Understanding Electronic Payment Solutions for Your Business Needs

Introduction to Electronic Payment Solutions

Electronic payments are a broad category of payment types that include digital options. They range from credit and debit cards to bank transfers and virtual cards.

Digital and electronic payments are a popular alternative to traditional options such as checks, cash and money orders. In recent years, they have revolutionized the way businesses make and accept consumer payments. By adopting these payment methods, businesses can enhance their operational efficiency while providing a modern, convenient customer experience.

This article will define several common types of electronic payment services and help you determine the best fit for your business needs.

Benefits of Electronic & Digital Payments

Digital and electronic payments offer convenient, fast, and secure ways to make transactions, reducing the need for cash and checks. They offer advantages including:

Cost savings

Electronic payments are typically less costly than checks, which can total as much as $8 each when considering processing fees and labor costs.

Payment choice

Consumers may prefer different types of digital payments, from bank transfers to payment apps and mobile wallets. Using a digital or electronic payment system enables businesses to fulfill diverse needs.

Flexibility

Being equipped with digital capabilities such as credit card processing and online payments can help businesses meet customers where and how they prefer to pay. On the flip side, businesses that owe money to their customers or workforce can use a digital payment solution to stay flexible and fulfill diverse choices.

Security

Awareness of payment fraud is on the rise, and both businesses and consumers are looking to modern payment options for enhanced security. In Onbe + NRG's 2025 Payouts Landscape Report, over half of respondents said they were concerned about their physical payments being lost or stolen, and 59% said they find digital and electronic payments more secure.

One reason electronic payments are more secure is because payment information can be encrypted, protecting the user from data theft and potential monetary loss. Another advantage is that when funds are sent digitally, they are harder to steal—unlike physical payments, which are susceptible to mail theft.

Speed

Consumers can often make or receive digital and electronic payments nearly instantaneously, including from their preferred device. It's easier to pay bills on time, make purchases with a tap and access funds on an as-needed basis.

Merchant Services for Electronic Payments

Merchant services enable businesses to accept various forms of electronic payment through secure channels. Using merchant services such as payment processing and payment solutions can equip businesses with the capabilities, they need to serve their customers during in-person or online transactions.

By partnering with a reliable merchant services provider, businesses can reduce the costs of payment processing, provide a smooth customer experience and protect themselves against fraud and other risks. Businesses also unlock capabilities such as real-time payment tracking and visibility, helping them make informed decisions.

E-Payment Solutions

E-payment solutions allow businesses and consumers to make digital and electronic payments, augmenting or replacing traditional methods like cash or checks.

Because e-payments are a broad category, these solutions encompass many payment types and business needs. For instance, a business may use various e-payment solutions to issue refunds to their customers, deliver rebates on a virtual card, accept payments made through digital wallets and a lot more. Common e-payment methods include:

Credit and Debit Cards

Credit and debit cards are two of the most popular ways to pay. E-payment systems may enable businesses to accept consumers' card payments or, in the case of a disbursement solution, push payments to a recipient's debit card.

Bank Transfers

Bank transfers can be used to make direct deposits, one-time payments, or recurring international and domestic transfers. While transfers between bank accounts can take several days, options such as Same Day ACH transfers offer greater speed and convenience.

Digital Wallets

Digital wallets are growing in popularity, with the majority of consumers using this method at least weekly, according to the 2025 Payouts Landscape Report. E-payment solutions may allow businesses to accept payments via digital wallets or enable seamless mobile wallet provisioning.

Prepaid Cards

Virtual and physical prepaid cards offer a secure, flexible way to pay customers and workers. Recipients can spend their cards almost anywhere, since solutions for credit card acceptance can be used to process prepaid cards, too.

Cryptocurrencies

Merchants can typically accept cryptocurrency payments through two kinds of e-payment solutions: crypto wallets and gateways. Cryptocurrency regulations vary by state and change frequently, so be sure to seek legal counsel when preparing to offer crypto as a payment option.  

Some e-payment solutions include:

Payment Gateways and Payout Gateways

Payment gateways enable businesses to accept payments from customers. The gateway serves as an intermediary between a customer, a merchant, and the customer's bank. Payout gateways are used to make disbursements to their customers, employees and other recipients.

Point-of-Sale (POS) Terminals

POS terminals are hardware devices used to process payments, including electronic payment methods. They may offer a variety of other functions, including customer relationship management (CRM) tools, inventory management, online ordering and more.

Buy Now, Pay Later (BNPL)

BNPL solutions enable businesses to offer short-term financing to their customers at the point of sale. The purchase price is divided into several installment payments, giving consumers the flexibility to pay for items over time.

Online Payment Solutions

Online payment solutions encompass various platforms used for online transactions. For example, payment gateways are online payment solutions used to securely transmit payment information and verify e-commerce transactions. Businesses may use these solutions to accept a variety of payment methods, such as credit and debit cards, digital wallets, and payment apps like PayPal.

Online payment solutions typically offer security measures to guard against fraud and protect customers' sensitive data. They may also offer flexible payment options, allowing customers to choose their preferred method of transacting.

Payment Processing Solutions

Payment processing solutions enable businesses to accept and process digital and electronic payments online or in person. They act as an intermediary between the business, their customers and financial institutions.

Payment processing involves the transfer of funds from the customer’s card or bank account to the business’s account. So, businesses should choose payment processing services that are secure, reliable and offer a seamless experience. By partnering with a reputable payment processing company, businesses can ensure their payments are processed efficiently and with the appropriate fraud protections in place.

Secure Credit Card Solutions

82% of U.S. consumers have a credit card, making cards one of the most popular payment methods. However, the rise of fraud in recent years means businesses must take extra steps to ensure their credit card payment systems are secure.

Credit card security involves protecting sensitive information, such as card numbers and expiration dates, as well as taking a proactive approach to fraud monitoring. Partnering with a trusted provider is the first step to building trust and increasing customer loyalty.

Disbursement and Payout Solutions

Disbursement solutions are used to make payments to recipients such as customers or workers. These payments could include refunds, incentives, compensation, legal or insurance settlements and more.

A disbursement or payouts platform makes it easy to issue payments securely and at scale. The platform provider may offer digital and electronic options, including bank transfers and virtual cards. Learn more about Onbe's disbursement solutions.

Payment Options

Businesses have many choices of electronic payment solutions and providers, but they also need to consider another factor: which payment methods to support. Consumers have diverse preferences, from credit and debit cards to digital wallets and mobile payments. Whether making or receiving payments, offering multiple payment options to fit diverse audiences can help increase customer satisfaction and loyalty.

Growing Your Business with Electronic Payments

Being ready to make or receive digital and electronic payments can help businesses grow their customer base and increase revenue. In the 2025 Payouts Landscape Report, over half of respondents said that following a positive payment experience, 50% would frequent the business more often and nearly half would refer a friend.

So, businesses should focus on providing a fast, seamless customer experience and ensure their payment system is easy to use. Partnering with a reputable payment processing company or disbursements provider can help businesses access new markets, deliver improved customer experiences and ultimately drive growth.

Next Steps

Digital and electronic payments have revolutionized the way businesses accept and make payments. If you're not yet on board, focus on choosing a payment solution that is secure, reliable, cost-effective and meets your customers’ needs and preferences.

By partnering with the right provider, businesses can modernize their outdated payment processes, provide consumers with popular choices and seamless experiences, reduce their operating costs and drive efficiency.

Connect with the payment experts at Onbe.