The difference between online and in-store payment providers
One customer pays for a pair of shoes in your store, another through your online store. To the customer, these are two ways of buying from the same brand. Behind the scenes, though, they can be two completely different payment flows.
Online payments come with different requirements, technology, payment methods and processes than in-store payments. If you sell through both channels, you quickly end up dealing with multiple systems and separate reports. That is where omnichannel payments come in. Omnichannel means you bring both online and in-person payments together in a single payment environment. This gives you a better overview and lets you align your payment processes more effectively.
Online and in-person payments: what is the difference?
With an online payment, the transaction takes place in a digital environment, such as an online store or app. A payment service provider (PSP) makes sure the customer can pay with a range of payment methods such as iDEAL | Wero, credit card, PayPal, Klarna or other online payment options.
With an in-person payment, the customer pays at the checkout on location using a payment terminal. The customer then pays with a debit card, credit card or mobile wallet, for example.
The differences at a glance
Online payments
With online payments, it is important that the customer can pay quickly and easily. The payment provider connects the online store or app to various payment methods and processes the transactions.
Key points to keep in mind include:
- integrations with e-commerce platforms and APIs;
- support for relevant online payment methods;
- checkout conversion;
- fraud prevention and security;
- processing refunds;
- transaction reporting and reconciliation.
In-store payments
For payments in a physical store, hardware plays a bigger role. The payment terminal needs to work with the POS system and support the payment methods you have chosen, for example.
Important factors include:
- Reliable, user-friendly payment terminals;
- Integrations with a POS system;
- contactless and mobile payments;
- speed and availability at the checkout;
- processing returns;
- insight into transactions per store or location.
If you only have an online store or only a physical store, these payment flows can work perfectly well on their own. Do you sell through both channels? Then how your systems work together becomes increasingly important.
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Why choose a single omnichannel payment provider?
Say a customer buys a product online and then returns it to your store. It would be odd if the store could only refund them in cash, for example. Or the other way around: someone sees a product in your store, orders it online later, but cannot use the same payment methods there. To the customer, your online store and physical store are part of the same organization. So it makes sense to look behind the scenes at how you can connect those channels better.
With an omnichannel payment provider, online and in-store payments can be processed within a single payment infrastructure. That can bring several benefits. For example, you get one central overview of all transactions across your sales channels. This makes reporting and reconciliation easier and saves teams from piecing together information from multiple systems.
Return and refund processes can also be better aligned. And when you add new stores, online stores or sales channels, you do not have to set up a completely separate payment process for each one.
When should you choose an omnichannel payment system?
The best payment solution for you depends mainly on how you sell. There are three scenarios.
- Only a physical store or business
In this case, a specialized in-store payment solution may be enough. The focus is mainly on reliable payments at the checkout and a good connection with your POS system. - Only an online store
If you only sell online, an online payment service provider is the obvious choice. You can focus entirely on the online checkout, relevant online payment methods and integrations with your online store environment. - A store and an online store
In this situation, it makes sense to choose an omnichannel provider. Several providers, such as Buckaroo, Mollie, Adyen and Stripe, offer solutions that bring different payment flows together.
Do not just look at what you need today. Think about your plans for the future too. Do you want to open new stores, expand internationally or connect your online and offline sales channels further? Then your choice of payment infrastructure can determine how much extra work that creates later on.
One customer, multiple payment moments
For consumers, it makes no difference whether they buy in your store or online. They research online, buy in store, order on their phone and return items through whichever channel is most convenient at the time. Your payment strategy needs to move with them. By combining online and in-store payments, your payment environment fits better with both the customer journey and your internal processes.
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