4 minute read
There is a lot to consider before adding a new payment option to your site. Different costs, set up requirements, and customer experiences can make it a challenge to decide which option is best for your store and customers.
But among the information surrounding ecommerce payments are some myths that you should be sure to avoid. This week we’re busting some of these myths.
Myth 1: It’s going to take too long to add
Ecommerce retailers tend to hesitate before making complicated or time consuming changes to their site, which is fair enough considering that not every company has a developer on staff and outsourcing these jobs can be expensive. Payment options can sometimes get caught in the cross fire when retailers dismiss them as being too costly and time consuming to implement.
But setting up a payment option can actually be incredibly easy. For retailers on ecommerce platforms such as Shopify or Magento, some payment options are pre-integrated, meaning you can be accepting new payments within 5 or 10 minutes. Even for custom sites, payment options that can provide a simple API will require relatively little of your development resources.
Myth 2: Customers don’t care about having another way to pay
Why go through all the trouble of setting up an additional payment option if customers don’t even care about having another way to pay? Well, truthfully, they do care.
Earlier in the year we conducted a survey of 1,500 online shoppers to learn about online shopper preferences and how payment options impact their shopping experience. One takeaway from the report was that online shoppers want more flexibility in how they pay. 26% of shoppers cited a lack of payment options as a common frustration when shopping online, and 16% have abandoned their cart because of a lack of payment options. Even more interesting is how 71% of online shoppers said that it’s either “very important” or “somewhat important” for retailers to provide more ways to pay than just a credit card.
Myth 3: All payment options are basically the same
Similar to Myth 2, why bother adding an additional payment option when they are all more or less the same? In reality, the user experience is one of the biggest differentiators between different payment options.
Paying is part of the customer experience, and an important part at that. In fact, 46.1% of cart abandonments occur at the payment stage. Different payment options can have drastically different customer experiences, and these experiences impact conversion rate and even average order value.
For instance, mobile shopping has increased in popularity over the past few years however mobile conversions have lagged behind desktop. Part of the reason for this is because most payment methods aren’t made for mobile shoppers, requiring them to fill out several form fields across multiple pages in order to check out. Alternatively, some payment options are made with mobile shoppers in mind, and make it easier for customers to check out on a small screen.
Having an instant credit or point of purchase financing option is another important consideration for ecommerce retailers. Our study found that 15% of shoppers have avoided making a large purchase online because they weren’t offered a financing option. Moreover, 56% of shoppers would be more likely to make a big ticket purchase online if they could break their purchase up into monthly payments.
There are a lot of factors to consider before choosing an additional payment option for your ecommerce site. But don’t let these myths cloud your judgement. A new payment option can be set up quickly, help you capture more customers, and give your customers more reasons to shop with you.