Photo credit: Sean MacEntee
Did you know that 50% of regular shoppers would cancel their purchases if their preferred payment method was not available? In addition, according to a survey by YouGov, 40% said they would feel more comfortable purchasing from an online merchant who offers multiple payment gateways.
Many online merchants lack alternative payment methods. The increasing number of buyers seeking different payment options when online shopping means it’s more important to address this issue. Since the checkout can make or break a customer’s user experience, it is critical for you to integrate the best and most popular payment options.
In this post, we’ll look at how having multiple payment options is not just desirable for your customers, it can actually be a vital factor in growing your online business.
There are more and more payment alternatives being introduced and an increasing demand to cater to these options—some of which are credit card alternatives. Many users like the option of having different methods of payment, which is the reason why this often leads to higher conversions and sales.
Many people have biases towards one or another and you will be able to take into account their needs.
Having multiple payment gateways provide more convenience to your customers, which will prevent shopping cart abandonment. By offering different online payment processing options, you make your customer’s life easier.
Many payment gateways give customers the option to shop using their smartphones, further adding to the flexibility.
Offering multiple payment options will make your online store look professional and reliable. How often have you seen notable companies with only one method of payment?
Consumers want to know that they are being served by a safe and secure merchant. That is why established business are perceived as dependable. Customers will feel more secure when purchasing at your online store if you appear legitimate.
Certain payment gateways are only offered to specific countries and currencies. Having these different options will appeal to a global audience and allow you to deal with multiple currencies. This will help you increase audience reach and expand your business across continents. Certain countries have payment preferences based on region, so you can integrate payment gateways based on where you primary audience is located.
Many merchants know the frustration when accepting online payments. Failed transactions are a significant issue that leads to loss of sales and wasted time on customer support. Not offering a payment option that the customer favors or feels comfortable with may lead them to abandon their shopping cart and look for alternative merchants—your competitors.
There are statistics supporting the fact that providing multiple payment options leads to an increased conversion rate. With more payment options, it’s more likely for your customers to complete the purchase and come back in the future.
After all, according to research from Bain & Company, increasing customer retention rates by 5% can increase profits up to 95%.
Enabling your customers to pay through specialized payment solutions will help you to maximize success by catering to their wants and increasing your company’s conversion rate.
What Are Your Options?
There is a multitude of options out there from those that support a wide range of countries to those that specifically cater to one or two. When choosing which one to integrate into your website, you want to check whether they match your needs:
- Is the payment gateway available on your eCommerce platform?
- Do they accept your store’s currencies?
- Do they work in your store’s base location?
- How long is the contract? Some payment gateways lock you in with lengthy contracts. This can be a problem if you discover that they don’t quite meet expectations. Others operate on a monthly rolling contract. Make sure you understand what the terms are.
- What are their fees like? There is typically a small transaction fee for every order. This fee may decrease as your volume grows, with cheaper rates offered to businesses doing a large number of transactions.
- How secure is the payment gateway?
Generally, there are two types of payment gateways: integrated and hosted gateways.
For integrated gateways, customers will perform the checkout on your website, which is important for some businesses. This is the smoothest checkout experience for customers, however, it is also the least secure. This means that you will have to take extra security precautions to maintain PCI compliant.
The other option is to redirect customers to a hosted page where security requirements are handled externally. It’s not as smooth an option as the prior, but this way you won’t have to handle security requirements yourself. For smaller companies, without the resources to make sure security is in check, this may be the way to go.
Payment gateways play an important role in online shopping. People like options and control in any situation. Offering only one method of payment may prevent you from maximizing your sales and revenue, thus increasing your cart abandonment and decreasing the likelihood of making sales.
Square, Amazon Payments, Google Play, iTunes, and Apple Pay — if you are using these payment platforms, we’d love to help you get all the analytics you need on one dashboard.
Control offers key payment analytics and customer intelligence to help you grow your business. Try it today for free!