How to Create and Share a Payment Link

What Is a Payment Link?

Payment links have become a widely adopted way to request online payments from customers across industries. They can utilise the link to view your request and pay you immediately, with all of your payment information already filled in (such as the payment amount, a description, and your bank account information). You may prefer to use these over an invoice because they are less formal and easier to create. Customers can pay using credit or debit cards, UPI, mobile wallets, BNPL services, or instant bank transfers when you create and share a payment link. If you’re looking for a credit card payment link solution, most platforms support that by default.

The Benefits of Using a Payment Link

Sending payment links has a lot of benefits, especially if you don’t want to take cash from your consumers.

• E-wallets, credit cards, and Direct Debit are just a few of the payment options available through links.
• Customers and businesses benefit from the links since the entire transaction may be performed on a smartphone without downloading additional apps.
• You can save clients’ information to facilitate repeat or recurring transactions, making the payment process faster and easier.

How to Generate and Send a Payment Link

Setting up your payment connection is easy, and the process is the same regardless of which platform you’re using.

Step 1: Go to the payment creation page on the platform and select the appropriate payment link option. If you're using platforms like GoCardless, Stripe, or Razorpay, simply navigate to the payment link section to generate a new link.

Step 2: Fill in all essential data in the payment link window. The form will have vacant spaces for payment information, such as the recipient’s name, currency, and due amount. You can also create a payment link for your bank account, depending on your provider’s setup — the funds will be deposited directly once the customer pays.

Step 3: Add advanced information to your payment URL. You can, for example, specify whether you want your consumer to approve future payments or if they want automatic approval. You can also specify where clients should be redirected after they’ve clicked through to authorise payment.

Step 4: Save your modifications and send your final payment link by your preferred methods, such as an SMS message or email.

When Should You Use Payment Links?

Sending payment links has a lot of advantages, which is why so many various sorts of businesses use them, including those relying on local infrastructure like payment gateway in Ethiopia. Listed below are a few examples:

• Businesses that do not have an internet store or a physical point of sale system require a simple payment option.
• Users can send payment links for one-time requests to freelancers or consultants who offer professional services. Buyers can receive links from social media stores on Facebook or Instagram via a secure channel.
• On the other hand, an email invoice is better if you need to include information like VAT and recipient information. In addition, while traditional payment links did not include a due date, many modern tools now allow you to set an expiration date or due date to improve collection cycles. This may not be the ideal solution if you need on-time, regular payments from your clients to maintain a constant cash flow. As a result, payment connections should be incorporated into a larger payment strategy.

Payment Links vs Invoices

While both payment links and invoices are used to collect payments, they serve slightly different purposes. Invoices are more formal, often used for B2B transactions and typically include itemized details, tax information (such as VAT), and payment due dates. They are ideal when you need to keep accurate records or offer net terms.

Payment links, on the other hand, are more flexible and faster to generate. They are great for quick, one-time payments, freelancers, small businesses, or social media sales. With modern tools, some payment links can now include due dates and transaction details, narrowing the gap between the two. Ultimately, many businesses choose to use both as part of a broader payment strategy.

Final Thoughts

Payment links can be used for almost anything. Are you taking payments for an upcoming event? Share the payment link via WhatsApp, Telegram, Instagram, or any other channel your audience prefers. Do you want to get paid once, or over and over again? Send an email or SMS with a payment link (no cost attached).