Most of the businesses nowadays have gone fully digital, which means that along with operating in the online world, they also function electronically. In simple terms, online transactions have become popular, and eCommerce businesses should be able to adequately handle any means of electronic payments.
Basically, it’s about providing convenience to shoppers. The trend of online shopping has brought forth numerous payment methods. Credit or debit cards are the most commonly used means of electronic payment. But there are other methods too that does not include card payments like APMs (Alternative Payment Methods). Both these methods of payments have grown in popularity and usage across the world of eCommerce.
The use of APMs is expected to encompass 55% of overall eCommerce payments in 2019. Now, you all must be thinking, why are payment methods so essential for the conversion rate of a company? As already mentioned, it’s about convenience. Accordingly, we will try to give you all a key to your question about how payment methods can affect your conversion rates.
Let’s begin with understanding the link between conversions and payment methods.
Creating a smooth shopping experience for the buyers is easier said than done. So, ensuring the seamless customer experience is a must for all types of businesses that operate online.
Being able to meet the needs, demands, and expectations of a customer plays an influential role in the success of a company in the market. Therefore, the focus must be on, meeting customers’ needs, when talking about, payment methods.
In fact, the rate of cart abandonment across several businesses on a global scale is 74.2%. There are numerous reasons for discarded shopping carts, lack of payment options being one of them. Consumers tend to suspend proceeding to purchase if they fail to see their preferred payment option on the checkout page.
Available Payment Methods
There are over 200 payment methods available that can be enforced by businesses handling electronic payments and online transactions. For instance, some APMs cover bank transfers, direct debit, e-invoices, digital wallets, digital currencies, and so on. Taking this into account, customers usually have only one or two preferred payment methods.
In short, you don’t have to apply every method to guarantee your customers will make a purchase. Rather, you must implement methods your consumers use most commonly.
Moreover, some methods of payment are incorporated into a single solution, like an ACH payment, for example. In this way, every customer’s favored payment method that withstands an Automated Clearing House (ACH) network, like direct deposit, bill deposit, peer-to-peer transaction, and many more, can be combined into a single payment solution.
Depending upon where your business primarily operates, it’s essential to support the local economy by giving the most preferred type of payment method. PayPal is a default method providing an initial integration and solution. PayPal also offers forefront encryption and high-level protection from fraud. However, there is a wide range of alternatives to PayPal, comprising the same solution and much more, like:
Klarna – Offers ‘buy now pay later’ purchase model to the customers. It gives assistance to your customers to go through the checkout smoothly, granting them flexible payment alternatives, at zero risks to the merchant.
Affirm – Provides precise, easy, and on the spot funding for online shopping. Also, it does not charge any late fees, prepayment fees, service fees, or have any other hidden fees. Not only that, Affirm’s simple to access mobile app enables you to maintain your account and carry out payments on the go.
Google Pay – Google Pay is one of the most reasonable services on the list, as it is exempted from any charges to use debit cards or execute bank transfers. Although you will have to pay a 2.9% fee for using credit cards. Its integration with other Google services is what sets Google Pay apart from the rest of the payment gateways.
In Gmail, for example, you can request payment simply by clicking the little dollar symbol in the toolbar under a message. You can transfer money through Android Messages which will show up in Google Pay. Or you can use Google Home to send over money to a fellow through Google Pay. And if you want to use the actual Google Pay app, then sending money is as easy as clicking on the option and filling your recipient’s phone number or email address.
Amazon Pay – allows the customers to pay directly via an Amazon account, resulting in increased sales and reduced checkout time. The gateway uses widgets helping the customers pick suitable shipping methods and payment options without leaving your store. Also, it features the same deceit protection system as Amazon.com. It is the quickest and most simple option for the customers to make payments utilizing their Amazon details.
Apple Pay – The first of the latest mobile payment solutions that employ NFC (Near-field communication) to securely and wirelessly transmit your payment data to the POS and online through various mobile apps, along with keeping safe your personal information such as name, number, and address.
Braintree – A PayPal owned payment gateway that provides support for national and international businesses. It offers six different types of payment methods including Apple Pay, Bitcoin, and Venmo. Braintree offers in-built PayPal integration, protection from fraud, and data storage.
These are some of the popular payment gateways you can employ to optimize your checkout page. Several major payment processing solutions give multiple types of payment approval. To begin with, ensure that the top four main credit cards, i.e., Visa, American Express, Mastercard, and Discover, are accepted. Furthermore, many platforms offer approval in the form of an eCheck, digital wallet transfer, cryptocurrency, and many more.
And if your business is looking to serve overseas, then ensure you get a payment provider who offers optimized international payments. If you can process seamlessly in different countries, then conversions can even pass through the roof!
Implementing Multiple Payment Options
As mentioned earlier, you don’t have to employ every payment method possible on your checkout page. Alternatively, you should conduct some study to discover the most preferred methods of payment for the market or a country you’re targeting. In this way, you can apply the most appropriate payment options for your business.
You can quickly increase your conversion rate by optimizing more payment methods favored by your consumers. In fact, having the top 3 most used payment options accessible can boost your sales by up to 71%.
In short, multiple payment methods are essential to your customers, giving them overall satisfaction. By enforcing the appropriate method of payment, you can provide convenience to customers along with preventing cart abandonment and ensuring your shoppers complete their purchases.
Optimizing Your Checkout Page
Even if you’ve executed multiple payment options, it doesn’t ensure that your customers will certainly go through the purchase. Although, multiple payment choices play an essential role in inspiring customers to seal the deal if your checkout page is properly, optimized. As previously mentioned, there are numerous causes why buyers will forfeit their purchasing carts. For example, some reasons include:
- Extra additional costs, 55%.
- Being obligated to create an account, 34%.
- Complicated and time taking checkout process, 26%.
- Website errors, 17%.
- Lack of security, 17%.
Taking this into account, optimizing your checkout process should be a priority apart from applying multiple payment alternatives. Hence, assure that your website is secure, fast, and functional, besides being responsive for mobile users. Moreover, avoid bothering your customers with unnecessary account creations and complicated checkout methods. Above all, ensure the proper security of your customers, making them feel secure while sharing their sensitive information on your website.
Payment options give convenience and seamless experience to consumers when it comes to online shopping. Businesses that provide suitable payment choices to their customers successfully gain the trust of their consumers and guarantee that shoppers will not leave without making a purchase but will also come back for repeat business.