It may seem apparent that modern consumers are all about paying with their credit cards. But according to a Bizrate Insights study and contrary to popular belief, additional ecommerce payment solutions such as PayPal are disrupting the industry landscape and are used almost as often as plastic money. PayPal's own research reveals that 32 percent of millennials use its services, and 25 percent of them prefer to use it over other options for sending and receiving money. Furthermore, 67 percent of millennials and 56 percent of Gen X spenders prefer to buy on ecommerce sites rather than in stores.
These data points demonstrate a need for multiple ecommerce payment methods. For ecommerce companies, customer convenience must be a priority, and how you handle and process payments affects not only your customer's experience, but your business's overall success.
Your customers have unique payment needs.
There are different aspects to consider when choosing an ecommerce payment system for your website. Among the most important are your customers' ages, the countries they live in, and your security and fraud prevention efforts.
Providing your customers with a great shopping experience depends partly on their age. If your target audience is in the older, high-income bracket, for example, they are a lot more acquainted with using their American Express credit card. Including it as a payment option may help your senior shoppers feel more comfortable buying from you. On the other hand, if your audience is younger, PayPal will help increase purchases and customer satisfaction.
Research which type of payment is the most popular in the country where you sell your products. Pulling out the plastic, so to speak, varies significantly from one country to another. It may be the most popular ecommerce payment option in the U.S., Canada, Brazil and China, but credit cards are used less often in Japan, Germany, Russia and the U.K.
Security and fraud prevention
People are not going to hand over sensitive financial information to a website they're not sure they can trust. That's why you need a gateway that's trustworthy and legitimate to provide a safe checkout experience. For additional security, some ecommerce payment options offer data encryption, which helps you meet certain online security standards.
Give your customers the payment options they need.
When it comes to ecommerce payment methods, the more, the merrier. After all, consumers are likely to abandon their carts if their preferred payment method isn't available. By equipping your site with a payment gateway that includes an array of payment methods, you give your business more opportunities to gain sales.
Debit and credit cards
Paying with a debit or credit card is a standard option, and for the majority of online shoppers, it is an expected ecommerce payment option. Visa holds the biggest market share across the globe, followed by MasterCard, American Express and then Discover.
Online payment gateways
Payment gateways are a service that acts as a sort of liaison to process information at checkout and authorize payments made to e-businesses. Their major advantage is securing sensitive data, such as credit card numbers, and streamlining the processing of information on your end, which helps eliminate manual input.
- Amazon Payments is an API-driven gateway, allowing for complete integration into your site's interface; it's just like adding a plugin. Transactions are finalized on your site, and it's available across multiple devices.
- PayPal is a veteran in ecommerce and one of the most commonly accepted online payment methods in North America. It offers fraud protection, 24-hour support and cart flexibility. It's compatible with all major ecommerce platforms. PayPal does not have monthly charges, nor does it have setup expenses or gateway fees.
- 2Checkout offers deeply customizable onsite checkouts and a seamless shopping experience. Its key features are a demo of a checkout, support for different languages, and a sandbox feature that links you to the marketplaces.
Cash on delivery
In the U.S., cash on delivery (COD) is a payment processing service that's rarely used; however, COD rules supreme in Eastern Europe and India, as well as in many other places in the world. To enable its use, you have to use a courier service that takes cash and will issue you a check showing the value of the goods you ship. FedEx is the best bet because it accepts cash, unlike other couriers that only take checks and money orders.
We live a technology-driven world. To better serve your customers, you have to keep up with their technological demands.
- Bitcoin made a lot of waves in 2018. While there is still uncertainty about its long-term price stability, it is inarguably one of the cheapest and fastest ways to transfer payments around the globe. Implementing Bitcoin on your ecommerce website can potentially attract a highly educated, tech-savvy customer base. A platform like BitPay can help you to integrate payments with Bitcoin.
- The Intuit Payment Network is a bank-to-bank electronic funds transfer solution that also allows you to create an ecommerce button on your website. For businesses that have intensive invoicing and accounting activity, Intuit features simple integration with QuickBooks. It transfers money directly to the business's bank account.
- Ecommerce financing, also known as "buy now and pay later," is gaining more traction. It can increase online sales and order sizes because ecommerce financing gives customers the opportunity to shop now and pay later. Online stores can use this method for promotions and sales events, and may be able to sell more inventory thanks to easy financing terms.
Ecommerce payment options help businesses make more sales.
Regardless of what kind of ecommerce payment solution you decide to use, it's critical to offer multiple methods that reflect your customers' demands. If you decide to sell to an international market, you need to research the top payment methods in your target markets and adapt your site to accommodate them.
After all, completing a payment should be the easiest part of your customer's journey. Try to make it as fast and straightforward as possible for them.