Alternative payment methods, or APMs, such as FuturePay, are becoming increasingly popular across the United States. A recent Forrester report reveals that one out of five eCommerce transactions involves an alternative payment method. This translates to over $64 billion in US sales annually using APMs. That figure is expected to grow 23% over the next four years. In addition, Forrester reports that about 60% of the largest US merchants are already using alternative payment methods.
As more shoppers learn about, and in many cases demand, alternative payment methods, merchants who do not offer APMs are missing out on sales. In addition to facilitating a successful transaction, APMs can streamline shoppers’ purchase paths as well as expand your eCommerce store’s reach to new channels and audiences. Still not convinced that offering alternative payment methods is the right choice for your store? Here are three more compelling reasons to add APMs:
1. Alternate payment methods facilitate mobile buying.
Research confirms what many merchants already know to be true: More shoppers are purchasing goods from their mobile devices. While mobile phone users certainly have the option to pay using traditional methods, such as credit cards, a ShopVisible survey suggests that many opt not to. The survey found that 67% of mobile purchases were completed using an alternate payment method instead of a credit card. What’s more, another survey by SeeWhy showed a massive 101% increase in conversions among mobile users when APMs were implemented. This effect was also observed across PCs (86% increase) and tablets (51% increase). If you want a bigger piece of the mobile pie, it makes sense to offer alternate mobile payment methods that are relevant to the mobile audience.
2. Alternate payment methods are convenient to the customer.
Why do shoppers opt for an APM when they could use a credit card? Convenience. Entering credit card information into a smartphone or tablet is often cumbersome. Tiny screens and large fingers make data entry prone to errors. In contrast, alternate payment methods, with fewer (and shorter) fields to enter sidestep these problems. Since mobile commerce is growing at a faster rate than online shopping from PCs, it is especially important that eCommerce merchants offer payment methods make checkout easy on mobile devices. If you don’t offer convenient payment options, customers could opt to shop elsewhere.
3. Alternate payment methods alleviate concerns about security breaches.
Recent credit card data breaches such as the massive breach that affected Target shoppers have heightened concerns about sharing credit card information both in person and online. With consumer anxiety on the rise, fewer are willing to share their credit card numbers. Since alternate payment methods do not require any credit card information, they alleviate these concerns, providing you with a way to sell to shoppers that don’t want to use a credit card online.
Increased opportunities with the growing mobile market, a better user experience, and improved security are three compelling reasons to add alternate payment methods to your online store. Adding an APM such as FuturePay is easy, and they can be offered alongside traditional payment methods such as credit cards. Offering more ways for your shoppers to pay will drive sales by making it easier, more convenient, and safer to buy your products.