Just because e-commerce payments occur over the Internet doesn't mean that they all happen in the same way. As e-commerce has expanded at a rapid rate, the methods by which people pay for goods and services online have diversified. Customer preferences around e-commerce payment methods vary considerably in different parts of the world, and the field is constantly evolving. Globally, credit and debit cards and digital wallets are the most popular e-commerce payment methods, but other payment methods, such as bank transfers and cash on delivery (COD), remain popular in certain regions. The use of mobile payments is also growing, particularly in markets with high smartphone penetration.

Here are some of the most popular global e-commerce payment methods available today:

• Credit and debit cards
  Credit and debit cards are the most common payment methods for ecommerce transactions. They allow customers to make payments quickly and conveniently.

• Digital wallets
  Digital wallets, such as PayPal, Apple Pay and Google Pay, have become increasingly popular. They allow customers to store payment information securely and make payments with just a few clicks. According to Statista, digital wallets started pacing alongside credit cards for the first time in 2020 as the most popular online payment method in the US, and it's a trend that has only continued.

• Bank transfers
  Bank transfers, also known as electronic funds transfers (EFTs), allow customers to transfer money from their bank account to the business's bank account. While bank transfers are used around the world, they are particularly popular in Europe and Asia. According to a survey by the European Central Bank, bank transfers accounted for 45% of e-commerce payments in the European Union in 2020.

• Cash on delivery (COD)
  COD is a payment method in which customers pay for their purchases when they receive them, not before. This payment method is common in countries where credit and debit card usage is low. Nielsen's Global Connected Commerce Survey noted that around 83% of customers in India preferred COD when paying for online purchases.

• Mobile payments
  Mobile payments allow customers to pay using their mobile devices. Mobile payments are projected to account for more than 43% of total retail ecommerce sales in 2023, an increase from around 42% in 2022.