How diverse payment methods impact sales
In a cashless economy, consumers expect to have a choice in how they will be able to pay online, and with so many types of payment methods available, there’s no need to depend on only a single payment provider. More payment options mean more opportunities for customers to make payments, making it beneficial for both customers and businesses and vital to remaining competitive.
Let’s unpack the importance of incorporating different payment methods and how it could help give your e-commerce a boost.
How payment options affect sales
The goal of any e-commerce merchant is to have purchase follow-through; that’s to say you want the customer to add to cart, check out and complete the sale. However, shopping cart abandonment is a challenge that all online retailers face, and while you can’t eliminate it, you can be proactive in optimising the process to prevent it from happening.
There could be many reasons for cart abandonment, but specifically, the lack of a desirable payment option makes it inconvenient for a shopper and complicates the checkout process. This could be discouraging and lead to them leaving the site altogether or deterring them from purchasing from you in the future.
Offering several payment options removes the obstacles between a shopper and a sale.
Benefits of multiple payment methods
Incorporating various payment methods could result in the following:
- Increased conversions: Catering to your customers’ preferences makes it as convenient as possible and also appeals to a wider customer base by opening your business to different markets and demographics.
- A smooth checkout process: Removing friction points and payment barriers for the customer makes payment easier and faster and lessens the chance for cart abandonment.
- Improved customer experience: A happy customer is a returning customer, and hassle-free purchasing makes it more likely that a customer will buy from you again.
- Increased customer satisfaction: Providing payment options that cater to the needs of a variety of customers adds an element of understanding and is accommodating, which could be beneficial for future purchases.
- Brand credibility: By offering a variety of payment options, your business is more likely to meet the latest security standards and features. This will also put the customer at ease and create a more comfortable shopping experience.
Options for e-commerce payment methods
Customers have strong preferences of how they’d like to pay, and if their preferred method is presented, it could be the deciding factor for a completed purchase. To reduce the possibility of cart abandonment and to maximise your conversions, offer a range of payment methods, such as:
- Traditional card payments, such as credit card and debit card, since they are widely accepted and used
- EFT provides a reassurance that your account details won’t be stolen and the money is guaranteed to arrive
- E-wallets such as Masterpass or SnapScan that allow customers to make payments quickly and easily without having to enter their card details
- Cash on delivery appeals to certain customers for the purchasing of specific products or if they don’t have access to online payment methods, and it takes away any risk of online payment fraud
- Loyalty and rewards programmes allow customers to pay using accumulated points or cash back
- Digital merchant solutions such as SimplyBlu, Agent Assist and Quick Bills combine the convenience of digital with various traditional payment methods to support businesses by giving their customers the confidence to pay in their preferred manor.
Key takeaway: Let your customers decide. Offering multiple payment options benefits customers and companies, creating an easier, faster and more secure purchasing process, lowering shopping cart abandonment rate and increasing conversions.