Make More Sales With More E-commerce Payment Options

How e-commerce payment options help businesses make more sales

Providing more payment options for consumers offers your business the following benefits:

• Higher conversion rates: Customers are likely to complete their purchases when they are able to use a payment method convenient to them. Offering a variety of payment options means more shoppers will be able to complete purchases with your business. 
• Reduced cart abandonment: If customers hit a speed bump at checkout – for example, they don’t have their credit card handy and your site doesn’t accept PayPal – they may abandon their purchase entirely. You could lose a ready-and-willing customer by limiting your e-commerce payment options. 
• Improved customer experience: Having a quick, easy and secure checkout is one of the biggest ways to give customers a pleasant experience on your website and help ensure they return for future purchases.
• Increased website visibility and traffic: Offering multiple payment options lends credibility to your site and can boost it in search results, bringing more eyes and conversions to your business.
• Stronger customer loyalty: After having a positive experience shopping on your site and using their preferred payment method, customers are more likely to return to your business or recommend it to others.

How to identify customers’ preferred e-commerce payment methods

Not all payment methods are created equally, so you should tailor your options to both your business needs and your customer base. Consider the following factors when selecting payment methods:

• Demographics: Age and income can play a major role in what payment methods people prefer. If you have an older, more financially established customer base, you should include credit card options like American Express. For younger customers, consider methods like PayPal and payment plans.
• Location: Figure out the most popular payment methods in the countries where your customers live. The options preferred in the U.S. aren’t necessarily the most popular ones overseas. 
• Security and fraud prevention: Offer third-party payment options like PayPal or digital wallets so that customers don’t need to enter their information directly into your site. For additional security, some payment options offer data encryption. 
• Compatibility with your e-commerce platform: The setup process for some payment options will take more work than others. Find out what payment methods are possible with your e-commerce platform, and consider payment providers to make the process easier for your business. [Read related article: Open for Business: 5 Options for Setting Up an Online Store]

The top payment options for e-commerce businesses

Debit and credit cards

Consumers view debit and credit card payment options as a necessity in the online shopping space due to their ubiquity and convenience. Cards like Visa and Mastercard are the most popular, but it is also worth considering American Express and Discover. 

Digital wallets

Third-party digital wallets, such as Google Pay and Apple Pay, continue to gain traction. Digital wallets provide an extra step of security, since users don’t need to directly share their financial information on the internet.

Electronic funds transfers (EFTs)

Bank transfers and direct debits allow customers to send their funds directly from their account to your business’s bank account. A common EFT solution is the Intuit Payment Network, which can be set up as an e-commerce button on your website. Since this type of payment is most popular in Europe and Asia, this option can be particularly beneficial for businesses with an international customer base.

Payment links/QR codes

This payment option allows you to branch out to different platforms, including social media. Customers can shop and pay by simply scanning the code or clicking the link, without having to directly visit or navigate your website.

Alternative payment methods

• Cryptocurrency: Although there is still uncertainty about the long-term price stability of Bitcoin and other cryptocurrency, it is one of the cheapest and fastest ways to transfer payments around the globe. Implementing Bitcoin on your e-commerce website could attract younger, tech-savvy customers.
• E-commerce financing: Online stores can use this “buy now and pay later” method for promotions and sales events, and may be able to sell more inventory thanks to easy financing terms.

Alexandra Tachalova contributed to this article.