Pay by link - Get paid with secure payment links

If you are wondering why there’s such a fuss about an age-old process, then let’s deviate slightly and take a bird's-eye view of the digital economy. The annual shipment of smartphones has grown 100% since 2010 to cross 1.2 billion in 2023, and IoT (Internet of Things) devices are projected to witness a growth of 2.5 times from 2023 to reach 39 billion by 2029. With e-commerce sales growing at a phenomenal rate of 60% from 2010-2022, online and brick-and-mortar businesses are keen to streamline every aspect of their operations to provide superior customer service.

One of the key considerations is building an uncomplicated payment system that’s swift and secure for both the merchant and the consumers. The Pay by Link payment method enables businesses to send secure payment requests to their consumers via straightforward links, thereby simplifying the process of online payment. This eliminates the necessity for a comprehensive e-commerce platform or intricate payment infrastructure.

What is pay by link?

Imagine a secure, customisable URL that businesses can transmit to their customers to collect payments—that’s a ‘payment link’ or ‘Pay by Link.’ With the increasing significance of digital transactions, particularly in the post-COVID era that has seen a surge in contactless payments, pay by link has become a preferred method for businesses of all sizes, particularly those that lack a fully integrated online store or payment gateway.

You can easily send a payment link to consumers via email, SMS, social media platforms, or messaging applications such as WhatsApp once it has been generated by your payment processing system. Upon clicking on the link, the consumer is directed to a secure payment page where they can finalise their transaction using a variety of payment methods, including credit cards, debit cards, pay by bank, or other payment gateways.

The simplicity of this solution is its greatest asset. Businesses can now offer their consumers a seamless payment experience by creating and sharing a link, eliminating the need for complex checkout processes and infrastructure-heavy payment gateways.

Standout benefits of pay by link

●     User-friendliness: The establishment of a payment link is effortless and does not necessitate complex technical skills, rendering it accessible to a wide range of businesses.

●     Versatility: Payment links are applicable in a variety of industries, including retail, hospitality, and service sectors.

●     International usage: Businesses can reach consumers worldwide without geographical constraints, as the payment is processed online.

●     Zero data entry: Removing the need for customers to enter financial data also removes the risk of mis-entry or data compromise, which is a significant boon for both parties to the transaction.

How does a payment link work?

While pay by link is a comparatively simple process vis-à-vis traditional POS systems, it follows a structured framework as given below:

●     Create the payment link: The merchant goes into its Pay by Link service provider (like Stripe, Wonderful, or Stax Payments), enters the payment information (like the amount, currency, item description, etc.), and then generates a unique, safe payment link. Some providers also let you customise the payment page, like adding company logos and other design elements.

●     Share the payment link: Once the link is made, businesses can send it to customers through email, text messages, social media, or messaging apps. Businesses operating outside the scope of traditional e-commerce specifically benefit from this payment processing system.

●     The customer makes the payment: A tap on the link and customers are taken to a safe payment page. This page usually has more than one way to pay, like credit/debit cards, instant open banking payments, and even digital wallets.

●     Payment confirmation: Both businesses and customers get proof (usually via email or text alerts) as soon as the payment is processed. The pay by link service provider will then handle the funds and deposit them into the business's bank account. Often, a business dashboard will let the business see real-time updates on payments.

Key benefits

●     Faster payment cycle: Pay by link expedites the payment processing by facilitating instant bank payments, pay by bank, and other quick settlement payment methods. This not only makes the process faster for the consumers but also transfers payments to merchants’ accounts in real time.

●     Simplified process: You can avoid cumbersome e-commerce payment processes or the complexities of traditional POS systems to transfer funds.

●     Reduced cart abandonment: Fewer steps mean less time to complete a transaction; hence, a significant reduction in cart abandonment.

How to take payments with payment links?

Typical traditional payment gateways mandate a website that gets integrated with the payment system to process commercial transactions. However, if you are not a full-fledged e-commerce entity, payment links are a powerful method for accepting online payments.

Even without a website, you can accept payments online using pay by link in the following way:

●     Leverage social media platforms: Businesses can distribute their payment links on platforms such as Facebook, Instagram, or Twitter, enabling customers to complete transactions without exiting the platform.

●     Email invoices: A payment link is included in the email that can be sent to clients by numerous service-based businesses, including consultants, freelancers, and contractors.

●     Messaging platforms: Directly distribute payment URLs through messaging platforms such as WhatsApp or SMS. This is especially beneficial for businesses that operate through mobile communication or in-person interactions but still require a method for consumers to make online payments.

●     Pay by link APIs: Some payment providers also provide Pay by Link APIs, which enable businesses to automate the process of creating payment links and integrate them directly into their existing software systems or mobile applications. This is especially beneficial for businesses that require a more personalised payment solution or have higher transaction volumes.

Businesses can provide consumers with a flexible and seamless payment process without the necessity of a website, thereby improving the customer experience and minimising technical challenges.

How to link my bank account with online payments?

The basic prerequisite for accepting payments online is to link a business account with the payment platform. Let’s simplify the process through some easy-to-implement steps:

●     Account configuration: The majority of payment service providers will require you to input your business bank account details during the initial configuration. This information will facilitate the deposit of funds accrued via the payment connections.

●     Verification process: Payment providers sometimes necessitate organisations to authenticate their bank accounts for security and compliance purposes. This may entail verifying a micro-deposit, wherein the supplier transfers a nominal sum into your bank account, which you subsequently confirm on the site; or by using your mobile banking app and biometric data to securely verify and your account with the payment provider.

●     Effortless transfers: Upon linking your account, any payments received through your payment links will be deposited into your bank account. Transfer times may vary by provider, occurring either instantaneously (with instant payments) or within several business days.

Certain advanced payment providers facilitate bank payment services, enabling clients to transact directly from their bank accounts without the necessity of entering credit or debit card information, hence further optimising the payment process.

Are payment links safe?

Given increasing cyber crimes, the most pertinent concern for businesses and consumers is the security of the payment interface. Pay by link service providers ensure the highest fraud detection and prevention methods by deploying multiple advanced technologies. Some of these are:

Encryption

Encryption is essential for payment link security. SSL encryption protects client payments when they click on payment links. This makes personal and financial data transferred between the consumer and payment processor unreadable to other parties. Encrypted links protect transaction data from hackers.

Two-factor authentication

Multiple payment processors offer or require two-factor authentication for further security. Two-factor authentication requires users to provide a one-time password (OTP) emailed to their phone or email. This prevents fraud, especially if login credentials are compromised, by preventing unauthorised payment link access.

Regulatory compliances

Reputable Pay by Link services follow PCI DSS for card transactions, although because of inherent Strong Customer Authentication (SCA) in an open banking transaction, PCI DSS is not relevant for open banking payments. This standard specifies how businesses must securely receive, handle, store, and transmit credit card information. Pay by Link providers fulfil the highest cardholder data security standards by following these guidelines.

Pay by Link providers in the UK must follow GDPR and PSD2 data protection and payment requirements. These standards require transparency and consent for data processing to protect customer data. Online payments in PSD2 require Strong Customer Authentication (SCA), decreasing fraud in the European Economic Area.

5 of the best Pay by link service providers

Wonderful

Wonderful is a new player in the payment industry that offers a competitive pay by link service for businesses of all sizes. Its platform is easy to use, so businesses can create payment links and send them to customers through a variety of channels. Wonderful places great emphasis on security, making sure that every transaction is protected with advanced encryption technologies. Powered by the open banking system, this platform for pay by link in the UK also offers instant payments, which ensures real-time settlement and a secure network. Wonderful's dedication to customer support and low transaction fees (starting at just £9.99 for 1,000 monthly transactions) make it a top choice for small and medium-sized businesses that are seeking flexible and affordable pay by link service.

Stax payments

As part of its comprehensive payment processing services, Stax provides a robust Pay by Link feature. Businesses can promptly generate and transmit payment credentials via email, text, or social media platforms with Stax. Stax's platform is the optimal choice for organisations seeking a comprehensive solution, as it facilitates the integration of retail POS systems, mobile POS, and invoicing. The transparent pricing structure of Stax, starting at $99 per month, is a significant advantage for businesses with higher transaction volumes, as it offers cost savings.

GoCardless

In addition to their expertise in direct debits and recurring payments, GoCardless offers businesses Pay by Link services. Businesses can save money on card processing fees by using GoCardless's payment link feature, which allows customers to pay directly into their bank accounts. Subscription-based businesses or organisations requiring recurring payments find this service very valuable. GoCardless makes it even easier to accept payments by integrating with popular accounting programs.

Stripe

Stripe, a highly regarded payment processor worldwide, particularly with developers, is recognised for its user-friendly API and a variety of payment solutions, such as Pay by Link. Stripe allows businesses to generate payment links and distribute them directly to consumers, facilitating payments through digital wallets, bank transfers, and credit cards. Stripe's Pay by Link API simplifies the integration of this functionality into any existing platform. Stripe is an excellent option for businesses that require a global presence and the ability to integrate with ease. Additionally, it provides advanced fraud detection and multi-currency support.

Lloyds bank

Lloyds Bank provides Pay by Link UK to business enterprises in the country through its Cardnet service. Lloyds enables businesses to accept payments online without the need for a website by providing secure payment links to clients. Lloyds, a known name in banking, has solid security features, making it a popular choice for SMEs seeking dependability and consumer trust. Their Pay by Link UK system accepts all major payment methods, including credit/debit cards and pay by bank services, providing greater payment options.

Conclusion

Factors like ease of use, cost-effectiveness, flexibility such as payment gateway integration, and strong multi-layered security make Pay by Link an excellent choice for businesses of all sizes.

As the adoption of payment links becomes increasingly popular, exercise caution when choosing a provider. By selecting the ideal pay by link service provider you can optimise your payment process, increase cash flow, and provide your customers with a smooth transaction experience.

FAQs

What is the process for creating a payment link?

You can create a payment link by logging into a payment platform, providing the amount and customer information, and generating a unique URL. Send this link via email, SMS, or other messaging services.

How to receive a payment via link?

Once the customer clicks on the payment link and enters the payment details, the pay by link provider liaisons between the buyers' bank and the sellers' bank and facilitates fund transfer to the latter’s account upon proper authentication.

How to create a payment link online?

Pay by link services like Wonderful or Stripe allow online payment link creation. Log in, select the payment amount, and create a shareable link for your customers.

Which method of online payment is right for customers?

Customer convenience and preference determine the best online payment method. Credit/debit cards, Pay by Bank, QR code payments, digital wallets, and instant payments offer flexibility, speed, and security. Businesses should offer multiple methods to satisfy a wide range of customers.

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