10 Best Payment Methods for Small Businesses in 2025 (Pros & Cons)

Are you looking for the best payment methods for small businesses so you can stay ahead in 2025? According to a 2023 Weave study, 9 in 10 consumers now use some form of digital payment [Weave, 2023]. This means business owners, finance teams, and freelancers must offer multiple ways to pay—or risk losing out on revenue. If you’re curious about advanced merchant solutions, check out our best payment gateways in the US (ranking & comparison) to explore key features.

Why Payment Diversity Matters

Offering a variety of payment methods helps you cater to different customers. Interestingly, small businesses that accept four or more payment options bring in seven times more annual revenue than those that accept fewer than four [Weave, 2023]. Furthermore, 41% of customers avoid certain stores if they don’t see a payment type they prefer [Weave, 2023]. By giving people multiple ways to pay—credit cards, mobile wallets, and more—you can boost sales and keep clients coming back.

Key Trends for 2025

The market is moving toward convenience and speed. Digital payments are projected to handle $20.37 trillion in transactions by 2025 [The Payments Association, 2023], reflecting ongoing consumer demand for faster and more flexible methods. Text-to-pay is also on the rise, with 35% of customers showing interest while only 4% of small businesses currently offer it [Weave, 2023]. Additionally, subscription billing, cryptocurrency payments, and buy now/pay later (BNPL) models continue gaining momentum.

Below are 10 top picks for 2025, each with pros and cons to help you decide what suits your situation.

1. Mural Pay (Pros & Cons)

If you’re looking for a business-focused solution, Mural Pay stands out. It’s designed to handle cross-border transactions quickly, making it a favorite among organizations that want to pay contractors, suppliers, and remote teams all over the globe.

Pros:

• Business-First Approach: Unlike consumer-oriented apps, Mural Pay focuses on compliance (KYB/KYC) and high-volume payouts.

• Multiple Currencies: Lets you convert funds into 40+ currencies at competitive rates.

• Stablecoin On/Off-Ramps: Ideal for emerging markets where crypto-based transfers can reduce costs and wait times.

• Speed & Cost Efficiency: Often cheaper and faster for international payouts compared to providers like Wise or Payoneer.

Cons:

• Suited for Growing or Larger Operations: Small hobby sellers may not need the full range of features.

• Limited for Personal Use: Primarily built for corporate and SMB needs, rather than casual transactions.

Compared to Wise, Mural Pay offers more robust compliance for business requirements and direct stablecoin-to-fiat capabilities. Compared to Payoneer, Mural Pay is typically faster on cross-border transfers and provides better exchange rates.

2. Credit & Debit Cards (Pros & Cons)

Credit and debit cards remain a go-to choice for in-person and online purchases. They’re widely recognized, which enhances customer trust.

Pros:

• Universal Acceptance: Most customers already own a card.

• Familiarity: Shoppers feel comfortable with card transactions.

• Quick Processing: Funds often settle faster than checks.

Cons:

• Transaction Fees: Ranging from 1.5% to 3.5% plus fixed charges.

• Chargeback Risk: Disputes can lead to lost revenue.

In 2025, card usage still dominates many industries. However, watch out for rising interchange fees and stricter security mandates.

3. Mobile Wallets (Pros & Cons)

As consumer habits change, apps like Apple Pay, Google Pay, and Samsung Pay are becoming a natural extension of daily life. Digital wallets already account for a large share of eCommerce spending worldwide.

Pros:

• Contactless Convenience: Speeds up checkout.

• Enhanced Security: Tokenization adds protection for user data.

• High Adoption: Digital wallets process around 50% of global eCommerce spending [The Payments Association, 2023].

Cons:

• Device & App Compatibility: Not everyone has the same smartphone or wallet preference.

• Possible Higher Fees: Some third-party wallet providers charge extra.

If you sell internationally, offering mobile wallet payment can be a great add-on. Need more international insights? Check out our Popular Payment Methods for International Trade (Edition).

4. Buy Now, Pay Later (Pros & Cons)

BNPL services such as Klarna and Afterpay give customers a way to split their payments into smaller installments. This is popular among younger demographics and eCommerce stores with mid-to-high-price goods.

Pros:

• Increases Average Order Value: Shoppers spend more when splitting payments.

• Easy Integration: Many eCommerce platforms have built-in BNPL options.

• Fast Approval: Customers get real-time acceptance or denial.

Cons:

• Merchant Fees: BNPL providers may charge you more than traditional credit card processing.

• Risk of Overextension: If customers default, you still receive funds, but long-term usage might raise broader financial concerns.

BNPL can grow your sales but be mindful of any potential integration challenges and extra fees.

5. PayPal (Pros & Cons)

PayPal has a massive user base and broad acceptance around the globe. Many small businesses already offer PayPal as an online wallet option or a checkout button.

Pros:

• Familiar Globally: Clients instantly recognize PayPal.

• Various Payment Forms: Debit, credit, bank account, or PayPal balance.

• Easy Setup: Minimal technical steps for basic integration.

Cons:

• Higher Transaction Fees: Can be more expensive than some alternatives.

• Account Holds: Large incoming amounts sometimes trigger temporary freezes.

Curious about which PayPal account type makes sense? Explore PayPal Business vs. Personal: Which Account Is Right for You? to learn more about differences in fees and features.

6. ACH & Bank Transfers (Pros & Cons)

Automated Clearing House (ACH) enables direct bank-to-bank transfers without card networks. This method is especially popular for recurring billing or large lump-sum transactions.

Pros:

• Lower Fees: Usually cheaper than card processing.

• Great for Recurring Payments: Ideal for subscription-based models or supplier invoices.

• Reliable for High Ticket Transactions: Larger transfer limits compared to many digital wallets.

Cons:

• Slower Settlement: Funds can take a few days to clear.

• Requires Bank Info: Customers might hesitate to share routing and account numbers.

ACH remains a staple for domestic B2B transactions and subscription services with stable client relationships.

7. Payment Gateways (Pros & Cons)

Payment gateways serve as intermediaries between your online store and the payment processor. Examples include Stripe, Braintree, and Authorize.net. They focus on encrypting and transmitting payment data securely.

Pros:

• Broad Payment Method Support: Including credit cards, digital wallets, and some local payment channels.

• Strong Fraud Tools: Many gateways include advanced fraud detection software.

• Automated Integration: Often syncs with eCommerce platforms.

Cons:

• Setup Complexity: May require more technical knowledge to configure.

• Gateway Fees: Some charge monthly fees on top of transaction costs.

Want to see how gateway solutions can be part of an international sales strategy? Read our Invoice Payments 101: How They Work & Expert Tips for ideas on how a gateway ties into billing systems.

8. Cryptocurrencies (Pros & Cons)

While still niche for daily purchases, cryptocurrencies such as Bitcoin, Ether, or stablecoins can attract tech-savvy customers. Some businesses use stablecoins—like USDT or USDC—for quick cross-border settlements.

Pros:

• Faster Cross-Border Deals: Crypto can bypass traditional banking delays.

• Potentially Lower FX Fees: Converting crypto to local currencies can be cheaper than standard bank transfer rates.

• Access to Emerging Markets: Ideal for places where legacy banking is slow or lacking.

Cons:

• Volatility: Coins like Bitcoin may fluctuate rapidly.

• Regulatory Concerns: Rules differ by region, and compliance can be tricky.

• Education Barrier: Some customers remain skeptical or unfamiliar with crypto.

You might consider stablecoins if you frequently pay contractors in LATAM or other markets. Mural Pay also supports stablecoin on/off-ramps as part of its multi-currency offerings.

9. Text-to-Pay & QR Code Payments (Pros & Cons)

Text-based payment links allow customers to complete transactions on their phones. QR codes can serve a similar function, letting users scan and pay in seconds.

Pros:

• Quick & User-Friendly: Eliminates some checkout friction and suits mobile-driven audiences.

• Minimal Hardware Needs: QR codes only require a printed or digital code at checkout.

• Rising Popularity: Especially appealing to younger consumers.

Cons:

• Adoption Gaps: Not all demographics are comfortable with text message payments or scanning codes.

• Possible Tech Hurdles: Requires reliable mobile connectivity for real-time processing.

If you run a coffee shop, food truck, or small retail store, these methods can reduce wait times and modernize the checkout process.

10. Subscription & Recurring Billing (Pros & Cons)

From software-as-a-service to monthly product boxes, subscription billing automates payments on a schedule your clients approve in advance.

Pros:

• Predictable Revenue: Helps smooth out cash flow.

• Customer Loyalty: Subscribers often remain long-term users.

• Simple Reconciliation: Automated charges reduce manual accounting tasks.

Cons:

• Initial Setup: Requires a platform supporting recurring billing (e.g., specialized software).

• Potential Churn: If you fail to deliver ongoing value, cancellations increase.

For membership-driven models, subscription billing is a no-brainer. Just remember to stay transparent about recurring costs so customers don’t feel caught off guard.

How to Select the Right Mix

Finding the perfect blend often depends on your target market and operational needs. If you invoice clients frequently (e.g., professional services or B2B sales), a solution that automates billing might be key to faster payments. For deeper insights on invoicing, see Invoice Payments 101: How They Work & Expert Tips.

Consider:

• Transaction Size: High-value sales might favor ACH or crypto to lower fees.

• Customer Preferences: Are your shoppers younger and phone-centric, or older and more traditional?

• International Reach: Tools like Mural Pay handle currency conversions for cross-border transactions.

• Budget & Fees: Evaluate monthly or per-transaction costs.

Wrapping Up

Offering various payment options can make or break your day-to-day revenue potential. Mural Pay is a strong choice if you need a business-centered approach for global payments, stablecoin off-ramps, and multi-currency transactions. Either way, combining a few methods—whether it’s mobile wallets, BNPL, or ACH—creates a frictionless checkout experience for your customers.

If you want more guidance in picking the most fitting providers, explore our Key Factors for Choosing a Payment Service Provider. Diversifying how you accept funds doesn’t just boost sales—it can position your company as a forward-thinking, customer-friendly brand ready to thrive in 2025 and beyond.

References

1. Weave. (2023). “Small Business Payment Statistics.” Available at: https://www.getweave.com/new-small-business-payment-statistics/

2. The Payments Association. (2023). “The Future of Payments: Key Trends That Will Shape 2025.” Available at: https://thepaymentsassociation.org/article/the-future-of-payments-key-trends-that-will-shape-2025/