What Is Pay by Link and How Does It Work?
Learn about Pay by Link, a versatile digital method designed for seamless payment collection. Uncover its mechanics and diverse applications.
Pay by Link is a digital payment method where businesses generate a unique, secure URL to request payments. This approach is popular for its flexibility and accessibility in collecting funds. It meets consumer demand for convenient, rapid transactions, simplifying payments and adapting to diverse commercial interactions.
Understanding Pay by Link
Pay by Link uses a unique, secure URL that directs customers to a dedicated payment page. This online service allows merchants to request payments without a full e-commerce website or complex integrations. Payment service providers generate these links and process transactions. The link ensures payment details are handled securely, often incorporating encryption and PCI DSS compliance. It embeds information like payment amount, currency, and goods or services description, reducing manual input.
How Pay by Link Transactions Work
The process begins with the business generating the payment link. Businesses create these links through their payment service provider’s dashboard or via an API integration. During creation, the business specifies transaction details like amount, currency, and purpose. Some systems allow setting an expiration date or customizing the payment page with branding.
Once generated, the business shares the unique URL with the customer through digital channels. Common methods include email, SMS, or messaging applications like WhatsApp or Facebook Messenger. This allows businesses to reach customers without requiring physical presence or a complex website. The link serves as a direct portal to complete the payment.
Upon receiving the link, the customer clicks it, redirecting them to a secure, hosted payment page. Here, pre-defined transaction details are displayed, and the customer enters payment information. This typically involves credit or debit card details, though some systems support digital wallets or bank transfers. After confirming, the transaction is processed securely. Both parties usually receive immediate confirmation via digital receipts or dashboard notifications.
Typical Uses of Pay by Link
Pay by Link offers versatile payment collection across many business scenarios. For service-based businesses, such as consultants or freelancers, it can send invoices for completed work directly via email or text, streamlining billing.
Businesses selling on social media, like Instagram or Facebook, can embed a “Pay Now” button or send links directly to customers. This facilitates quick sales without an e-commerce website. For ad-hoc or phone sales, a business can generate an instant link for immediate payment, useful for transactions outside formal checkout.
Pay by Link is suitable for requesting deposits for bookings or services, allowing customers to secure appointments or reservations. Hotels can send guests a payment link for advance booking deposits. This method also collects payment from customers not physically present, such as for remote sales or deferred payments.