What Are the Best Ways to Pay Online Without a Credit Card?

Gone are the days of the credit card being one of the only payment options available when making an online purchase. While still a popular payment method worldwide, research indicates that digital wallets will likely overtake credit cards as a preferred online payment method by 2030. 

What’s driving the shift? For one, today’s consumers are actively looking for ways to pay online without linking a credit line or a traditional bank account. Some are after more security and privacy — while others, a stronger grip on their budgets. Factor the above (and more) with the rise of alternative payment infrastructure that does not rely on traditional credit or card-centric payment methods.

In this article, we’ll cover the major ways you can pay online without a credit card. We’ll compare each method’s strengths and limitations, and tell you why prepaid debit cards are often the most flexible option that checks every box.

Can You Pay Online Without Linking a Credit Card or Bank Account?

Yes, you can make an online payment without a credit card, and, in other instances, without even a bank account! Of course, whether your alternative payment method is accepted depends on the type of payment method you’re using and the merchant you’re paying.

Some payment methods are more ideal in certain cases, so it’s critical to know which works best when paying for X or Y. Consider the following factors and the payment methods that may work best, depending on your needs:

• Transaction speed (NFC/contactless cards, digital wallets)
• Security (digital wallets, prepaid debit cards, etc.)
• Flexibility (Buy-Now-Pay-Later [BNPL] payment plans)
• High-dollar purchase (ACH transfer)

Let’s put this into practice. An ACH/bank transfer may work best for a water bill or gym membership. Whereas digital wallets are often best when paying for in-app purchases, and more.

Why Many Consumers Want to Pay Online Without a Credit Card

More than 26% of Americans don’t have access to a credit card. Besides personal preference or budgetary restrictions and security concerns, this lack of access may be due to one or more of the following factors:

• Age
• Credit history
• Banking status
• Income level

Hence, access to alternative payment methods becomes essential rather than optional. As for the most common alternative payment methods to a credit card? Gift cards and bank transfers are popular, but let’s start with digital wallets.

Common Ways to Pay Online Without a Credit Card

Digital Wallets (PayPal, Apple Pay, Google Pay)

Think of a digital wallet as the middleman between your payment card and a merchant. In other words, you can pay online with your digital wallet (that contains your card details) without giving those card details directly to the merchant.

Depending on the digital wallet, users can potentially fund their digital wallet with one or more of the following payment methods:

• Prepaid debit cards
• Prepaid credit cards
• Stored balances
• Traditional debit cards
• Traditional credit cards
• Checking or savings accounts via ACH transfers
• Cryptocurrency
• Peer-to-Peer (P2P) transfers

Digital wallets are convenient to use and highly secure. Of course, e-wallet acceptance varies by merchant and could be a limited (or a no-go) payment method for certain subscription types.

Bank Transfers and ACH Payments

Direct bank transfers, aka wire transfers, and ACH payments allow customers to pay online by moving funds from a traditional checking or savings account to a merchant. Consumers will commonly use ACH payments to pay for:

• Utilities (e.g., electric bill, etc.)
• Gym memberships
• Rent or mortgage payments
• Subscription services
• High-dollar purchases

These payment methods, however, are inaccessible to unbanked consumers who must rely on cash for their purchases. While wire transfers and ACH payments are practical, they’re also less flexible than card-based payment methods.

Cryptocurrency Payments

Far from being a mainstream payment method, cryptocurrency is a niche digital payment method with a limited number of vendors accepting it. Those who accept crypto offer it as an option for customers who otherwise couldn’t pay with a bank account or payment card.

Some consumers prefer to use crypto for privacy and decentralization, knowing there is no banking authority/intermediary involved in the spending process. Crypto isn’t without its limitations, many of which raise an eyebrow even for the most savvy online spender. From requiring technical knowledge (e.g., about blockchains, etc.) to its high volatility and limited acceptance, crypto is a complex payment method for many consumers.

Gift Cards and Store Credit

Gift cards are a popular way to pay online or in person at a particular establishment or a chain of connected retailers. They’re also ideal for one-time or a limited number of purchases, rather than an ongoing, universal payment method. They may not be usable for recurring subscriptions either.

Prepaid Debit Cards

No credit card—no problem! Prepaid debit cards are versatile and widely accepted worldwide for in-person and online purchases, including subscriptions and more. They work like traditional debit cards, except they’re not connected to a bank account or line of credit, making them ideal for unbanked and underbanked consumers. For budget-conscious consumers who want maximum control over their spending, a prepaid debit card is a payment method that checks most boxes.

Why Prepaid Debit Cards Offer the Most Flexibility

Prepaid debit cards offer customers — especially unbanked and underbanked individuals — the most flexibility in our digital economy. This payment method is universally accepted in the same way as a traditional debit or credit card. At the same time, prepaid debit card holders enjoy the same level of control over their spending as any other credit card holder. 

Of course, cardholders can add their prepaid debit cards to a digital wallet, which can work seamlessly across e-commerce, providing equitable access to goods and services for all consumers.

Common Use Cases for an Unbanked or Prepaid Debit Card

Some of the popular ways consumers use a prepaid debit card include:

• Online shopping where credit cards are not preferred
• App stores for movie or digital content purchases
• Digital-first and recurring payments (e.g., music/online playlist subscriptions)
• Gaming/in-game purchases and gambling platforms
• Online subscriptions (e.g., streaming services, software tools, and educational platforms).

Paying for Online Subscriptions Without a Credit Card

You don’t need a credit card to pay for an online subscription. Many online subscription services accept prepaid debit cards, traditional debit cards, digital wallets, and more. Due to the nature of subscription payments (i.e., recurring payments), a card-based payment is ideal. 

Alternatively, prepaid debit cards are an ideal and reliable solution for online subscription payments. Not only do prepaid debit cards not require a credit check, but they also protect users from any risk of overdraft (and accompanying fees).

How Ready Credit Expands Access to Prepaid Online Payments

Digital payment methods have come a long way since credit cards entered the scene. Traditional credit cards or debit cards aren’t viable options for every consumer, though, especially those who prefer to pay with cash.

Ready Credit’s Cash-to-Card® Kiosks allow customers to convert physical cash into a prepaid debit card without requiring a bank account or credit history. These kiosks are a practical bridge, allowing cash-only customers to make purchases or pay for subscriptions online. Plus, physical businesses, campuses, public venues, and more can ensure payment inclusion, rather than risk losing cash-only or cash-preferred customers.