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Online payment options are more than just what you pay with, they’re how you pay. And that’s a big difference. Rather than thinking of payment systems as simply what the customer takes out of their wallet, consider how they impact the user experience. In many ways, payment methods dictate the checkout flow and are the last hurdle separating happy customers from an abandoned cart.
One major difference between various payment options is the amount of time it takes to checkout. Considering that slow checkouts cost retailers billions of dollars in lost sales every year, checkout speed is clearly an important aspect of online shopping.
Check out speed is important for a number of reasons:
- 21% of consumers will abandon a cart that is taking too long to complete
- An additional 1 second delay decreases customer satisfaction by around 16%
One way that retailers can improve their checkout speed is by providing customers with a simple and streamlined way to buy online. Retailers can offer customers credit card and PayPal alternatives that reduce the amount of time it takes to check out and help to get more shoppers to your “Thank You” page. Another way that retailers can speed up their checkout is by saving customer billing information and making it easy for shoppers make subsequent purchases.
Little highlights the significance of differences in payment experience like checking out on a mobile device. Long checkout forms, 16-digit credit card numbers, and a half-dozen pages creates a substantial amount of friction for mobile shoppers. This has been a major contributor for why mobile conversion rates consistently lag behind desktop. But retailers can change that. By providing shoppers with a mobile friendly way to pay, which reduces the number of pages and form fields, retailers can help to capture the mobile shoppers that are annoyed by a lengthy checkout and typing on small screen.
But don’t think of mobile shoppers and desktop shoppers as distinct. There are a number of instances where someone that typically shops on a desktop may prefer to make a mobile payment. Whether it’s for the sake of convenience or security, any one shopper could need a variety of different payment solutions.
Another consideration for how different payment services have different experiences is how they cater to various shopper types. Generally speaking, your customers are going to fall into one of a few categories of shoppers, such as convenience-oriented shoppers, budget-focused shoppers, or experiential shoppers.
For example, your budget focused shoppers might be hesitant to use their credit card as they look to avoid high APRs. Retailers can cater to these types of shoppers by accepting a payment method that lets customers shop online without a credit card. On the other hand, you can appeal to convenience oriented shoppers by having a quick and easy way to pay online.
Local Online Payment Option
A consideration for retailers that sell to multiple countries is the importance of having a local payment option that customers from different countries will recognize. Even if you accept a global payment method such as Visa, having a local payment method has been shown to make shoppers feel more comfortable and even increase conversion rate around 15 to 20%.
Some examples of popular online payment services from around the world include AliPay in China, Qiwi in Russia, iDeal in Germany, and Paymate in Australia.
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