The eCommerce sector has been booming in recent years, and with it, the number of payment options has gone through the roof. The days when an eCommerce business can simply offer just one payment gateway are long over, as customers get increasingly used to a wide array of options to pay online. From traditional methods such as credit cards to e-wallets like PayPal, every user now has their own preferred way of making payments on the web. If your eCommerce business fails to offer the right selection of payment methods, you run the risk of losing business. These are some of the reasons why it’s essential for your eCommerce business to offer a variety of online payment options.
Today’s customers want choice
The number of payment options available online increases continuously. The most common payment methods include:
- debit and credit cards (e.g. Visa and MasterCard)
- digital wallets (e.g. PayPal and Apple Pay)
- buy now, pay later options (e.g. PayPal’s Pay in 4 and Klarna)
- cryptocurrencies (e.g. Bitcoin and Ethereum)
Customers have their own individual preferred forms of payment, and they want to see a variety of options when paying online. If you only offer one payment method, you will risk preventing customers from buying if their preferred method is not presented. To avoid this, make sure to pick the right types of payment options for your target audience. Market research to understand your customers’ needs may be helpful here, as these differ from country to country and depending on what products or services you offer.
While essentially every business should offer credit card payments on their website, there are a few payment options that are especially suitable for certain industries. For instance, PayPal started out as a payment option on eBay and has since become dominant in online shops. The prevalence of PayPal and its more than 400 million users show that PayPal is a must-have for most online shops. However, other industries have different needs, making other payment options more prevalent. For instance, users who like to play traditional games online will often opt for other payment options. The payment providers Skrill and Neteller have specialized in the iGaming field, offering quick and safe deposits and payouts for players. Many of the best-rated Canadian real money casinos that allow users to place real money on their games such as slots and table games, therefore, offer those e-wallets on their sites, among other payment options. If, however, you own a tech business and tech-savvy early adopters are your target group, offering modern payment methods such as cryptocurrencies on top of the traditional ones could set you apart.
Reduce friction for a seamless shopping experience
Making a purchasing process as seamless and frictionless as possible directly translates into more sales. Offering a variety of payment options doesn’t just increase the chances you have the one available your customer prefers, it will also create an overall better experience. This in turn can help win a returning customer.
If shoppers find their preferred payment method, you offer them a greater sense of convenience. Once they see their favourite option at checkout, they can breeze through the payment process quickly and easily. This doesn’t just reduce the number of cart abandonments, but will also generate a better customer journey. Apart from convenience, a variety of payment options also offers more security for your customers and increases your trustworthiness. Many customers are not comfortable using any type of payment method and will only use the one with certain security features. If you offer several options, you can meet your customers’ security standards and help them feel comfortable and safe making a purchase on your site.
Mobile First: More people shop on their phones
As more people around the world own smartphones, the number of online purchases made via mobile devices has increased tremendously. According to Statista, mobile commerce already accounts for almost 73 % of all eCommerce in the world, which means almost three-quarters of online purchases happen via smartphones. While shoppers can use traditional payment methods on their phones as well, it might be beneficial to offer mobile-specific payment options for your customers to allow for a seamless mobile shopping experience. Mobile payment options such as Apple Pay and Google Pay are especially popular and let users pay with their thumbprint or via facial recognition within seconds. If you know your customers access your products via their phones, offering these mobile-specific payment options can boost your business.
Picking payment options for your business is not as straightforward anymore in today’s digital age. To help you find the right payment options for your business and learn more about payments, there is a variety of payment podcasts available, which offer great insights into the subject. Today’s customers are looking for choice, convenience, and security – you can give them exactly that by offering a variety of payment options.