Accepting payments always comes with processes and fees, particularly when it comes to online or digital payments.
From payment gateways to API plugins, there’s a certain amount of IT work required to facilitate the payment process.
Now, if you’re a small business managing all of that can be time-consuming and difficult.
This is where payment links come in.
Payment links are quick to create, easy to use, and don’t require a lot of technical know-how to manage. In sum, it’s the ideal solution for those who are looking to add value to the payment experience.
But what are payment links, and how can you make them work for your business?
TL;DR
- A payment link enables you to request and accept online payments without having to build a website or checkout page.
- Once a customer makes a purchase, just send a payment link, and let the shopper pay through that link.
- Payment links are ideal if you don’t process a lot of online sales.
What are Payment Links?
A payment link is a solution that enables businesses to request and accept online payments without having to build a website or checkout page. Payment links can take the form of a URL, QR code, or a Payment Button that’s generated and shared by the seller.
Payment links can be shared across a variety of different channels, including but not limited to email, SMS, mobile apps, or social media messaging platforms such as Facebook and Whatsapp.
This gives customers maximum flexibility over how they want to pay—whether that be ACH (bank account transfers), digital wallets, to credit and debit cards.
Plus, customizable pay links can be easily tweaked to accommodate different configurations and preferences, including multiple line items, custom fields, etc..
How Payment Links Work
Here’s a quick rundown of how payment links work.
1. Setting up your payment page
Businesses can create payment links by subscribing to a payment processing company (like Stax) that offers this functionality. Your payment provider will give you a secure payment page where customers will be directed to enter their payment information when they follow the link, payment button,or QR code.
Depending on your provider, you may have branding capabilities available to customize your page, such as customer memos or branding.
2. The customer agrees to the transaction
Once you’ve set up a payment page, you’re ready to initiate transactions. Depending on your needs, this could mean selling products, rendering services, or collecting donations.
The payment link would come into play once it’s time to collect the payment. Once the customer has agreed to the transaction, you can go ahead and share the URL.
3. Sending the payment link
Usually, your payment provider will automate the payment workflow for sending payment links via email or SMS. You’ll also be able to copy/paste links manually so you can drop them into other platforms.
One of the biggest benefits of payment links is that there are numerous ways to send them to customers, depending on your business type. For example, if you sell products via Instagram, you can simply paste payment links into Direct Messages or on the profile page.
4. Making the payment
Once your customer receives the payment link, they simply click the link or scan the QR code to be taken directly to your online payment page to enter their payment details. Depending on how your page has been set up, this could include a field to enter credit card details, ACH information, Apple Pay or Google Pay, etc.
It’s always a good idea to select a payment provider that offers digital wallets. This saves your customers valuable time at the point of sale by not needing to enter their card details manually.
Use Cases of Payment Links in Action
Payment links are an excellent payment option in the following scenarios:
You don’t process a lot of online sales. If you’re a startup that doesn’t have a website that supports sales or a small business that generally takes payments in person, it might not be cost-effective to invest in a full-fledged online payment solution. Payment links offer an easy and affordable way to accept a variety of payment options.
You communicate with your customers using lots of different channels. If you utilize a lot of selling channels as a part of your business, payment links are a great option to avoid having to redirect customers to an external website they aren’t familiar with. This means you can tailor your end-to-end sales journey to specific platforms, such as social media or email.
Your volumes see large peaks and troughs. Seasonal product/service providers or non-profits that do a small number of fundraising drives each year typically see large fluctuations in the number of transactions or payouts they process. As a result, it might not be worth adding a permanent payment gateway to your website.
You’re a service provider who charges on a per-project basis. Professional service companies who send out a lot of electronic invoices may find payment links more intuitive than other payment methods, as custom payment links can be generated for each client depending on their precise needs.
Companies That Provide Payment Links
Interested in implementing payment links? Here are the top companies that offer this capability.
Stax
Stax offers a full suite of payment processing solutions, including both online and in-person payments. Stax includes a fully-customizable, PCI-compliant payment link sharing across email, social media, and SMS, including embeddable QR codes and Pay Now buttons. Recurring billing options also enable you to send out automatic payment reminders to customers ahead of renewals, saving valuable time chasing up late payments.
Cost: Plans start at $99 per month.
Stripe
Stripe makes it easy for brands to set up payment links by including this tool within their pay-as-you-go pricing plan.
Brands can easily set up payment links for different products or plans and reuse these links multiple times with customers. Stripe supports over 20 different payment methods, including Visa, Mastercard, Apple Pay, and Buy Now, Pay Later plans.
Cost: 2.9% + $0.30 per card charge (recurring billing is available at an additional cost)
PayPal
Companies with a PayPal business account can access PayPal.Me system, which allows you to generate and use payment links across multiple platforms, including social media, email, text messages, and more. Selling profiles are also searchable within the PayPal app.
Cost: 2.59% + $0.40 cents per cardcharge, 3.49% + $0.49 cents for PayPal, Venmo and cryptocurrency.
Square
Square’s Online Checkout feature offers a flexible payment link system for all kinds of businesses, from startups to charities and eCommerce merchants. Instead of just URL links, vendors can also choose from QR codes and ‘Buy Now’ CTAs to embed within emails. In addition to one-off payments, payment links can also be configured for subscriptions, donations, and tips.
Cost: 2.9% + $0.30 per card charge, no additional monthly fees for recurring billing.
Final Words
When it’s become so easy to set up a business and start marketing goods and services online, it only makes sense that accepting online payments should be as well. No matter whether you’re an eCommerce seller, a non-profit, a service provider, or something in between, payment links offer a low-maintenance solution that makes real-time payments easy for both you and your customers.
FAQs about Payment Links
Q: What is a payment link?
A payment link is a solution that enables businesses to request and accept online payments without having to build a website or checkout page. Payment links can take the form of a URL, QR code, or a Payment Button that’s generated and shared by the seller.
Q: How does a payment link work?
Payment links offer a simplified process. First, a business sets up a payment page with their chosen payment processing company. Once a transaction is agreed upon, the business shares the payment link via email, SMS, or other platforms. The customer then clicks the link or scans the QR code, leading them directly to the online payment page where they enter their payment details.
Q: What are the use cases of payment links?
Payment links are ideal for businesses that don’t process many online sales or those that communicate with their customers over multiple channels. They’re also an excellent solution for service providers who charge on a per-project basis and businesses with highly fluctuating payment volumes.
Q: Which companies provide payment links?
Top companies offering payment links include Stax, Stripe, PayPal, and Square. These companies provide comprehensive payment processing solutions, allowing businesses to customize payment links and share them via various channels.
Q: Can I customize my payment links?
Yes. You usually have branding capabilities available to customize your payment page, such as customer memos or branding. Depending on your provider, payment links can be quickly modified to accommodate different configurations and preferences, including multiple line items and custom fields.
Q: What are the benefits of using payment links?
Payment links offer quick set-up ease of use, and do not require a lot of technical know-how to manage. They are easily shareable across a variety of channels and provide customers with a maximum of payment flexibility.
Q: How secure are payment links?
Payment links are very secure as they’re offered by PCI-compliant payment processing companies. This ensures that customer payment information is protected, making them a reliable option for accepting online payments.
Q: Do payment links support multiple payment methods?
Yes. Payment links can accommodate a wide range of payment methods, from ACH (bank account transfers), and digital wallets, to credit and debit cards, providing customers with a variety of payment options.
Q: Can I reuse a payment link?
Yes, certain platforms allow you to reuse payment links for different products or plans multiple times with customers.
Q: Are payment links useful for non-profit organizations?
Yes, for non-profits that conduct a small number of fundraising drives each year, payment links can be a more cost-effective and convenient solution compared to adding a permanent payment gateway to your website.
