps their phone, grabs their purchase, and is out the door before the parking officer even notices they parked like an a**.
They just saved themselves a $100 ticket—and you just saved the sale.
They’re feeling good, and suddenly, that online ad for the boots they’ve been eyeing hits just right. It’s 20% off. One tap with Google Pay, and it’s a done deal. Feels like fate, right?
And you know what else? That old washing machine’s been making sounds like it’s chewing gravel. They’ve been holding off on a replacement—until they see you offer Klarna. No-interest payments, easy terms. The cost spreads out so effortlessly, it doesn’t even register. So they go for it.
Later, they’re home, finally winding down. There’s a $20 bill on the counter and pizza sounds like the perfect end to a chaotic day. Your business made their day smoother—and they’ll remember that.
These are your clients. Serve them, and they’ll serve your business.
