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Expand Your eCommerce Business by Offering Newer Payment Options

June 11, 2018

Expand Your eCommerce Business by Offering Newer Payment Options

The e-commerce landscape is changing drastically. According to the latest trends, when it comes to the entire shopping experience, customers are looking for flexibility and convenience. With regard to that, the payment function online is very troublesome. Most of the customers will cancel their purchases if their favorite payment option is not available.

According to a survey by YouGov, more than 40% of the participants said that they feel more comfortable if the web store they have chosen offers multiple gateways and different modes of payment. E-Commerce sites are offering more and more payment options. With digital wallets and contactless & mobile payment options, people are looking for credit card alternatives.

In order to maintain a higher conversion rate, you need to be aware of the growing demand of customers for better alternatives and inclusion of popular methods of payments. Because of the diversity of demographics and the choices available, people have developed biases against particular modes of payment – and it can either be a credit card or a particular digital wallet.

Here are a few necessary things to take care of when offering payment options:

Make it convenient, simple and easy
Convenience is the key when it comes to choosing the mode of payment. Many people abandon the effort when they reach the Shopping Cart because an e-commerce web-store doesn’t provide them with the required payment options. Customers get impatient and demand better service and ease of use. So, if you provide additional modes of payment, you make the life of your customer easy.

Bring in a touch of professionalism
If you take customer psychology into consideration, you will find that that web stores that provide multiple modes of payment look more professional, reliable and worthy of endorsement.

Capture an international audience
With lots of choices available, you will do better to have an eye on international customers who have to use different modes of payment according to their personal and local preferences. Forget about countries, sometimes even different regions in a country have different preferences.

Create loyal customers
customer frustration is not just about preferred modes of payment. Transaction failures are also responsible for customers looking for alternatives. Sometimes, they get frustrated when they choose a particular mode of payment and the transaction fails repeatedly. Even customer support is not able to address these issues immediately and the entire experience may result into customer leaving your site and going to your competition.

According to the research firm, Bain and Company, if you increase the rate of customer retention by 5%, you are definitely heading towards increasing your profits by more than 95%. So, give your customers a wide range of options, so that in case of transaction failure, you can still divert them to another mode of payment and save their purchase.

Choose the right option between Integrated and hosted gateways
Again, there are two types of payment gateways:

  1. Integrated gateways
    With integrated gateways, the customer performs the entire checkout process on your website without being redirected to the third-party website. It offers them the smoothest experience, but it can be less secure. In this case, the responsibility of maintaining security lies on you as the service provider. Make sure that you are PCI compliant, so that the payment process taking place on your website is safe and secure.
  2. Hosted gateway
    When you redirect a customer to a hosted gateway, they are being directed to a third-party website which takes care of the customer’s transaction. In this case, customer experience might suffer. It is not as smooth as the first option, but in this case, you need not worry about the security issues as the responsibility of maintaining security lies with the third-party website. If you are a startup and have a low budget, you can go for this option, because to ensure security you need to invest heavily.

 
Therefore, payment gateways play an important role in customer retention and customer experience. Make sure that you provide enough payment options to your customers, so that they love the entire experience on your site and, especially when they are making their payment. It will ensure less customer loss or abandonment at the shopping cart and increased customer loyalty.


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