eCommerce is now one of the most successful industries online. Its boom was already significant for some time, but after the pandemic, the production and manufacturing of yields meant to be sold in online shops experienced a surge. That’s because it is now more convenient for customers worldwide to shop online, as the product ecosystem is pretty developed.
As the sector developed, so did payment methods. Luckily, customers can now choose from numerous ways of purchasing their favorite products, from bank transfers, to mobile payments, and cryptocurrencies like Bitcoin.
Expanding these payment methods is advantageous for clients and the company because it allows global reach to diverse audiences, increasing sales and improving brand image. At the same time, it helps the business have access to more improvement and collaboration opportunities for the future.
Here are some payment methods you should consider incorporating into your eCommerce organization.
Credit and debit cards are paramount for all kinds of customers
While it may seem obvious that as an e-commerce business, you have credit and debit card options provided, some shops still operate with cash on delivery. While this choice isn’t necessarily a wrong decision, it must be enabled in accordance with credit and debit card usage for specific countries and areas.
If you notice that most of your customers come from developed areas, where credit and debit cards are frequently used in all purchases, including this option rather than only cash payments would be best. At the same time, developing countries might rely more on cash, so it’s best to look into it before deciding.
Digital wallets are as popular as credit and debit cards
Digital wallets are linked with people’s smartphone accounts, so Apple Pay and Google Pay are the most common options, but there’s also PayPal. Similar to the case of credit and debit cards, research what type of digital wallet is used in your region and then provide it.
These cards allow fast payments, and their information is securely maintained within their devices. Moreover, these wallets have small to zero transaction fees, offering you a competitive advantage over other businesses. This also makes international transactions easier to perform.
Buy now, pay later ―a saving option against inflation
Unfortunately, many customers face inflation challenges, a supposed recession and other economic risks, preventing them from purchasing even basic and essential products. So, let’s say that your business offers furniture or home appliances. In this case, enabling the option for buying now and paying later will surely increase the number of loyal customers.
Although it’s common for this option to have interest or fees for the delayed payment, it’s still better than paying upfront because it allows people to have a safe net of their finances while buying necessary things.
Cryptocurrency for tech-savvy customers
At the same time, there are customers who choose to invest in crypto to ensure an increased level of financial security for the future, allowing them to leverage these assets in online payments. Providing payment channels for cryptocurrency may be more complex, but it will surely attract more clients.
For example, if your e-commerce business sells mainly tech products, the promising target audience is usually more tech-savvy or involved in investments. Of course, you have to research this depending on the area, too, but at a closer look at who buys your product the most, you can tell what the target audience likes.
Deciding what payment option is best for your e-commerce site
There are plenty of details to consider when you want to introduce more payment options. While you cannot trust trends entirely, sometimes it’s best to see what others are doing and try to adopt their practices. The competition’s options can sometimes show you what’s best for your business.
However, you have to be considerate of a few aspects to decide what payment methods will leverage high returns, such as the following:
- What are your customers’ preferences? If you conduct thorough market research, you may be able to find the key to your problem simply by asking customers what other payment methods they prefer;
- What are the transaction fees proposed for each purchasing option? Payment methods have different costs that you and the customer will sustain. Some of them are disadvantageous for business, such as credit cards that usually have higher fees compared to other options;
- What payment methods are compatible with your platform? If you want to provide customers with the best services, it would be best to choose payment options that don’t make your website slower, as well as require considerable integration costs;
- Which payment options are most secure? Choose to introduce payment opportunities whose fraud prevention is best because if you add methods that are not safe, you might be exposed to data breaches, which have significant consequences for a company;
Making your business successful with multiple payment options
Multiple payment methods have various benefits to an e-commerce business, including the following:
- An improved customer experience, where fewer customers abandon their carts and finalize their checkout;
- Higher conversion rates due to customers finding their preferred option at checkout;
- Increased customer loyalty is linked with a growing brand trust. Payment methods that don’t require too much personal data and are on-brand will encourage clients to shop again from a company;
On the other hand, if you choose to implement fewer payment methods, your e-commerce business might lose customers and revenue in the long run. For your company to maintain stable revenue levels, it would be best to have at least the top three most used techniques, like mobile wallets, credit and debit cards, and bank transfers.
Depending on what your e-commerce is selling and your target audience, the payment method that you introduce will significantly impact your income. That’s because different clients prefer paying in diverse ways, from cash to credit, which is why you need to consider their preferences before yours and provide them with a well-made platform that supports multiple payment options so that your e-commerce company can thrive.