What Is a Link Payment? The Experts Answer

September 30, 2024

In today’s fast-paced digital world, collecting payments should be seamless, secure, and user-friendly. If you’ve ever found yourself wondering, what is a link payment? – we’re here to break it down. 

A payment link (or simply pay-by-link) is a simple, secure solution that allows businesses to accept payments by sending customers a unique link to complete their transaction. Whether shared via email, text, or social media, the link leads directly to a secure payment page, making the payment process quicker and more convenient for both businesses and customers.

Consider this: a small business owner runs a successful online store but struggles to offer a flexible payment method during customer service chats. Instead of completing online transactions or offering instant purchase online options, customers are left waiting for invoices. 

This bottleneck leads to frustrated buyers and abandoned sales. 

The solution? Direct payment links. With payment links, the business can instantly generate and send a payment request link during customer interactions, letting customers pay instantly through Apple Pay, Google Pay, or a credit or debit card.
If your business is missing out on quick sales due to a cumbersome payment process, it’s time to explore payment links. Contact Fibonatix today to find out how you can streamline your payment collection with ease.

A payment link is an easy, secure way for businesses to collect payments by sending customers a unique URL. 

When clicked, pay-by-link directs the customer to a secure payment page where they can complete their transaction using a variety of payment methods like credit or debit cards, Google Pay, or Apple Pay. 
Whether shared via email, text, or social media, payment links make accepting payments quick, convenient, and hassle-free; offering a flexible solution for businesses to process payments without the need for a physical card terminal or website checkout integration.

Going Deeper

But taking it a step further, payment links are more than just convenient – they’re a powerful tool for improving cash flow, reducing abandoned sales, and streamlining the payment process. 

Businesses can generate and share direct payment links instantly, whether in a customer service chat, through a CRM, or even during social interactions. 

With secure encryption protocols, these links aid in risk management by ensuring the payment details entered by customers remain protected.
For SMEs – especially those offering services or managing remote sales – payment links enable recurring payments, one-time online transactions, or even multiple payments in one go. By using this tool, businesses can offer greater flexibility, increase customer satisfaction, and reduce transaction times.

Implementing pay-by-link is a genuine game-changer for small and medium-sized enterprises (SMEs). 

As more customers turn to digital and contactless payments, SMEs must adapt quickly to meet demand. With payment links, businesses can easily accept payments online or remotely without needing a complex e-commerce platform or physical card terminal. These links streamline the payment process, allowing SMEs to offer secure, fast, and flexible payment options, reducing cart abandonment, improving cash flow, and ensuring quicker transactions.

For SMEs that may not have robust websites or those dealing with remote clients, pay-by-link provides an affordable, effective solution to offer secure payments while scaling customer reach. 
With minimal setup, it empowers businesses to collect timely payments, offer better customer experiences, and maintain competitiveness in an increasingly digital world.

The Ideal Use Case

Let’s imagine a small service-based business; a local photography studio. 

The owner often handles client bookings over the phone or through social media, but coordinating in-person payments or setting up an e-commerce platform has been a challenge. 

By using payment links, the photographer can send a payment request link directly to clients after a shoot – the client simply clicks on the link, enters their payment details, and completes the transaction.
The result? Faster payment collection, improved cash flow, and satisfied customers who enjoy a smooth, hassle-free experience. This is the kind of flexibility pay-by-link offers, making it ideal for businesses with both digital and physical touchpoints.

Payment links offer a simple and efficient way for businesses to collect payments. Here’s a step-by-step breakdown of how the process works:

Create the Payment LinkThe business generates a unique payment link using its payment processor or payment service provider. This can be done through a payment platform, app, or customer dashboard. The link is typically tied to a specific transaction amount, making tracking easy.
Send the Payment LinkOnce created, the business can send the payment link to the customer through various channels: via email, SMS, social media, or even through customer service chat. The flexibility of payment links allows businesses to reach customers where they are.
Customer Clicks & PaysWhen the customer receives the payment request link, they simply click on it, redirecting them to a secure payment page. Here, they can review the transaction details and enter their credit or debit card information, or choose options like Google Pay or Apple Pay to complete the payment.
Payment ConfirmationAfter entering their payment details, the customer confirms the transaction. The payment processor handles the secure online transaction, and both the business and the customer receive payment confirmation in real time.
Funds Are CollectedThe business can now easily track and receive funds, and the payment process is complete. Payment links simplify payment collection for one-time or recurring payments, making the transaction seamless.

Do People Still Use QR Codes?

Absolutely! While they initially gained popularity in the early 2010s, QR codes have seen a major resurgence in recent years, partly due to the global pandemic, especially in the era of contactless technology and digital payments. 

QR codes offer a fast, cost-effective way to accept payments for businesses, particularly SMEs. Customers simply scan the code with their smartphone to complete transactions without needing to touch a card machine or input payment details manually. This method has become especially popular since the COVID-19 pandemic, when the demand for safe and convenient payment options increased dramatically.
Moreover, QR codes’ versatility allows them to be used across industries. They’re frequently found in stores, on restaurant tables, invoices, and even on social media to help businesses link directly to payment pages or provide additional services. Many payment processors now offer QR code functionality as part of their payment processing solutions, making it easier than ever for businesses to integrate this technology into their operations.

As the digital payments landscape continues to evolve, pay-by-link technology looks set to be very much part of the furniture. It not only simplifies transactions for businesses and customers alike, but also offers unparalleled flexibility. 

With the ability to generate unique payment links, SMEs can easily adapt to various sales channels – whether that’s through email, social media, or even customer service chats. And the benefits of payment links extend beyond convenience:

  • They enhance security by directing customers to a secure payment page, minimising the risk of fraud associated with traditional payment methods. 
  • Additionally, they support multiple payment methods, including credit and debit cards, Google Pay, and Apple Pay, making it easy for businesses to cater to diverse customer preferences.
  • For small businesses, embracing pay-by-link technology not only streamlines the payment process but also fosters a better customer experience, leading to increased satisfaction and loyalty. 

As eCommerce grows, having flexible and efficient payment solutions will be crucial for staying competitive. Contact Fibonatix today to discover how we can help you integrate this powerful tool into your payment strategy.