How Payment Options Can Increase Sales

clockicon 4 Minute read

FuturePay Payment Options

 

Payment options are an important element of checkout optimization. That said, there isn’t an industry standard or best practice for knowing what number and mix of payment options you should have. Let’s change that.

 

Chances are your store already accepts the major credit cards, and while that may have been all you needed in the past, today retailers can see tremendous value from accepting a wider range of payment options. That’s because there are a number of new and innovative payment methods that improve the checkout experience. For instance, you can let customers shop online without a credit card or give mobile shoppers a fast and easy way to checkout.

 

How many payment options is too many?

 

Now you may be thinking, “I accept enough payment methods” or “I don’t want to confuse shoppers by having too many options”. While those are valid concerns you may be surprised to hear that the average number of payment options among the top online retailers is 6.8, and some of the best accept as many as 15 payment methods.

 

There are a several reasons why it’s important to accept multiple payment options:
• 40% of shoppers feel more comfortable purchasing from a retailer with multiple payment options
• 25% of shoppers will abandon a cart that doesn’t have their preferred payment method
• 83% of shoppers feel retailers should look at adding more payment options

 

Another study found that 75% of consumers feel retailers should accept as many different payment technologies as they can. Clearly, consumers want choice in how they pay.

 

Do you let shoppers buy without a credit card?

 

While credit cards are one of the main ways that people buy online, it’s important for retailers to have a payment option that doesn’t require a credit card.

 

There are plenty of reasons why someone would want to shop online without having to use a credit card. Perhaps they are buying a gift for their spouse and have a shared credit card. Perhaps their card is full but they still need to make a purchase. Or perhaps they simply want to avoid the high interest rates on their credit card. The list goes on.

 

Another reason to offer a payment option that doesn’t require a credit card is to accommodate Millennial shoppers. Millennials now make up the largest generation in the US, and as such retailers need to make sure they cater to some of the unique preferences, one of which is not using a credit card. In fact, research by Bankrate found that 63% of Millennials don’t even have a credit card.

 

Do you have a financing option?

 

Providing shoppers with an instant financing option at the point of sale is another way that retailers can improve their checkout experience. By offering shoppers a financing method, retailers can effectively lower the barrier to making a purchase and help shoppers afford to buy the products they need.

 

This is especially beneficial if you sell big-ticket items, because you can let shoppers break the purchase into affordable monthly payments that fit their budget. In fact, 30% of shoppers using consumer credit say they wouldn’t have made the purchase if it was not for the financing. Having a consumer credit option also helps to increase average order values. Research by BigCommerce found that offering consumer credit can increase average order values by 15%.

 

While some types of financing involve a long application process, online retailers can offer their customers instant credit or financing right at the point of sale.

 

Do you have a mobile friendly payment method?

 

Mobile has become one of the most important channels for online and omnichannel retailers but convincing mobile shoppers to complete a purchase isn’t easy. This is illustrated by the fact that mobile represents over 50% of traffic to ecommerce sites, yet only makes up 30% of total sales. One of the reasons why mobile sales lag behind traffic is because not every retailer has a mobile-friendly shopping experience.

 

While there are a number of different ways retailers can improve their mobile shopping experience, having a mobile friendly payment option is one of the first steps to take. That’s because asking shoppers to fill out long forms and type a 16-digit credit card number on a small screen adds a considerable amount of friction to the experience. Having a mobile friendly payment option helps to cut down on this friction and makes it easier for mobile shoppers to checkout.

 

Setting up a new payment method may seem like a lot of work, but fortunately, innovative companies like FuturePay have taken the hassle out of adding this type of payment option. In as little as 5 minutes you can be accepting payments with FuturePay and providing your customers with a mobile friendly, card-free way to buy now and pay later.

 

P.S. Enjoy this post? You’ll love Mythbusters: 4 Myths About Online Payments

clockicon 4 Minute read

FuturePay Payment Options

 

Payment options are an important element of checkout optimization. That said, there isn’t an industry standard or best practice for knowing what number and mix of payment options you should have. Let’s change that.

 

Chances are your store already accepts the major credit cards, and while that may have been all you needed in the past, today retailers can see tremendous value from accepting a wider range of payment options. That’s because there are a number of new and innovative payment methods that improve the checkout experience. For instance, you can let customers shop online without a credit card or give mobile shoppers a fast and easy way to checkout.

 

How many payment options is too many?

 

Now you may be thinking, “I accept enough payment methods” or “I don’t want to confuse shoppers by having too many options”. While those are valid concerns you may be surprised to hear that the average number of payment options among the top online retailers is 6.8, and some of the best accept as many as 15 payment methods.

 

There are a several reasons why it’s important to accept multiple payment options:
• 40% of shoppers feel more comfortable purchasing from a retailer with multiple payment options
• 25% of shoppers will abandon a cart that doesn’t have their preferred payment method
• 83% of shoppers feel retailers should look at adding more payment options

 

Another study found that 75% of consumers feel retailers should accept as many different payment technologies as they can. Clearly, consumers want choice in how they pay.

 

Do you let shoppers buy without a credit card?

 

While credit cards are one of the main ways that people buy online, it’s important for retailers to have a payment option that doesn’t require a credit card.

 

There are plenty of reasons why someone would want to shop online without having to use a credit card. Perhaps they are buying a gift for their spouse and have a shared credit card. Perhaps their card is full but they still need to make a purchase. Or perhaps they simply want to avoid the high interest rates on their credit card. The list goes on.

 

Another reason to offer a payment option that doesn’t require a credit card is to accommodate Millennial shoppers. Millennials now make up the largest generation in the US, and as such retailers need to make sure they cater to some of the unique preferences, one of which is not using a credit card. In fact, research by Bankrate found that 63% of Millennials don’t even have a credit card.

 

Do you have a financing option?

 

Providing shoppers with an instant financing option at the point of sale is another way that retailers can improve their checkout experience. By offering shoppers a financing method, retailers can effectively lower the barrier to making a purchase and help shoppers afford to buy the products they need.

 

This is especially beneficial if you sell big-ticket items, because you can let shoppers break the purchase into affordable monthly payments that fit their budget. In fact, 30% of shoppers using consumer credit say they wouldn’t have made the purchase if it was not for the financing. Having a consumer credit option also helps to increase average order values. Research by BigCommerce found that offering consumer credit can increase average order values by 15%.

 

While some types of financing involve a long application process, online retailers can offer their customers instant credit or financing right at the point of sale.

 

Do you have a mobile friendly payment method?

 

Mobile has become one of the most important channels for online and omnichannel retailers but convincing mobile shoppers to complete a purchase isn’t easy. This is illustrated by the fact that mobile represents over 50% of traffic to ecommerce sites, yet only makes up 30% of total sales. One of the reasons why mobile sales lag behind traffic is because not every retailer has a mobile-friendly shopping experience.

 

While there are a number of different ways retailers can improve their mobile shopping experience, having a mobile friendly payment option is one of the first steps to take. That’s because asking shoppers to fill out long forms and type a 16-digit credit card number on a small screen adds a considerable amount of friction to the experience. Having a mobile friendly payment option helps to cut down on this friction and makes it easier for mobile shoppers to checkout.

 

Setting up a new payment method may seem like a lot of work, but fortunately, innovative companies like FuturePay have taken the hassle out of adding this type of payment option. In as little as 5 minutes you can be accepting payments with FuturePay and providing your customers with a mobile friendly, card-free way to buy now and pay later.

 

P.S. Enjoy this post? You’ll love Mythbusters: 4 Myths About Online Payments