Link Payment Guide: What They Are and When to Use Them

Payment links create a seamless checkout experience for customers. Merchants can send payment links via digital invoices, emails, SMS messages, or social media posts. Customers click the link and are transported to a payment gateway to complete the transaction. In some cases, customers will also have the option to pre-save credit card details to facilitate a one-click checkout process.

Key Takeaways

A payment link takes the buyer to a secure payment gateway via a digital URL.
All payment links are officially logged as sales receipts.
You must partner with a payment provider whose features support your checkout model in order to use payment links.
Payment links, while convenient, are not immune to the threat of fraud.

A 2023 study from the Diary of Consumer Payment Choice via the Federal Reserve notes that consumers prefer credit cards for the sake of convenience ^[1] The Federal Reserve, Financial Services. “2023 Findings from the Diary of Consumer Payment Choice” Accessed on August 12th, 2025 . Payment links simplify the payment process, making it even easier to complete credit card transactions. In doing so, payment links help businesses increase conversion rates and decrease late payments. This guide explores payment links, their benefits, their disadvantages, how to set up new payment links for your business, and a range of related topics. Read ahead to learn more about one of the best-converting payment methods available to merchants!

Defining Link Payments

A payment link is a digital URL that redirects customers to a secure payment gateway. Merchants can send payment links via email, invoice, SMS, or social media posts. Payment links can be customized based on the transaction. Sometimes, they are customer-specific, with a pre-defined amount already set when the customer reaches the payment portal. In other instances, payment links allow customers to enter the amount they wish to pay or choose specific products or services. This versatility makes payment links a powerful tool for simplifying and streamlining the payment process.

What is a Link Payment, and How Do They Work?

So, what is a payment link? A payment link is a URL that redirects customers to a secure payment gateway. Merchants can send payment links using SMS messages, emails, social media posts, advertising materials, QR codes, and more. Let’s break down how payment links work step by step:

1. The customer receives a payment link

So, what is a payment link? A payment link is a URL that redirects customers to a secure payment gateway.
The link may be accompanied by text explaining its purpose, such as a message about paying an outstanding invoice.

2. The customer clicks the link

Next, the customer clicks the link and is redirected to a payment gateway.
The gateway uses encryption to ensure a secure connection between the customer and the merchant’s credit card processor.

3. The customer inputs credit card details to complete the payment

The customer enters card details to complete payment.
Entering credit card details into the payment gateway includes billing information (name, address, etc.)
The gateway may let customers save payment details for future use.

4. The payment is transferred to the merchant and recorded internally

Lastly, the money from the transaction transfers to the business’s merchant account.
A payment record is logged internally; in most cases, the customer receives a receipt via text or email to confirm the payment.

What Type of Transaction is Recorded When a Customer Pays via a Payment Link?

When a customer pays using a payment link, it’s treated similarly to any other type of credit card transaction: it’s recorded as a sales receipt. A payment link doesn’t have a separate function from a traditional credit card transaction. Customers click the link and are directed to a payment gateway to input their credit card details — it’s similar to any online payment. There is no difference between payment links and traditional credit card transactions.

Link Payment Benefits

Payment links offer a variety of advantages to both merchants and customers. Let’s explore the top benefits of this payment method below:

1. Payment convenience

By sending a link directly connected to a gateway, merchants ensure their customers can conveniently complete payment in seconds.
To settle the transaction, the customer does not need to log into an account, send money via an ACH transfer, or perform other time-consuming efforts.

2. Security

Over-the-phone and email payments require customers to disclose sensitive payment details to a staff member, creating security vulnerabilities.
Many customers prefer the security of an encrypted payment gateway (available via a payment link).

3. Customization

Many payment link providers make it simple to customize the checkout process.
Merchants can design their very own signature checkout portal with logos, custom branding, color schemes, and more, controlling the checkout experience from start to finish.

4. Pre-saved payment details

Some payment link platforms allow customers to save payment details for future use. In doing so, customers aren’t required to re-enter card numbers or billing addresses.
Research suggests that 62% of customers ^[2] Crypto Cloud. “What Aspects Influence the Conversion Rate of a Website” Accessed on August 12th, 2025 abandon purchases if the payment process exceeds two minutes, so pre-saved payment details are a significant asset to merchants.

5. Quicker payments

Ultimately, all the previously mentioned benefits lead to the primary advantage of using payment links: Quicker payments! As a business, ensuring all outstanding invoices are paid promptly is critical.
Research suggests that invoices sent with digital payment links are paid three times faster ^[3] Sentoo. “How to get paid faster with payment links” Accessed on August 12th, 2025 on average. Streamlining the payment process with links enables businesses to benefit from improved cash flow and financial stability.

Disadvantages of Link Payments

While payment links offer a variety of benefits to merchants and customers, there are some downsides associated with this payment method:

1. Fraud exposure

While payment links direct customers to encrypted payment gateways, which are more secure than over-the-phone and email payments, there are still vulnerabilities.
Since the customer does not need to present the physical card to complete the transaction, scammers can use payment links to input stolen card details. Hence, it’s critical to use fraud prevention tools, such as two-factor authentication (2FA) and address verification, to spot scammers.

2. Higher Processing Fees

As card-not-present transactions are a higher risk for merchants and payment processors, they usually come at a higher price.
Payment links typically carry higher credit card processing fees than in-person credit card transactions. Likewise, they are more expensive than traditional invoice payment options, such as ACH transfers.

3. Potential for impersonation

Criminals may spot an opportunity if your business routinely sends customers payment links.
Scammers may send fraudulent payment links, impersonating your company and encouraging customers to complete payments. While this remains outside a merchant’s control, it still reflects poorly on their business if customers fall victim to scammers. It’s critical to monitor for potential scams and warn customers if a third party attempts to impersonate your business.

Steps to Setting Up a Link Payment Page

If you’re ready to harness the power of payment links, it’s time to set up a payment link page for your business. Follow the steps below to get started with payment links:

1. Partner with a payment provider

First, you will need to find a payment provider with payment link capabilities. Working with a provider that can help you automate payment links is essential.
Automation is helpful for billing customers and following up on late payments. Likewise, it’s best to work with a payment provider that offers a full suite of payment options, not just payment links.

2. Set up a payment link

Next, it’s time to set up a payment link. While this process will vary depending on the payment provider, you’ll usually have the option to customize payment amount, payment limits, link expiry, and other details.
For example, you can generate a payment link that anyone can use to purchase a product or develop a customer-specific payment link to attach to an invoice.

3. Send it to your customer

Once you generate the link, it’s time to send it to your customer. In the case of invoice payment links, this will involve including the payment link with your invoice.
You can send other payment links via SMS, email, customer support chats, social media posts, and more!

4. Track metrics and reconfigure the payment link

Likewise, the merchant can reconfigure the payment link at any time.
In this case, reconfiguration refers to turning off the payment link, setting an expiry date on the payment link, or changing the types of payment methods accepted via the link.

How to Use Payment Links for Creative Marketing

Payment links provide a ripe opportunity for creative marketing. Links provide a subtle yet direct method for including payment details in marketing campaigns. Let’s explore three examples of how payment links are valuable for creative marketing:

Include links in marketing materials

One way to use payment links for creative marketing is to include links in marketing materials. Whether it’s brochures, billboards, emails, or any other marketing channel, a payment link makes it easy for a customer to purchase a product or service immediately.

Payment links are handy for social media campaigns. Whether uploading a post on Instagram or creating a video for a Facebook ad, you can include payment links to simplify the conversion process.

Next-Gen Tech, Old-School Service

QR code links can be a valuable — even essential — tool for making it easy for customers to buy products or services at events. Suppose your business sponsors a tent at a local event. In that case, you can print QR codes onto your promotional materials to make it easy for customers to complete purchases or make donations.

Creating Customer-Friendly, Shareable Payment Links

As the primary goal of payment links is to provide convenience to your customers, making them as customer-friendly and shareable as possible is essential. Let’s explore five methods merchants can use to improve customer experience with payment links:

When people ask, “What is a payment link method?” they often refer to embedded social media payment links. Many leading social media platforms, including Facebook and Instagram, now offer payment links for eCommerce brands selling products or services on their platforms. Payment links simplify converting platform users to customers. For example, Instagram provides merchants with various in-app payment link opportunities. Additionally, merchants can request payments using Instagram payment links in Instagram chats with customers. This is a great way to request direct payments if you’re chatting to a customer about a product or service. You can explore all the payment link opportunities on your primary social media channels.

Using Payment Links in Emails and Text Messages

Payment links offer a convenient way to request payments through email by providing customers with a secure, one-click method to complete transactions. Instead of navigating multiple steps, customers can click the link and pay instantly. This streamlined approach is ideal for businesses managing remote billing or handling recurring payments.

Likewise, many businesses use SMS messages to send payment links. SMS payment links allow customers to pay for products or services quickly on their phones.

Did you know…

Centralizing all your payment tools ensures that your reporting data stays in one place, simplifying the process of tracking income and other key metrics.

Website and Blog Payment Links

Businesses can use payment links on websites and blogs as compelling calls-to-action (CTAs). Using payment links to facilitate a one-click payment process removes the hassle of checking out on your website. Insert the link on product pages, blogs, or other areas where you want to convert web visitors into paying customers.

In-Person Selling Payment Links

Payment links aren’t just for collecting payments from not-present customers; they’re also helpful for in-person selling. Whether you operate a restaurant, charity, market stall, or any other business requiring in-person customer interaction, payment links make conversions easier. QR codes are one of the most popular tools for in-person payments using payment links. By scanning a QR code with their phone, customers can instantly access the payment link, making paying for products or services quick and easy.

Customer Service Chat Payment Links

Payment links provide a unique opportunity to request customer payments in a customer service chat setting. If your business has customer support agents speaking with customers via a live chat service, transmitting a payment link offers customers a secure and convenient transaction option. Payment links eliminate the need for customers to share sensitive payment information directly with your staff.

Which Popular Payment Link Provider Best Fits Your Business

Many payment providers offer payment links to merchants. It’s not just traditional payment processors with payment link capabilities; various invoicing software, social media platforms, and more now offer payment links. Let’s explore three of the top payment link providers available to merchants:

Stripe

Stripe is one of the world’s leading digital payment providers. It offers a broad range of payment link features, making it simple to send links with multiple payment method options to customers. Merchants can create and send a link with just a few clicks. Customizing link features like branding, logos, and color schemes is simple. Likewise, you can adjust payment features, such as permitting promo codes or allowing customers to change product quantities during checkout.

While many of Stripe’s features require technical know-how, its payment links require no technical experience. In other words, distributing Stripe links via email, SMS, social media, and other marketing channels is streamlined and straightforward.

Stripe payment link processing rates

Merchants using Stripe to send payment links will pay the following processing rates:
2.9% + 30¢ per transaction for standard credit card payments (domestic)
2.6% + 30¢ per transaction or standard “Instant Bank Payments”

Square

Square, another leading payment service provider in the United States, makes generating and distributing payment links easy for merchants. Similar to Stripe, Square payment links offer a range of payment options, including credit cards, Apple Pay, Google Pay, and more (even Afterpay). Merchants can use Square payment links to accept payments for eCommerce purchases, deposits, recurring subscriptions, and more.

Square also makes it simple to distribute your links across multiple channels. Merchants can embed links into website buy buttons, distribute links via email, or even transform links into QR codes to print on physical promotional materials. Square simplifies the process of reaching your customers wherever they are.

Square payment link processing rates

Merchants using Square to send payment links will pay the following processing rates:
3.3% + 30¢ per transaction for standard credit card payments

PayPal

When consumers think of PayPal payment links, they often picture the simple, personal links PayPal allows users to create, making it easy for friends and family to send money. However, PayPal also offers merchants access to payment links and buttons, simplifying checkout. Log in to your PayPal Business account to generate a new link to access payment links and buttons.

Regarding features, PayPal offers less payment link versatility than Square and Stripe.

PayPal payment link processing rates

PayPay payment links processing is much less transparent, as it varies depending on the payment method and the reason for the payment.
Check the PayPal fees ^[4] PayPal. “PayPal Merchant Fees” Accessed on August 12th, 2025 on their site to see which processing rates apply to your payment link type.

Common Payment Link Cases and Examples

Below, let’s explore detailed examples of payment link use cases:

Payment link included on a digital invoice

One of the most popular payment link applications involves digital invoices. While digital invoices revolutionized how businesses invoice their customers, payment links have made the process even more convenient. Traditionally, invoices included payment instructions, such as bank details for ACH transfers or a phone number to complete an over-the-phone payment. With payment links, customers click the link and pay using a secure payment gateway, taking the hassle out of settling invoice balances.

Payment link for an overdue balance sent to a customer via SMS message

Businesses send payment links via SMS messages to request overdue payments. Instead of calling a customer to request a payment or sending an SMS with complex payment instructions, a payment link allows the customer to complete the payment in seconds. Many payment processors can automate this process, ensuring all overdue payments trigger a follow-up message with a payment link. This is an effective tool for settling outstanding balances.

Final Thoughts on Link Payments

With shoppers 63% more likely ^[5] CIO. “Consumers Want More Payment Flexibility In Their Shopping Experience” Accessed on August 12th, 2025 to shop at retailers offering their preferred payment method, providing multi-channel payment options is critical. Payment links are valuable for businesses to improve conversion rates and customer payment experience. Many of the world’s leading payment providers make it easy for businesses to create and distribute payment links. Merchants without technical payment experience have no issue generating payment links for SMS, email, social media campaigns, and more.

Choosing a trusted payment provider is critical to ensure your business benefits from all the advantages that payment links offer. And while Stripe, Square, and other payment service providers provide convenient payment link solutions to their merchants, they come at a high price. By partnering with a merchant account provider with payment links, your business can benefit from more affordable payment processing fees, better account stability, and dedicated account managers!

Frequently Asked Questions

Are payment links secure?

Yes, payment links are secure. When customers click a payment link, they are directed to a safe, encrypted payment gateway where they can input their credit card details to complete the transaction. However, as with any payment method, it’s critical to employ best practices to avoid security issues. This includes partnering with a security-focused payment processor, complying with PCI DSS, using anti-fraud software, and promptly notifying customers of any suspicious activity related to their payment.

Can payment links support various payment methods?

Yes, they do. The methods supported will vary depending on your payment processor. Many payment links support credit card payments, ACH transfers, digital wallets (such as Apple Pay and Google Pay), and more.

Are payment links reusable?

Some payment links are reusable. It’s possible to create both one-time and reusable payment links. One-time payment links are more appropriate if you want a customer to settle a specific balance, such as an invoice. On the other hand, if you’re not invoicing for a custom service or product, a reusable payment link might be more suitable, as you won’t need to set up multiple links to accept payments. For example, if a charity uses a QR code payment link on brochures to raise money, it’s preferable if multiple donors can use the same link.

Can payment links be customized?

Yes, many payment processors enable merchants to customize payment links. A merchant can design the checkout process by customizing a payment link to align with its branding. For example, a merchant may customize the payment gateway to include business logos, color schemes, and branding. Likewise, the merchant may customize the text associated with the payment link (this is particularly important for payment links sent via SMS).

What is the difference between an invoice and a payment link?

An invoice is a document provided by a merchant to a buyer outlining the details of goods and services provided. Likewise, an invoice has various payment details, such as the amount due, contact information, payment due date, and more. It’s a formal document for requesting payment from a buyer. On the other hand, a digital link redirects a buyer to a payment gateway, making it easy for customers to purchase goods and services. Many businesses now include digital payment links on their invoices to simplify settling customer balances. It’s a valuable tool for speeding up payments.

How many times can a customer make a payment via a payment link before it expires?

There is no official limit to how often a customer can pay via a payment link before it expires. Instead, the merchant can place limits or restrictions on payment links. If a merchant wants customers to be able to use the same payment link multiple times, they should avoid setting an expiry date for the link. Conversely, if they plan to restrict usage, they can create one-time payment links or links with specific limits to control how often customers can make payments.

Does a payment link expire?

Whether a payment link expires depends on restrictions set by the merchant. Merchants can configure payment links to meet specific payment limits or expiry dates. For example, some payment links are one-time and expire after the customer completes a payment. On the other hand, some payment links permit unlimited payments, so they don’t expire until the merchant turns the link off.

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