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Benefits of payment links for your business

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The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

Last editedJuly 20232 min read

A smooth, seamless payment process reduces stress for you and your customers. Offering payment links is one of the best ways to reduce friction at checkout – but how does this work exactly? In this guide, we’ll cover the benefits of payment links for business and give you a few tips to get started.

What is a payment link?

Let’s start with the main question: what is a payment link? A payment link (or pay link) is a unique URL you send to customers to complete a transaction. By clicking on the link, the customer’s redirected to a secure checkout page where they can input their payment details or confirm the transaction. This eliminates the need for a separate website or payment gateway. Payment links can be sent out to customers using social media channels and emailed invoices. They can also appear as a ‘Pay Now’ button on your website’s checkout page.

How do payment links work?

To initiate payment, the customer is sent an email, text message or web link with the ‘Pay Now’ button. This button is linked to a unique URL, so when it’s clicked by the customer, they’re redirected to a custom payment page displaying how much is owed. This also shows the payment methods accepted, such as digital wallets, card details, or bank details. The customer simply enters their details into the fields shown to complete the purchase. Some payment links use stored information or link with the customer’s banking app to do away with this extra step entirely; the customer simply needs to verify payment with a single click or swipe.

Payment link benefits

There’s more than one payment link benefit, both for business and customer.

Multiple payment methods: Customers will see a variety of options once they’ve clicked the link, usually including easy online payment methods for a quick and efficient transaction.
Reduced processing costs: Payment link benefits for smaller businesses include reduced overhead cost. There’s no need for separate POS equipment, cutting down on setup and maintenance. Many pay link services integrate with apps for a mobile-friendly payment solution.
Improved customer satisfaction: This method is convenient for customers, who can click on the link and pay at their leisure. When links are sent out using social media or messaging services, this also enables fast and easy communication between business and customer.
Easier process: Using links creates a frictionless payment process in comparison to lengthy checkout pages and gateways that involve multiple redirections. For businesses, the benefit is that you can customize your payment experience without advanced IT skills.

How to create a payment link

While the basic mechanism and benefits behind payment links are the same, there are several ways to go about setting up a system that works for you. An increasing number of payment gateways and processors now offer payment links as a standard feature. Accounting software packages also include this feature as part of their invoicing tools. If you’re already using software, check to see if you’re able to create a payment link through the existing service.

GoCardless makes it easy for Australian businesses to create and send payment links using its new PayTo service. It’s part of Australia’s New Payments Platform (NPP), which works together with banks to facilitate bank-to-bank payments in real time. It’s designed to give customers more control over one-off and scheduled payments for a smoother experience. Send a unique URL link to your customers. This redirects them to their banking app, where they’ll be able to verify or pre-authorise recurring payments for instant collection. Customers can choose between a unique PayID or traditional bank account number for secure transactions. It’s cheaper than online card transactions, not to mention more convenient for customers and businesses alike.

We can help

GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.