Introduction

The world may be entering a period of de-globalization, but cross-border payments are on the rise. International transfers are expected to increase in the coming times. In part, this is being driven by previously unbanked populations that are now getting access to modern financial tools for the first time. But also, as established trade corridors get disrupted and supply chains become more fragmented, organizations are having to send payments to new countries—sometimes multiple new countries—as they replace established partners.

But whereas instant payments are fast becoming the norm domestically, the picture is different when businesses try to move money across borders. This is perhaps understandable when you consider that there are 195 countries all with their own payments systems, regulations, and levels of technological maturity. But it’s also an opportunity. International payments are the engine of the global economy, and reducing friction could facilitate trade and help drive prosperity.

New technologies are helping seize that opportunity, whether it’s the latest generation of real-time payment rails or more emergent ideas such as blockchain. To understand their significance, it’s important to understand how the system works now.

What Are the 4 Most Preferred Payment Methods in North America?

The United States is home to a diverse population of consumers, which is reflected in the different payment methods they use. Let’s take a closer look at the 4 most popular methods of payment in North America.

1. Cash

Cash is the physical currency – including bills and coins – that can be used to buy goods and services. In the US, that’s US dollars (USD), of course.

Despite the increasing popularity of contactless and electronic payment methods like credit and debit cards and e wallets, cash usage still remains widespread throughout the US. 

2. Debit and Credit Cards

Debit and credit cards are used to pay for goods or services online and in person. When a cardholder makes a purchase with a debit card, funds are directly deducted from the account the card is linked to. If there are insufficient funds in the account, the card will be declined. With a credit card, the funds are drawn from a line of credit provided by the cardholder’s bank. These funds are repaid to the bank at a later stage. If the debt is not repaid in time, the bank will charge interest. 

3. Electronic Payments 

There are three main types of electronic payment methods used in the US:

1. E-wallets 

An ewallet, also referred to as a digital or mobile wallet, is a software application that stores payment information like credit card or banking details to enable the purchase of goods or services. Today, e-wallets are rapidly growing in popularity because they offer a quick, convenient, and contactless way of making payments online and in store. For example, Transfi’s e-wallet helps make smooth and quick digital payments with options of currencies, payment methods and security clubbed with complete transparency in the payment chain. 

2. ACH Transfers

An Automated Clearing House (ACH) transfer is an electronic money transfer between banks. Funds are withdrawn from one account and deposited in another. These transfers use the ACH network and tend to be cheaper than bank transfers. With ACH debit transfers, the funds are withdrawn (pulled) from an account, as is the case with recurring billing or subscription payments. ACH credit transactions allow funds to be sent (pushed) to other accounts. This type of transfer can be a transaction made from a business to a customer (e.g. refunds) or employees (e.g. payroll). 

3. Echecks 

An e-check, or electronic check, is a faster and safer digital version of a paper check that uses the ACH network to transfer funds. E-checks can be easier to deal with than traditional checks. Once a business has requested authorization from a customer, payment is set up, submitted, and processed through the ACH network. Funds are withdrawn from the customer's account and deposited into the business’s bank account, usually within 3-5 days.

4. Bank Transfers

A bank transfer is a method of sending funds from one bank account to another. It can be made via an online banking app or in person at a bank branch. Bank transfers offer an alternative for customers who don’t own a credit card or have limited credit. They’re popular for large purchases because they’re safe, reliable, and secure.

What Method of Payment Is the Best in North America?

When choosing which payment methods to offer your customers, it’s important to take into account that the US is a large and highly diverse market. The most popular method may vary depending on your industry and the type of customers you serve. 

In general, Fintech digital payment solutions are now the most widely used payment method. This is mainly due to their flexibility and level of convenience for consumers. With such widespread usage, knowing how to deal with payments using these modern solutions in the online landscape is a must for any online business targeting a US market.

Transfi allows you to accept all of the most popular payment methods in the US, including multiple currencies for cross border payments, stablecoin and crypto payment options. 

The Benefits of Using Transfi to Accept Payments from North America

Transfi is a full payment service provider that lets you start accepting online payments across borders quickly and easily. 

You can accept a variety of preferred payment methods, including credit and debit cards, or currencies and digital assets you’d like to transact in, and more – the choice is up to you! 

Once you create your Transfi account, setup couldn’t be easier. You can choose between our no-code solutions, perfect if you’re just starting out, and our developer-friendly APIs that allow you to integrate the Transfi system into your own website.

You can track all your transactions in the simple and intuitive Dashboard, which also provides you with in-depth insights and reports about your customers’ purchasing habits.

Mastering payments in North America with Transfi

Selecting the right payment processor that consolidates billing, payments and subscription management tools is key to the success in North America. Transfi provides the following advantages over other solutions and gives valuable benefits to its users: 

1. Billing features: Transfi provides tools to support various billing methods, offers multiple payment options, provides robust fraud protection and includes robust subscription management.

2. Costs: Transfi comes with no transaction fees, minimal setup costs, and additional charges from various processors to fit the best fit for your budget.

3. Security and compliance: Transfi as a payment processor implements strong security and fraud prevention measures, complies with industry standards to protect customer data and collects taxes from customers correctly.

4. Customizability: The ability to customize functionalities and integrate with third-party software can help create a more seamless experience using Transfi.

5. Scalability: Transfi ensures to accommodate growing transaction volumes and expansion into new markets.

6. Localisation: for cross border payments, Transfi supports multiple languages and currencies.

7. Reliability: Transfi provides robust customer support and transparency in each and every step ensuring reliable means and legal compliances. 

Transfi is a cross-border infrastructure business focussed on enabling global companies to make payments in, out, and around the region of North America. Transfi is one of the first ones to bring Virtual Accounts, combined with a global foreign exchange network, to countries across the globe providing flexibility of payment methods, currencies and stablecoins. 

Conclusion

The cross-border payments segment is being disrupted by new entrants that promise to solve long-standing pain points around delays, high costs, and lack of transparency. These shifts offer opportunities across this trillion-dollar market, but incumbents and newcomers alike will need to develop differentiated strategies that consider the needs of different regions and customer segments. Transfi can be integrated into your cross border payment ecosystem, combining flexible payments, subscription management, advanced features, billing elements, transparency, and reliability in a solution that supercharges revenue growth. 

Frequently asked questions (FAQs)

1. What’s the best way to accept payments from the US?

Transfi allows businesses to accept a wide variety of payment methods, including all the most popular methods in the US. You can select from a wide range of debit and credit cards, digital wallets, and other payment methods you offer on your checkout page.

2. What is the most common method of payment in the US?

Accounting for more than half of all transactions in the US in recent years, the most common payment method in the US is credit and debit cards, with Visa and Mastercard being the most popular card brands. While credit and debit payments are widespread, fintech payments are gaining much higher traction in the current times. 

3. Why are digital wallets the best payment method?

Digital wallets are often viewed as the best payment method because they are convenient, widely accepted, and offer enhanced fraud protection. 

4. How many payment methods are there in the US?

The US has an advanced payments landscape that includes a variety of different payment methods, including cash, checks, card payments (credit and debit cards), bank transfers, direct debits, ACH, e-checks, mobile payments (e-wallets, payment links, QR codes), and cryptocurrency.

5. What are the Benefits of Using Transfi to Accept Payments from North America?

Transfi is a full payment service provider that lets you start accepting online payments across borders quickly and easily. You can accept a variety of preferred payment methods, including credit and debit cards, or currencies and digital assets you’d like to transact in, and more – the choice is up to you! 

Once you create your Transfi account, setup couldn’t be easier. You can choose between our no-code solutions, perfect if you’re just starting out, and our developer-friendly APIs that allow you to integrate the Transfi system into your own website.