What is a Payment Link Generator and How does it Work?

Suppose you are a small business owner or new eCommerce merchant trying to strengthen your position in an already competitive marketplace. Streamlining your payment experience is probably at the top of your to-do list. This should be because 22% of customers leave their carts due to a complex checkout process.

While creating an optimised payment experience for customers, many eCommerce merchants often forget about the easiest yet underrated payment enabler: payment links.

Payment links, generated through a link generator, allow customers to pay instantly through their preferred payment modes (UPI, Credit Card, Debit Card, Wallet and whatnot!). You can offer custom offers and discounts to persuade customers who abandoned their carts using payment links.

While most eCommerce stores already know about payment links, there is a serious knowledge gap regarding how to generate them and, more importantly, how to effectively use them to win customers’ trust. That’s exactly what we will show you in this article.

Content Index

What is a Payment Link Generator?

A payment link generator generates links without any hassle, extending the checkout to consumers and enabling them to make payments at their convenience.

It creates shareable links that continue your brand identity, which you can send multiple times through any platform – WhatsApp, email, SMS, Facebook Messenger, etc.

You can create custom payment links for payment methods like UPI, Credit/Debit cards, BNPL, Digital Wallets, and net banking. It can be used very effectively to bundle personalised offers for consumers to complete the purchase.

When Should You Use a Payment Link Generator?

Any business wanting to create a simple and personalised payment process for their customers without heavy lifting should use an online payment link generator. Going by our observations, the following types of businesses use a payment link generator most commonly:

Small business owners who don’t have a website for their store and mostly rely on WhatsApp, Facebook Messenger, or SMS marketing

Suppose you don’t have enough budget to build a complicated eCommerce website, or you are in the process of creating one. In the meantime, you are selling your products through WhatsApp, Facebook Business, or Instagram shops.

Cash On Delivery (COD) is not the best way to collect payment because of high return rates. A payment link generator helps you generate customised payment links for each transaction without a proper website setup.

Another great way to leverage a payment link generator is when you collect payments through SMS.

Suppose your business primarily functions on SMS marketing, and you have a long list of users who receive product recommendations and SALE notifications through SMS. In that case, using a payment link generator to request payment directly for an optimised payment process makes sense.

Brick-and-mortar stores are slowly adapting to the world of digital payment methods

Imagine that neighbourhood retail store taking baby steps to collect payments through digital channels. Since many of their audiences still prefer cash payments, they cannot just transition to BNPL and credit cards in a single day.

On the other hand, they cannot give up on the youths who prefer new-age payment methods like UPI. In fact, as of April 2024, 581 banks are live on UPI, and the total number of transactions was INR 13,303.99 million.

The best way for these retailers is to find a sweet spot between modern and traditional payment methods, and that’s why they need to opt for the pay-by-link option. Since it is easier to pay through payment links, even boomers and generations before that may also try to make payments through this method.

Small and medium-sized online stores selling through multiple channels and having a segmented customer base

Suppose you have an eCommerce store, but it is not your business’s only revenue generation source. Your business operates on a multi-channel model, accepting payments through SMSes, emails and newsletters, social media platforms, blogs, etc. In that case, you have segmented customer bases. Instead of trying out multiple payment modes, it is a good idea to focus on a uniform payment mode with payment links accessible to all users.

NGOs and Non-profits raising donations

Payment links are the most convenient method when accepting donations or raising funds for a charitable cause. Getting people to donate is a tough job, and even with little inconvenience in the payment flow, they are expected to leave without completing the transaction.

A payment link is a reliable and streamlined way of collecting donations without friction.

Service providers and consultants accepting payments

Individual service providers can use payment links as their sole payment request mode when collecting client payments. Without a payment link, the process of clearing an invoice is rather long: you have to send an invoice, the organisation needs to add your account details as a beneficiary in their banking system (which can take some time), and every month, they will need to process your payment manually, leading to errors.

On the flip side, if you send a payment link to your client, they can directly clear the payment using their preferred payment methods (credit cards or UPI), and the process will be faster and instantaneous. The best part is you, the service provider, will also get visibility into your payment status within a single dashboard.

Travel and hospitality companies

Travel and hospitality companies usually follow custom pricing models. To avoid the hassle of manually sending invoices to different clients, create customised payment links and share them through any preferred online channels so the clients can complete the payment at their convenience.

How Does a Payment Link Generator Work?

Below is the working process of a payment link generator:

Step 1: The merchant’s server requests for a payment link

Step 2: The payment link generator creates the payment link based on their request

Step 3: The merchant receives it and shares the payment link with the customer

Step 4: The customer receives and clicks on the online payment link

Step 5: The payment generator redirects the customer to the payment page

Step 6: Customer submits their payment details to complete a one-click checkout

Step 7: The payment link generator processes the payment and shows a “Payment Succesful” message on the screen

Step 8: The merchant receives a payment confirmation notification

Benefits of Using a Payment Link Generator for an eCommerce Business

But why should you use a payment link generator in the first place? Well, here are the benefits of using a payment link generator:

Reduce cart abandonment rate

The biggest advantage of payment links is that users don’t have to return to your online store every time to complete a transaction. If a user abandons their cart, you can directly share the payment link with them through a cart recovery email or SMS, requesting they complete their purchase. This increases customers’ convenience, and they complete a payment transaction sooner.

Streamline and optimise your payment process

Payment links have high accessibility as you can share payment links with your customers through their preferred communication channels. Once customers click on a payment link, it redirects them to their preferred payment method to create an optimised payment experience. Setting up a payment link using any payment generator is a zero-hustle process where you just have to fill out details like the amount, customer contact number, etc., and that’s all.

Shift towards cashless transactions

If you want to expand cross-border, relying on a particular currency is not the best idea. India is also shifting towards becoming a cashless economy, and it’s high time merchants tried out different digital payment methods to find the most suitable one. When discussing online payment methods, payment links are hands down the easiest starting point.

How to Create Payment Links Using a Payment Link Generator?

Creating a payment link is relatively simple once you have selected the apt payment link generator or payment gateway.

Below are the steps:

Step 1: Integrate the payment gateway with your eCommerce platform. You can find their built-in marketplace or connect via an API.

Step 2: Sign up for your desired payment gateway and provide all the necessary details to complete the initial verification.

Step 3: Go to the dashboard and find the payment link generator. Add the required details, such as the amount, payment method(s), link expiration time, etc.

Step 4: Now click the “Generate” or “Create” button, and your payment link is ready. Share it with your customers through social media, messaging, or email. You can even add it to your website. Some payment link generators allow you to configure auto reminders for recurring payments.

Step 5: The customer will now complete the payment. If your payment link generator supports one-click checkout and optimises the payment experience by showcasing the eligible payment methods for customers, that’s extra special. Customers won’t need to remember OTPs or UPI IDs, as checkout only takes a click.

Step 6: Any good payment link generator has an intuitive dashboard to track payments and quickly access customer details.

What to Look for in a Payment Link Generator?

There is no right or wrong when selecting a payment link generator. Instead, focus on the features you want it to support.

Below are some of the key features to look for in a payment link generator:

Intuitive dashboard to track payments: There should be a standard dashboard where you monitor the transactions and expired payment links and send auto-reminders to the customers who didn’t complete the checkout. The sender should see whether the payment link has been delivered or paid. Brownie points if you can manage or edit your payment links to configure offers

Supporting multiple payment methods: It should be compatible with all the latest digital payment methods like UPI, BNPL, Credit/Debit cards, digital wallets, and net banking

PCI-DSS compliance: The payment link generator should be compliant with the Payment Card Industry Data Security Standard (PCI-DSS) and use encryption to protect sensitive data

Intelligent payment routing and payment optimisation: Brownie points if your payment link generator comes with an intelligent payment router that routes customers to their eligible payment route to complete a checkout faster and creates an optimised checkout experience with a one-click checkout

Hassle-free integration with your eCommerce platform: No matter which eCommerce platform you use or choose to use when your store is ready to operate, make sure that the payment link generator integrates seamlessly with it, and there’s no long checkout process

Looking for a Payment Link Generator?

Try Nimbbl.

Are you in search of a payment link generator that:

Generates sharable payment links within seconds
Supports multiple payment methods
It has built-in one-click checkout and payment router to make the payment process hassle-free
It comes with a built-in dashboard to track multiple payment statuses
Compatible with all leading eCommerce platforms like Shopify, Wix, WooCommerce, Magento and so on

We have the perfect solution for you: Nimbbl Payment Link Generator.

Want to try it first-hand?

Get in Touch

What is a Payment Link Generator? A Complete Guide