Consumers seem to be on their phones all the time. Socializing, communicating, and managing finances all take place through apps today. So, it’s no surprise that payment links for businesses are on the rise. A Twilio study found that 67% of consumers want to receive payment links for fast payments via text message. Around 58% of businesses send mobile payment links through WhatsApp, and 47% of businesses using Facebook also use it to send online payment links through Facebook Messenger.

Payment links create a streamlined user experience, especially when customers can complete the transaction with a mobile wallet. Even if they have to whip out a card to input numbers into a checkout page, the payment experience is far easier than calling in a payment or typing a website URL into a browser.

With mobile devices linked to bank accounts via ApplePay, AndroidPay, and other mobile wallet tech, asking customers to pay is as simple as sending them a text message. 

A payment link is a link that a merchant can email, text, airdrop, or show as a QR code for a customer to make a payment online via a payment page. On this payment page, they can input payment details like a credit card number, expiration date, CVV, and zip code.

Your payment processor can manage these digital payment links and the payment page—the same company that makes the hardware and software for taking plastic credit cards in a store. On the back end, the processor will facilitate a card transaction with the card network (Visa, Mastercard, Amex, Discover), your bank, and the customer’s bank.

In the bigger picture, the participants in this ecosystem are the same as they are for in-person payments. There are some differences on the back end. For starters, secure payment links must leverage more robust anti-fraud technology because these types of payments are card-not-present (CNP) transactions.

Visual diagram or flowchart showing the step-by-step process of creating and using a payment link.

There are several different types of payment links. The type you choose to use will depend on the nature of your business and what would bring the most value and convenience to your customers. You may use one-time payment links, recurring payment links, or customizable payment links.

These links are good for single transactions and specific purchases. Examples include car repair, a healthcare co-pay, or a meal in a restaurant. 

These links are perfect for subscriptions. You can automate them to appear on the same day and time every week or month. With subscriptions, you generally want the payment to be automated. But you can still send a payment link to keep a customer “in the loop” or let them change the amount and/or date of their payment.

These links let a business change amounts and add descriptions to an invoice. They are great for B2B payments for goods and services. Consumers usually order things off a “menu,” so to speak. 

However, businesses may need more fine-tuning and flexibility with their purchases, including payment arrangements. For example, you can customize the payment gateway page to offer Net-30 or 2/10 payment options.

Embedded payment links may not be sent directly to a customer but can be embedded into a website, email, or social media profile. Embedded linking is becoming more robust. For example, Instagram has partnered with Shopify to let brands tag photos with clickable links that take customers right to a product page.

Payment links have many benefits for small business owners. Below, we will go over each one and explain how these benefits should be considered if you’re weighing whether or not to implement payment links in your business. 

Customer Convenience

First off, it is convenient for customers. They don’t have to call, they don’t have to come in, they don’t have to take out their wallet (necessarily if they have mobile wallets), and they don’t even have to type in a website. It’s just click, click, and scan your face (for Apple and Android users with the latest mobile tech). Even for customers who still have to take an actual plastic credit card out, mobile payments are super convenient.

Fast Payment Collection

Secondly, payment links facilitate fast payment collection. One industry where this becomes apparent is healthcare, which is notorious for its sizable amounts of bad debt (e.g., unpaid bills). 

Surveys have shown that patients are willing to pay their bills…they might just forget. Or they might put it off in favor of paying other bills. With payment links, you can capture payments much faster than snail-mail paper invoices.

Versatility at Checkout

Thirdly, links are versatile in accepting multiple payment methods. More versatile, in fact, than most POS terminals. Payment gateways can often take credit cards, debit cards, ACH, mobile wallets, eCheck, and even crypto payments. You might think that’s unnecessary, but studies have shown that consumers prefer to have their go-to payment method accepted, and that varies from person to person.

Improved Customer Experience

Fourthly, payment links create improved customer experiences. One example where this benefit is readily apparent is in restaurants using QR codes. Customers can now scan a code to get their menu and pay their tab. 

No more handing over a credit card for the wait staff to take down numbers to buy luxury watches (it happens). Even without the fraud, waiting around for 5 minutes after your meal is over can be frustrating. QR codes make it easy to dine and dash (while actually paying as well).

Easy to Set Up

Lastly, payment links require minimal setup. Your payment processor provides the technology for accepting payments over the web and a user dashboard for sending and managing the links. Companies like PayPal have pioneered these innovations, but now most payment processors can facilitate the same thing with better rates.

Payment link software will look different for each payment processor, but the general principles are the same. You should have a dashboard you can access from a desktop, mobile, or tablet. This dashboard will allow you to access data from your CRM, such as phone numbers and emails.

You should be able to customize the items on the payment page, much like an invoice. You’ll probably have goods or services that are commonly rendered, so this information can pre-populate from a dropdown menu.

There are some simple best payment link practices. Links should not be sent at odd hours of the night. The text or email should clearly reference who is sending the link and address the customer by name. 

Hi Tom, please click on this link to pay for your latest visit to Boris’ Russian Spa. 

Without these details, customers may ignore a text and/or view it as fraudulent.

How can you ensure security when sending a payment link? Your best bet is to have customers request the link themselves. They can text a particular number and receive a link in return. 

This ensures you are sending the payment link to the right person and that a random person is not sending in payment as “bait” to open up a discussion about goods or services you rendered to your true customer.

Let’s explore payment link security a little more. Another measure you can take is to require customers to create an account and log in. This obviously adds a step to the payment process, so you’ll have to balance it out with convenience considerations.

If customers create an account, you can also have them input payment information one time for future payments. Whether or not those payments are automated means storing customer payment information, which creates a new layer of security demands.

PCI compliance for payment links adheres to Payment Card Industry Data Security Standards (PCI DSS) protocols. This means generating the payment links from a secure platform that adheres to these protocols, which were created by Mastercard and Visa to protect sensitive consumer financial information. 

There are 12 main categories of PCI DSS compliance. Some of them can be implemented by any scrupulous business. For instance, each employee who can log into the payment system must have unique credentials. Your business must use a secure, closed network with passwords that are different from the factory defaults on routers and hardware.

However, some aspects of PCI DSS compliance are cost-prohibitive for the average business to follow, such as proactive cybersecurity, firewalls, auditing, and routine testing of network security. As an example of “proactive cybersecurity,” proxy piercing must be used to see if the location of a device making a payment is really where it says it is (and not in a country frequently flagged for fraud).

The good news is that a small business can pass all these expenses on to its payment processor. The processor, servicing all the clients it does, is better poised financially to pay for securely storing and encrypting large amounts of customer card data.

Most cellphone users respond to text messages right away. However, that doesn’t mean they’ll click on a link right away. How can you optimize payment links so that consumers actually complete their payments immediately?

One way is to leverage some good old sales strategies. Using someone’s name in a conversation is an old sales strategy that builds familiarity. Earlier, we mentioned that putting a customer’s name in a text or email helps them know the message is legitimate. We are also suggesting that it builds rapport and draws them closer to making the payment. Of course, to do this, you’d need to have your payment integrated with CRM software.

Accompanying this personalization is a CTA or call to action. “Make your payment today” is a simple and direct message. You can even spice it up by offering discounts for early payments. What about adding a company logo? If you can add this to a text or email, branding helps build trust and recognition.

It’s also good to integrate payment links with some analytic software. This will allow you to see who has made their payments and who hasn’t. Automated reminders can be sent to help customers catch up.

Your payment processor might be able to give you the ability to charge customers in installments. Applications like Klarna, Affirm, and Afterpay allow customers to split up purchases into smaller amounts. Your payment processor might be able to do the same with the payment links you send customers. If so, you can mention that as an additional enticement in the text. 

Example of an optimized payment link showing branding, clear CTA, and mobile-friendly design.

Let’s look at a few examples of businesses using payment links successfully.

First off, a local boutique spa. Going to the spa is supposed to be luxurious. Waiting at a cash register to make a payment before or after your treatment is decidedly not glam, fam. What about directing customers to scan a QR code on the wall, seamlessly blended into your logo? Customers can then make a few clicks with their mobile wallet and get on with their day.

Now, on to a cleaning service. Cleaning services typically collect payment from homeowners in cash. Cash is easy to lose and sometimes attracts crime. But many cleaners do not have an operation large enough to merit expensive payment hardware…until now. With cloud-based software, cleaners can send their customers a link to make a payment.

What about sole proprietors? Typically, these individuals do not have the cash flow to merit traditional payment processor services. They often rely on marketplaces like Upwork or Fiverr to facilitate payments. However, with payment links, they can skip the burdensome 10% fees of these platforms and just directly text their clients a payment link.

The future of payment links will certainly be interesting. We have already mentioned QR codes. However, once the payment page is accessed (via camera or clickable link), new ways of making the payment emerge. 

One is biometric payments. Both Visa and Mastercard have rolled out eye scan payments, and Amazon has implemented hand scans in Whole Foods and Amazon stores.

Another growing area is crypto. With thousands of digital currencies out there, payment gateways need to be robust at integrating with different networks. Customers, even those beyond your average Bitcoin Bro, increasingly appreciate clicking on a link and paying with their favorite coin.

Conclusion  

Automating payment links makes collecting payments much easier. Optimizing payment conversions with links involves using common sense and sales strategies, such as name recognition, branding, and a CTA.

Processing payments this way allows customers to use their preferred payment method, whether it’s card, crypto, or even (in the future) their eyeballs. Payments secured through robust defended payment gateways are not your battle to fight but one that can be outsourced to a competent payment processor.

To learn more about payment links and other effective payment solutions and how you can implement them for your business’s checkout process, give ECS a call or fill out our contact form.

Do payment links cost money to create?

There should be no direct cost to create a payment link. However, the payment itself will incur your standard credit card fee, as agreed to with your payment processor. Your payment processor may also charge a higher fee for payments made with a link than those made in person, as they are considered card-not-present online transactions.

What are the benefits of using payment links for checkout?

There are so many benefits to using payment links. Here are the most common ones:
1) Customer Convenience: Payment links eliminate the need for customers to call, visit a location, or navigate a whole website. With just a few clicks, they can pay instantly through their preferred method—credit card, mobile wallet, or ACH.
2) Faster Payments: By sending links to pay via text or email, businesses reduce payment delays, especially in the healthcare industry, where faster collections minimize unpaid invoices.
3) Versatility: Payment links provide a more versatile checkout process for customers so they can pay in their go-to payment method including credit/debit cards, mobile wallets, and even crypto.
4) Improved Customer Experience: Streamlined transactions via payment links make checkouts quick and secure, optimizing the customer experience and incentivizing return visits.
5)Minimal Setup: Payment links are easy to set up and integrate into your current payment system using tools provided by most payment processors.

What types of businesses benefit from using payment links?

Many industries can benefit from using payment links at checkout. However, the most common businesses include:
– Service Providers 
– Freelancers and Sole Proprietors 
– Healthcare Providers 
– Retail Businesses 
– E-commerce

Are payment links secure?

Payment links are designed to route a customer to the merchant’s online payment terminal. If the merchant is in proper standing with the card brand’s PCI compliance and works with a legitimate payment processor, then the online payment made through a link will have robust security features.

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