--- title: Payment Method Categories | Shopware Community Hub description: >- Six payment families, PayPal Web SDK v6 availability, wallet and BNPL options, and merchant trade-offs at checkout and settlement. canonical_url: 'https://hub.shopware.com/learn/unit/payment-method-categories' --- # Payment Method Categories - **Identify** the six main payment families—**cards**, **wallets**, **bank-based**, **BNPL**, **vouchers**, and **real-time payments**—and when each fits merchant needs. - **Explain** how **PayPal Web SDK v6** continuity and **availability drivers** affect which methods you can enable in **Shopware administration**. - **Name** common **Shopware Payments** wallet and **BNPL** options—including **Apple Pay**, **Google Pay**, **Venmo**, **PayPal Pay Later**, and **Klarna**. - **Compare** method families using settlement, refund, dispute, and operational trade-offs from a merchant perspective. # Unit 3: Payment Method Categories **Strum & Co.** enabled every payment method available on their first go-live. Three months later, their support queue had a pattern: half the tickets came from two methods that covered less than 10% of their volume. The methods were not wrong — they were just misconfigured for their audience. Choosing payment methods deliberately starts with understanding how each method family behaves — at checkout, in settlement, and when something goes wrong. This unit covers the six main families: **cards**, **wallets**, **bank-based payments**, **BNPL**, **vouchers**, and **real-time payments**. --- ## Before You Choose: Availability and Configuration **Shopware Payments** intentionally mirrors the existing **PayPal** plugin portfolio to ensure continuity for merchants moving from the legacy extension — while building on **PayPal Web SDK v6** for improved performance, security, and future extensibility. Availability of specific payment methods depends on: - **Merchant account configuration** — what **PayPal** has approved on your business account - **Geographic eligibility** — country, currency, and regional product rules - **PayPal** support for the method in your market > Treat any method list as orientation, not a promise for your shop. Confirm what is enabled in **Shopware administration** and your **PayPal** contract before committing checkout UX or marketing to a specific method. --- ## Cards Cards — credit and debit — remain the most widely accepted payment method globally and the default expectation for most B2C checkouts. **How they work at checkout:** the shopper enters card details or uses a saved card. **3D Secure (3DS)** or **Strong Customer Authentication (SCA)** may be triggered depending on the region, card type, and risk profile. **Settlement behavior:** cards typically settle within one to two business days after capture, though timing varies by scheme and acquirer. **Refund behavior:** card refunds return funds to the original card. Processing time varies — typically three to five business days for the credit to appear on the customer's statement. **Dispute behavior:** card disputes follow **card scheme** rules — **Visa** and **Mastercard** have their own chargeback timelines and evidence requirements, which are generally stricter than wallet dispute paths. **Best fit for:** broad B2C audiences, cross-border orders, and any checkout where the shopper does not have a wallet or local method preference. > **For Strum & Co.:** cards cover EU and UK customers who do not use **PayPal** and handle most cross-border orders to Switzerland. They are the fallback method that must always work. --- ## Wallets Wallets store payment credentials and allow faster checkout — fewer fields, often biometric authentication, and a trusted brand at the button. **Within Shopware Payments**, the wallet family commonly includes: - **PayPal Wallet** — the primary wallet on the native path; supports **Express Checkout** for accelerated flows - **Apple Pay** — available on eligible Apple devices and browsers - **Google Pay** — available on Android and Chrome-based flows - **Venmo** — region-dependent; do not assume it appears in every storefront **How they work at checkout:** the shopper authenticates with the wallet provider rather than entering card details. **Express Checkout** can surface earlier in the flow — on product pages or cart — reducing steps to purchase. **Settlement behavior:** wallet payments typically settle through the underlying funding source — card or bank — on that source's timeline. **Refund behavior:** refunds return to the wallet balance or the underlying funding source depending on the wallet and region. **Dispute behavior:** wallet disputes — particularly **PayPal** — follow the provider's own resolution process, which is often faster and more structured than card chargebacks. **Seller Protection** may apply to eligible transactions. **Best fit for:** mobile-first audiences, returning customers, and high-basket categories where removing friction at checkout has measurable conversion impact. > **For Strum & Co.:** **PayPal** carries meaningful volume — customers buying mid-range guitars often already have a **PayPal** balance or linked bank. **Apple Pay** and **Google Pay** improve mobile conversion for impulse accessories. --- ## Bank-Based Payments Bank-based methods pull funds directly from the shopper's bank account rather than via a card network. They are particularly strong in markets where card penetration is lower or where shoppers distrust card entry on unfamiliar storefronts. Common types include: - **Bank redirect** — the shopper is redirected to their bank's interface to authorize the payment (for example **iDEAL** in the Netherlands, **Bancontact** in Belgium) - **Direct debit** — funds are pulled from the bank account on a schedule; common for subscriptions and B2B - **Real-time bank pay** — instant bank transfer initiated at checkout, settled faster than traditional bank transfers **How they work at checkout:** the shopper selects their bank or is redirected to complete authorization. No card details are entered. **Settlement behavior:** varies significantly by method. Some bank redirects settle same-day; direct debit can take several days with a reversal window. **Refund behavior:** bank-based refunds typically require a separate bank transfer back to the customer's account — not an instant reversal like a card refund. This affects how support handles refund queries. **Dispute behavior:** bank-based disputes follow bank and scheme rules rather than card network rules. The dispute window and evidence requirements differ by method and region. **Best fit for:** local markets where bank-based methods are culturally preferred, high-value B2B orders, and merchants expanding into EU markets where card-only checkout leaves conversion on the table. > **For Strum & Co.:** local bank methods are essential for Dutch and Belgian customers. Enabling **iDEAL** and **Bancontact** on the relevant sales channels is not optional — it is the difference between completing and abandoning for a meaningful share of those markets. --- ## Buy Now, Pay Later (BNPL) **BNPL** lets shoppers split a purchase into installments or defer payment — with the merchant receiving the full amount upfront from the **BNPL** provider. **Within Shopware Payments**, the primary **BNPL** path is: - **PayPal Pay Later** — fully integrated on the native path; supports checkout integration and messaging on product and cart pages where available. **Native access** avoids the extra orchestration layers that add cost in some multi-provider stacks. **Klarna** — frequently mentioned alongside **PayPal Pay Later** in European market contexts — is typically its own integration (for example the **Klarna Payments** extension) rather than part of **Shopware Payments** natively. Both can run alongside each other where your agreements allow. **How they work at checkout:** the shopper selects a **BNPL** option and completes a brief eligibility check. Approval is typically instant. **Settlement behavior:** the **BNPL** provider pays the merchant the full order value (minus fees) on a defined schedule — the shopper's installment repayments are between the shopper and the provider. **Refund behavior:** refunds on **BNPL** orders typically cancel or adjust the installment plan. The process varies by provider and may require coordination with the **BNPL** back office. **Dispute behavior:** disputes on **BNPL** orders follow the provider's own process — for **PayPal Pay Later**, this is handled in the **PayPal Resolution Center**. **Best fit for:** higher average order values where installments reduce the barrier to purchase — instruments, premium gear, and multi-item orders. > **Market context on BNPL:** industry surveys suggest **BNPL** availability increases purchase likelihood for a meaningful share of shoppers. Treat this as category-level orientation for checkout design decisions — your measured uplift depends on your audience, basket mix, and how prominently the option is positioned. Run your own experiments before drawing conclusions for your specific catalog. --- ## Vouchers and Store Credit Vouchers and store credit allow customers to pay partially or fully using a balance held with the merchant — gift cards, promotional credits, or loyalty balances. **How they work at checkout:** the shopper enters a code or selects a stored credit at checkout. Many implementations allow partial payment — voucher covers part of the basket, another method covers the remainder. **Settlement behavior:** voucher redemptions do not involve external settlement — the value is deducted from a merchant-held balance. Only the remaining amount (if any) goes through external settlement. **Refund behavior:** refunds on voucher-based orders may return value to the voucher balance or to the secondary payment method depending on configuration. **Dispute behavior:** vouchers and store credit have no external dispute mechanism — disputes relate to the underlying payment method used for any remaining balance. **Best fit for:** loyalty programs, gift card schemes, promotional campaigns, and reducing friction for returning customers with existing credit. > **For Strum & Co.:** a store credit system tied to returns — where customers get credit instead of a refund — can reduce refund processing overhead and encourage repeat purchases on higher-value items. --- ## Real-Time Payments Real-time payment schemes — such as **SEPA Instant** in Europe — process bank transfers within seconds rather than the one-to-two business day timeline of standard bank transfers. **How they work at checkout:** similar to standard bank transfer or redirect flows, but with near-instant confirmation returned to both merchant and shopper. **Settlement behavior:** funds arrive in the merchant's account within seconds to minutes. This improves cash flow predictability significantly compared to batch settlement. **Refund behavior:** real-time payment refunds typically require a new outbound transfer rather than a reversal — similar to standard bank-based refunds. **Dispute behavior:** real-time payment schemes are generally low-dispute compared to cards, as the shopper actively authorizes the transfer. Dispute mechanisms vary by scheme and region. **Best fit for:** high-value B2B orders where payment confirmation before dispatch matters, merchants in markets with strong real-time payment infrastructure, and any scenario where settlement speed affects cash flow. --- ## Method Family Comparison at a Glance | Method family | Checkout experience | Settlement speed | Refund path | Dispute path | |--------------|--------------------|--------------------|-------------|--------------| | **Cards** | Card entry or saved card; 3DS possible | 1–2 business days | To original card; 3–5 days visible | Card scheme chargeback rules | | **Wallets** | One-tap or biometric; Express Checkout | Via underlying source | To wallet or source | Provider resolution; Seller Protection possible | | **Bank-based** | Redirect to bank or direct debit | Varies; same-day to several days | Separate bank transfer | Bank and scheme rules | | **BNPL** | Eligibility check; installment selection | Provider pays merchant upfront | Adjusts installment plan | Provider resolution center | | **Vouchers** | Code entry; partial payment possible | Internal; no external settlement | To voucher or secondary method | No external dispute mechanism | | **Real-time payments** | Bank redirect; near-instant confirmation | Seconds to minutes | New outbound transfer | Low dispute; scheme-dependent | --- Next comes local methods: why they lift conversion in specific markets, how PayPal Web SDK delivers eligible options at checkout, and what drives availability across regions.