What Are Payment Links & How Do They Work?

Payment links offer a simple, fast and secure way for businesses to receive payments, especially via online and mobile channels.

A payment link is a URL or button that directs a customer to a secure online checkout page where they can make a payment. These links can be shared via email, text message, social media, or even embedded in websites and invoices.

Once clicked, the link takes the customer to a page where they can complete a transaction using their preferred payment method (credit/debit card, digital wallet, bank transfer, etc.).

But how exactly do they work, and how are they set up? Let's break it down.

How Do Payment Links Work?

Payment links simplify online transactions by acting as a direct pathway to a secure checkout page. Here's a breakdown of how they typically work:

Link Generation

A business uses a payment service provider's platform to create a unique payment link. During this process, merchants usually specify details like the amount to be paid, the currency, and sometimes the option for recurring payments or instalment plans.

Link Sharing

Once generated, the merchant shares this payment link with their customer. This can be done in several ways:

Email: Can be sent directly to a customer for an invoice or a specific purchase.

SMS/Text Messaging Apps: Payment links can be shared in direct messages with customers, ideal for quick transactions or mobile marketing.

Social Media: Links can be posted on platforms to promote products, services, or specific offers.

QR Code: The generated link can be converted into a scannable QR code for in-person payments or physical marketing material.

Embedded Buttons: On a website or blog, a 'buy now' button can contain the payment link.

Customer Payment

When the customer clicks or scans the payment link (or payment button), they are immediately redirected to a secure payment page, typically managed by a payment service provider.

On the secure payment page, the customer enters their payment details. This often includes credit or debit card information, digital wallet options including Apple Pay and Google Pay, or bank transfer details.

Confirmation & Notification

Then, the payment service provider securely processes the transaction with the relevant financial institutions.

Once the payment is successful, the merchant receives a notification (e.g. via email or on their payment dashboard). Customers usually receive a confirmation and receipt, also often via email or SMS.

Following approval, the funds are transferred to the merchant's business account.

Benefits of Payment Links

Payment links offer a versatile way to collect payments, avoiding lengthy checkout processes, unlike traditional payment methods, like physical card terminals.

Effortless Setup & Use

Payment links make online payments simple, requiring no additional infrastructure to securely handle payment details, a website, or code to use.

Secure and Compliant

Businesses can rest easy knowing their transactions are protected.

Payment providers ensure that payments are secure against fraud and fully comply with all legal requirements, keeping each business safe.

Superior Customer Experience

Customers can benefit from convenience. They can pay quickly and easily using their preferred method without the need for extra apps.

Some payment links even offer a single-click payment experience, further minimising effort.

Flexibility

Payment links offer incredible flexibility, enabling businesses to collect payments through various channels such as social media, messaging apps, and email.

The versatility of payment request links enhances the payment process for both merchants and customers.

Highly Customisable

Merchants can also tailor the payment experience to their brand, allowing them to create a recognisable and consistent look.

Boost Conversions & Revenue

By creating a seamless payment process, businesses can reduce basket abandonment rates and significantly improve conversion.

The flexibility of payment links helps merchants reach new audiences and better target existing ones, ultimately leading to increased revenue.

Businesses can also create purchasing points across multiple channels, expanding their reach and generating more sales.

Cost-Efficient Solutions

Merchants can save money by not needing expensive card readers and reducing card fees. Payment links offer a cheaper alternative method to receive payments.

Common Use Cases

Payment links offer a simple, efficient way to collect payments without needing a checkout page or an entire eCommerce store. Their appeal lies in their straightforward nature, making them a highly versatile method to process customer transactions.

Some common use cases are listed below:

No eCommerce Website

For businesses still developing an online store, or those without one at all, payment links provide a reliable and simple solution for processing payments online.

This is especially beneficial for small business owners who lack point-of-sale systems or other hardware.

SMS Marketing Campaigns

Direct payment links are an ideal tool for text message outreach. They offer a seamless way for recipients to complete transactions directly from their mobile devices.

Fundraising & Donations

While smooth checkout pages are important for selling goods, they are even more critical when collecting charitable donations.

Payment links make the process as effortless as possible, encouraging supporters to take action swiftly.

Customer Service Chats

Many businesses now offer personalised chat support or chatbots as part of their customer service.

Direct payment links can be used within conversations to guide customers towards specific items or transactions. This opens the door to cross-selling, to direct customers to in-stock items, and to facilitate purchases directly from the chat interface.

Multiple Customer Segments

Businesses that use targeted messaging for distinct audience segments can leverage direct payment links to create tailored payment pages, optimised for each customer.

In-Person Payments Without Hardware

The ability to text a payment link directly to customers makes it a versatile tool for facilitating in-person payments, even without dedicated hardware.

Website Interactions

Embedding payment links as 'buy buttons' on websites and online stores offers a direct path for customers to make a purchase.

Who Can Use Payment Links

Payment links are a versatile tool used by various individuals and businesses to collect payments securely and with ease.

Anyone who needs to receive money for goods, services, donations, or anything else can potentially use payment links. For example:

Online Sellers (without a website): Many small businesses or individual sellers on social media, messaging apps, or even those starting without a full eCommerce web page, can use payment links to get paid.

Service Providers: Freelancers, consultants, tutors, personal trainers, salons, and other service-based businesses can send links for one-off payments, deposits, or recurring services.

Non-Profits & Charities: To collect donations or sign-ups for events and memberships, the seamless payment process makes it easier for individuals to donate.

How to Set Up Payment Links

Setting up a payment link is a straightforward process that allows businesses to easily collect payments from customers without needing a full eCommerce website. This section outlines how to set one up.

Choose a Payment Platform

Choosing the right payment platform doesn't have to be complicated. A few key questions can guide the decision-making process:

Currency Support: What currencies does the payment provider support?

Ease of Link Generation: How easy is it to generate a payment link?

Page Customisation: How customisable is the payment page, including branding and logo?

Supported Payment Methods: What payment methods does the provider support?

Customer Support Quality: What is the customer support like?

DECTA's Payment Gateway offers a pay-by-link option, enabling merchants to generate payment links, create customised invoices, and keep track of sales. The gateway provides a convenient tool set to accept payments, with quick integration and a secure platform for online payments in over 50 currencies.

Create a New Payment Link

To create a payment link, merchants can simply log in to the chosen payment provider's dashboard.

Then, users can either preset a specific amount for the customer or leave it flexible to let visitors choose from different products or services.

Some providers also feature automated reminder capabilities for unpaid invoices or recurring services.

Customise the Link

Personalising the link can be a great way to enhance customer experience and improve trust. There are a few ways merchants can customise their payment links, for example:

Tailor Messages: Include a personalised note or memo when sending payment links. For example, "Thank you for the order!" can make customers feel more valued and help reduce cart abandonment.

Branded Pages: Incorporating a business name, logo, and colours on hosted payment pages can reinforce a merchant's brand identity and assure customers that the online transaction is safe and legitimate.

Customised Options: New links can be configured to reflect specific customer details, including the amount owed, itemised lists of purchases, or due dates. For service providers, this might include project descriptions and invoice numbers.

Generate & Copy the Link

Once all details are filled in, click 'Create Link' or 'Generate Link'.

The system will generate a unique URL (or a QR code). This link should be copied and shared with the customer through their preferred channel.

Track & Manage Payments

After sending a payment link, provider dashboards will typically show when the link has been used and when payments are completed.

Merchants may also wish to send a follow-up with an email or message as a gentle reminder if the payment hasn't been completed.

Regularly Test for Functionality

For payment links to be truly effective, they must operate seamlessly. Consistent testing is vital to maintain functionality and a smooth user experience. Businesses should consider the following:

Update as Needed: As each business evolves, undergoing changes like new branding, price adjustments, or shifts in product offerings, it's important to ensure that payment links are revised accordingly. Stale links can create confusion amongst customers and increase basket abandonment rates.

Verify Cross-Device Compatibility: Payment links should perform flawlessly across all devices and platforms. Confirm the responsiveness and user-friendliness across phones, desktops, and tablets.

Choosing the Right Payment Link Provider

By simplifying the payment process, DECTA's pay-by-link removes friction for customers by accepting multiple payment methods.

With DECTA, merchants can quickly create payment links and send them through multiple channels. This flexibility allows for immediate payment requests in various scenarios, whether for an online sale, a service invoice, or even payments initiated over the phone.

Explore how to make the payment experience you offer your customers more dynamic.