Payment methods and means of payment
Payment methods are the various ways in which customers can pay — from credit cards and TWINT to purchase on invoice. Payment instrument is the specific tool (card, app, invoice).
Payment methods and means of payment
In payment transactions, a distinction is made between payment methods (the path of the payment) and payment instruments (the specific tool). Credit card payment is the method, the Visa card is the instrument. Mobile payment is the method, TWINT the instrument.
For Swiss online shops, the most relevant payment methods are: credit cards (Visa, Mastercard, AMEX), debit cards, mobile wallets (TWINT, Apple Pay, Google Pay), purchase on account (QR-invoice, Klarna, TWINT Pay later), bank transfer (PostFinance Pay, Pay by Bank) and cryptocurrencies (BTC, ETH).
The optimal selection of payment methods depends on the market, the target group and the industry. In Switzerland, the combination of Visa/Mastercard + TWINT + purchase on account is the most common configuration. For the German market, Klarna replaces TWINT as the preferred alternative.
Payment method examples
A Swiss online shop offers Visa, Mastercard, TWINT, PostFinance Pay and purchase on account — the five most important payment methods for the Swiss market.
An internationally active shop complements the Swiss methods with Klarna, iDEAL and SEPA Direct Debit for EU customers.
A food truck accepts contactless debit cards, credit cards and TWINT at the POS — the three most common payment methods in local business.
Payment methods FAQ
Which payment methods are available in e-commerce?
The most important categories are: credit cards, debit cards, mobile wallets (TWINT, Apple Pay), buy now pay later (BNPL), bank transfer, direct debit, cryptocurrencies and manual methods (prepayment).
Which payment methods does a Swiss online shop need?
For the Swiss market, Visa, Mastercard, TWINT, PostFinance Pay and purchase on account are the basic configuration. Apple Pay and Google Pay complement the offer logically.
What is the difference between a payment method and a payment instrument?
The payment method is the way (e.g. card payment, mobile payment). The payment instrument is the specific tool (e.g. Visa card, TWINT app).
What are alternative payment methods?
Alternative payment methods (APMs) are all payment methods other than credit cards — e.g. TWINT, PostFinance, Klarna, iDEAL, Bancontact, SEPA Direct Debit and cryptocurrencies. They vary greatly depending on the market.
