Conversion rates are numerical measures of potential customers that proceed to purchase from your eCommerce channel. It is the percentage of total visitors that end up buying from you. Many online retailers concentrate on increasing the traffic to their site in an effort to raise their conversion rate. However, you can also optimize your conversion rate by maximizing the number of payment options you offer to your potential customers. It is far easier to double the amount of sales from those customers already visiting your site, than to try to double the amount of visitors to your site.
Make it easy for online shoppers to pay you
By offering a variety of different payment options, you make the customer’s life easier. The more difficult your website is to use and the more barriers there are in place, makes completing the checkout action problematic. While credit and debit have long been the dominant payment methods for online transactions, not everybody has a credit card or wants to use one. While some customers are comfortable using their debit or credit cards online, others would prefer to pay by other methods whether due to lack of access to a card, having security or fraud concerns, or simply due to convenience.
There is no shortage of alternative payment choices available from recognizable brands; among them V.me by Visa, MasterPass by MasterCard, Google Wallet, and of course eBay’s PayPal. In addition to digital wallets, there are other payment methods available besides Visa and MasterCard that online retail stores may benefit from accepting such as reloadable prepaid cards, controlled payment or virtual account numbers, and Amazon Payments.
Why Should You offer multiple payment methods?
If you don’t offer multiple payment methods, you risk losing potential sales. A survey performed by YouGov, a UK-based international Internet market research firm, found that 50% of those who regularly shop online would cancel their purchase if their preferred method of payment were not available for use. Furthermore, over one third (40%) of participants said they would feel more comfortable purchasing from a retailer online who offers multiple payment methods.
According to WorldPay, a payment processing company, alternative payment methods (anything other than traditional credit or debit cards) will account for more than half (59%) of all transactions by 2017, up from 43% in 2012. This is evident through the prevalence of mobile commerce and the increased access to global markets. Digital wallets alone are expected to increase to 43% market share by 2015, with PayPal currently in use in more than half of the market. Enabling customers to pay with specialized mobile payment solutions or local payment alternatives helps to maximize global transaction success through global customer reach and ultimately increases your store’s conversion rate.
What does this all mean?
The more payment methods available, the more customers an online store has access to, the more purchases can be made. Adding an array of additional payment methods means that customers aren’t restricted to solely using credit cards in making a purchase. eCommerce merchants who recognize and appreciate that different customers have different preferences in making online transactions will come out ahead. It makes sense to provide multiple payment methods and appeal to as many potential customers as possible.