Pay by link: Take payments with secure payment links

According to a report published by MarketsandMarkets the global payment processing solutions market is forecasted to grow at a CAGR of 9.2%, going from $103.2 billion in 2023 to $160 billion by 2028.

These stunning statistics are a result of shifts in consumer behaviour and the advancement in payment processing technology. Consumer behaviour studies also indicate an increase in the adoption of digital payment services due to convenience and safety and an increase in the use of mobile commerce platforms. 

Furthermore the 2024 Global Payments Report by McKinsey reveals that digital payment transactions experienced an impressive 27% growth in 2023, largely driven by developments like the Pay by Link payment method.

In this guide, we’re going to dive into the world of payment request links (Pay by Link), what they are, how they function, and the various ways they can be used across different industries. Let’s get started!

What is Pay by Link?

Pay by Link is a revolutionary payment solution that enables businesses to accept payments through secure payment links and QR codes that can be shared with customers through multiple channels such as email, SMS, WhatsApp, and other social media. It negates the requirement for expensive hardware, time-consuming set-up processes, and dedicated websites, making this service easily accessible and reasonably priced for any size business.

What are payment links?

A payment link serves as a digital solution enabling businesses to facilitate transactions through the creation of a unique URL or QR code. This payment link is shareable via multiple channels, including email, SMS, WhatsApp, or social media platforms. Upon clicking the payment link, the customer is directed to a secure payment page to finalise the transaction.

An overview of payment links in relation to traditional methods

●     Simplified configuration: Conventional payment methods frequently necessitate intricate integrations or physical devices such as card readers. Payment links address these challenges by providing a cloud-based solution.

●     Scope of expansion: Payment links are versatile, enabling businesses to connect with customers through various digital channels.

●     Global accessibility: The support for multiple currencies in payment links effectively addresses the needs of international customers, in contrast to certain traditional systems that are constrained by geographical or currency limitations.

Pay by Link is a method that extends beyond simply making payments; rather, it is an ideal payment structure that integrates flexibility and security, along with an outstanding user experience. The system's operation is based on an advanced network of application services and secure communication protocols, which enables businesses to formulate and distribute distinctive payment links through a wide range of channels.

The entire technical architecture comprises several levels that are interconnected strategically. The system can be considered as one that designs exclusive codes or identifiers for every transaction processed through it by use of effective encryption and secure routing mechanisms. This makes it possible to monitor the payment process in real time, perform automated reconciliation of payments, and combine such functionality with the already existing ones in the enterprise systems.

How does Pay by Link work?

Pay by Link technology streamlines the payment process into three straightforward steps, enhancing accessibility for both businesses and customers. Let’s take a closer look at the details:

Step 1: Generating payment links

First off, companies should access the dashboard of their payment provider or payment platform. During this step, their login details are provided while entering certain key transaction information to generate a payment link:

●     Amount: This indicates the full sum that will be payable, and taxes might or might not be included.

●     Currency: There are typically many currency options available to payment links, which make them more usable worldwide.

●     Description: This is a concise overview of the product or service being acquired, aimed at providing clarity for customers.

Advanced payment link platforms such as Stripe and Razorpay offer additional customisation options, including options to incorporate promotional discounts, taxes, and detailed itemised breakdowns. Certain Pay by Link providers allow businesses to establish expiration dates for their payment links, which helps maintain relevance for particular campaigns or transactions.

Step 2: Sharing the payment link

After the Pay by Link is generated, it can be shared across different communication channels, such as:

●     Email: An excellent choice for sending invoices or reminders about unpaid bills.

●     SMS: A quick and effective method for urgent transactions.

●     Social media platforms: You can include payment links in posts, direct messages, or advertisements to encourage impulse buying.

●     Messaging apps: Services like WhatsApp, Telegram, or Messenger allow for instant payment requests, fostering a personal connection.

This capability to share across various channels enables businesses to engage with customers where they are most active.

Step 3: Customer payment process

When the customer clicks the payment link, they are directed to a secure payment page tailored for their device. Here, users can:

●     Choose from multiple payment options, including credit and debit cards, e-wallets like PayPal and Apple Pay, or even bank transfers.

●     Enter their payment details in a secure environment that employs advanced encryption techniques such as SSL and tokenisation for safety.

After the payment is processed, both businesses and customers get real-time notifications. This ensures immediate confirmation and smooth order fulfilment. Certain platforms provide the ability to store customer payment information for recurring transactions, which significantly improves the ease of making future payments.

Simplifying each step, Pay by Link technology facilitates all users of the payment process, which remarkably improves their interaction. In this regard, the process is operated with minimal obstacles.

What are the effects of payment links on businesses and the client experience?

Business benefits

The introduction of Pay by Link has redefined business processes, leading to great improvement in the business performance indicators. According to Deloitte’s Digital Payments Report 2024, there are about 500 firms that implement Pay by Link and get a remarkable outcome across different functions and operations of the business.

Auto-sourcing the task with quicker completion rates

The introduction of automated payment reconciliation features that payment links provide has drastically improved accounting processes. Financial teams revealed a 62 percent decrease in the time spent on payment reconciliation, aiming more to strategic financial management and analysis instead.

These have helped businesses achieve remarkable results in the following areas:

●     Manual data entry requirements decreased by 89%.

●     Transaction processing time was reduced from 3.2 minutes to 47 seconds.

●     Reconciliation accuracy increased from 92% to 99.7%.

●     Payment tracking errors decreased by 94%.

●     Customer support queries regarding payments decreased by 67%.

●     Cost optimisation measures paved the way for sustainable long-term benefits.

As a result, Pay by Link operations have led to an average increase of 27% in the net profit margins of businesses. Small and medium-sized enterprises have thrived, realising ROI in just 4.3 months after implementation.

Key operational gains:

●     Transaction costs reduced by 23% compared to traditional payment methods

●     Chargeback rates decreased from 0.9% to 0.3%

●     Payment processing fees lowered by 31%

●     Labour costs associated with payment handling were reduced by 44%

●     Revenue leakage from payment errors decreased by 91%

Strategic resource allocation and optimisation

The Pay by Link features have had cascading effects across organisations. Finance teams are now spending 47% more time focusing on strategic initiatives, and customer service teams have shifted 34% of their resources towards proactive customer engagement instead of just resolving payment issues.

Key impact on resource utilisation:

●     73% reduction in time spent on payment-related customer service

●     81% decrease in payment dispute resolution time

●     56% improvement in cash flow forecasting accuracy

●     38% reduction in working capital requirements

●     67% faster month-end closing processes

Customer-centric advantages

Pay by Link has completely changed the way customers pay; in fact, 87% of consumers are happier now than they were when they used more conventional methods. Forrester found that companies with user-friendly payment systems had 43% higher customer loyalty ratings.

Improved payment accessibility and convenience

These days, customers want easy ways to pay, and Pay by Link gives them just that. The market study shows that the following changes have a huge effect on user engagement:

●     91% reduction in payment abandonment due to complex checkout processes

●     The average payment completion time reduced from 4.2 minutes to 58 seconds

●     78% increase in first-time payment success rates

●     Mobile payment completion rates improved by 67%

●     Customer satisfaction scores increased from 72% to 94%

Flexible payment options propelling usage

Based on research showing significant increases in payment completion, the variety of payment alternatives has become a crucial factor in consumer satisfaction. The following research data emphasises the point:

●     76% increase in successful transactions through multiple payment options

●     Digital wallet usage increased by 54% due to Pay by Link

●     Bank transfer adoption grew by 47%

●     International payment acceptance improved by 82%

●     Alternative payment method usage rose by 63%, powered by payment links

Augmenting customer relationships

Beyond transactional benefits, Pay by Link has profoundly impacted customer engagement. Let’s look at some statistical validation:

●     93% of clients perceive better trust in businesses that provide secure payment links.

●     Customer support enquiries dropped by 71% after implementing payment links

●     Payment-related complaints decreased by 84%.

●     Repeat purchase rates rose by 38%.

●     Customer lifetime value increased by 42% due to Pay by Link

Industrial applications of payment links

Pay by Link solutions are flexible, and hence many industries have adopted them in different ways. Each sector uses the technology to deal with specific operational challenges or improve customer experience.

Retail and e-commerce

Payment links have emerged as a new favourite for small businesses and independent sellers, away from the traditional e-commerce platforms. As Statista reported in 2024 for its Digital Commerce Report, 68% of small retailers who don't have an online dedicated store use payment links for selling products through social media. Conversion rates for the UK Digital Economy Council are 34% more compared to the standard checkout for the users who use it. Payment links offer significant advantages for businesses moving from offline to online sales. McKinsey highlights that merchants utilising these links experience 41% higher customer satisfaction scores.

Food and beverage sector

The restaurant sector has experienced notable digital changes, especially in payment processing. According to a recent survey by UK Hospitality, now 47% of food businesses also offer digital payment options; 62% of these businesses prefer payment links. Square's Restaurant Industry Report 2024 tells that the restaurants using payment links have managed to reduce the time taken in processing payments to 28% and even increased advance orders by 39%. This has made it easier for small and medium-sized operations to level up with the big chains.

Charities and non-profits

Acceptance of digital payment solutions, like Pay by Link, has witnessed a soul-reviving transformation in the nonprofit sector. The rates of completing donations among organisations such as CAFOD and the British Red Cross have increased astonishingly by 56% through the introduction of payment links, the Charity Digital Skills Report 2024 states. The National Council for Voluntary Organisations estimates that charities that use payment links have seen an impressive reduction of 31% in transaction costs compared to the more traditional modes of donation, with a very impressive 73% boost in tracking and transparency about donations.

Professional services

Payment links have now transformed how independent professionals take payment. According to LinkedIn's Freelance Economy Report 2024, freelancers using payment links save 62% of their time on paying administration and enjoy 45% faster payment settlements than freelancers depending on traditional invoice practices. The Professional Services Council points out that consultants and tutors who use payment links have seen their cash flow management increase by 37%, while client satisfaction has gone up by 42% as a result of the payment process being streamlined.

How do you select the best payment link service provider?

You must thoroughly evaluate your business's specific needs and future objectives while choosing the appropriate Pay by Link provider. Here is a guide to making a well-informed decision:

Comprehend your requirements

Begin by determining your objectives. If your emphasis is on fundamental payment collection, a provider offering straightforward, user-friendly Pay by Link solutions may be adequate. Should you need advanced features such as recurring billing, detailed analytics, or multi-currency support, it is advisable to select a payment link provider that offers comprehensive functionality designed for more intricate requirements.

Evaluate expenses

Payment link providers are very diverse in terms of pricing. Compare transaction fees, setup fees, and any hidden costs that might affect your bottom line. For instance, Pay by Link services like SumUp are known for offering very competitive pricing, making them ideal for small businesses with limited budgets. Align the cost with the value-added service to ensure optimal return on investment.

Assess security features

The payment link provider must adhere to stringent compliance standards, such as PCI DSS for secure payment and GDPR for the privacy of data. Pay by Link providers with enhanced security measures like tokenisation and fraud monitoring protect the data of the customers and also ensure that they are trusted.

Consider integration options

An effective payment link must integrate smoothly with your current systems, such as CRM tools, e-commerce platforms, and accounting software. This compatibility makes operations more efficient, cuts down on manual work, and makes sure that all channels have the same process.

Leading Pay by Link service providers:

The payment link service providers in the UK have been growing significantly. Each of them provides customised offerings that cater to different business needs.

Wonderful

Wonderful is a UK-based Pay by Link company that offers a simple user interface and a safe platform for online transactions. Wonderful integrates nicely with current systems and suits all types of businesses, from start-ups to established corporations. It's a cheap way to pay for 2000 transactions a month, priced at 19.99 for small businesses in the UK.

Stripe

Stripe offers a versatile payment link service that lets businesses create and customise links from their dashboard. The platform supports more than 135 currencies and has an international reach, which is a primary reason companies select Stripe as their preferred method for transacting with foreign clients. Real-time reporting and fraud detection make the entire process reliable.

SumUp

SumUp is an easy-to-use payment link for small and medium-sized enterprises to use since its setup and interface are quite simple. Businesses can use it to send Pay by Link URLs via email or even messaging apps. SumUp offers payment link services suitable for businesses that value simplicity and would process payments, including digital wallets.

Square

Square excels at payment links as part of its digital payment solutions. It integrates online and in-person sales for a unified customer experience. Square's analytics tools enable firms to track payment performance and optimise financial operations, giving it an edge.

Payment trends for 2025 and beyond

The Pay by Link world is always changing as new tools come out and people's tastes shift. Gartner says that by 2025, 42% of all digital transactions will be handled by payment systems driven by AI. At the same time, machine learning algorithms will cut fraud rates by up to 67%. These intelligent solutions are changing fraud protection and facilitating hyper-personalised payment experiences based on customer behavioural patterns.

Blockchain revolution

The McKinsey report says that the application of blockchain technology-led smart contracts reduces transaction costs by 38% and has transformed cross-border payments. Large financial institutions are already investing heavily in distributed ledger technology, expecting that blockchain will conduct 22% of international payments by 2026.

Embedded finance

Embedded finance is opening up new avenues with Pay by Link solutions integrating smoothly into social commerce platforms and messaging apps. Accenture reports that 61% of consumers want to complete purchases on their chosen social platforms, with the market value for embedded payments predicted to be $138 billion by 2026.

Biomteric identification

Fingerprint and facial recognition integration might cut payment fraud by 84%. IoT Analytics predicts that linked devices will make 27 billion payments per year by 2025.

Open banking

Players like Wonderful are leveraging open banking-enabled real-time payments, which will make up 72% of digital transactions by 2025. This progression, together with quantum computing advances in encryption, is laying the groundwork for ultra-secure, instantaneous payment processing.

Conclusion

Pay by Link is a huge step forward in the way payments are processed. It gives companies a powerful tool for growth and better operational efficiency. As digital payments change, companies that use new payment methods set themselves up for long-term success in a market that is always evolving.

As more businesses go digital, adding Pay by Link services from companies like Stripe, Square, Wonderful, or Razorpay can help them run more efficiently and make more money. As new technologies like AI and open banks keep coming out, there are a lot of different ways that payment links can be used.

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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