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5 min read
How much is your payment form affecting the conversions on your website?
Posted in Conversion Optimisation on 26th July 2021 11:40 am
Businesses in today’s world have undergone a digital transformation. This simply doesn’t mean they function online. It also means that they operate electronically. Online transactions are so commonplace now that businesses need to be able to efficiently handle electronic payments, regardless of the form.
What it really is, is about providing a more convenient way to do business to consumers, and one of the most convenient ways consumers can transact with a business is through online shopping. This need for convenience and online shopping has resulted in the creation of numerous payment options. In the world today, debit or credit cards are perhaps the most utilised form of electronic payments, however, there are other methods such as Alternative Payment Methods, that have grown not only in popularity but also in usage all over the eCommerce landscape.
This increasing usage is not peculiar as APMs gained the lion’s share (55%) of eCommerce payments worldwide back in 2019. That being said, what do payment methods have to do with a brand’s conversion rate? Convenience. The answer simply lies in convenience of the transaction process. This article aims to highlight how much payment methods affect a website’s conversion rate.
In today’s world, businesses which operate online, be it industrial companies or commerce companies, have to make sure customers have a seamless experience. This means being able to efficiently meet the needs, expectations and demands of their customers, as that has a major influence on the market success of the company. Consequently, when payment methods are being discussed, the focus really is on ensuring the needs of customers are met.
For example, when customers get to your site’s checkout page, the payment options you make available to them have the ability to encourage or deter them from finalising their order. This is the link that determines if your customer continues through the process or simply abandons their shopping cart or transaction. Why does this happen?
When collated across numerous industries from all over the world, the rate of cart abandonment stands at 74.2%. There are numerous reasons as to why customers abandon their carts, with a dearth of payment methods being one of them. Nevertheless, if customers do not see their desired payment form available on your site’s checkout page, they are more likely to not proceed with the purchase.
There are more than 200 payment options available for usage by businesses and websites that can handle online transactions and electronic payments. For instance, bank transfers, direct debit, e-invoices, cryptocurrencies and digital wallets are all forms of APMs. Noting that, customers tend to have at least 2 payment options they prefer over others.
What this means is that there really isn’t a need to have every payment method implemented just because you want customers to finalise their orders or purchase. What you should do is look to implement the most common methods your consumers and target audience utilise.
Additionally, some payment options can be amalgamated into one solution. One such example is an Automated Clearing House payment. Doing this ensures that every consumer’s preferred payment method is directed through the network of an ACH. This means payment options such as P2P transactions, bill deposits and direct deposits can be seamlessly integrated into one payment solution.
It is important to reiterate that not every payment option has to be implemented on your checkout page. What you should instead do, is research your customer base to find out what the most preferred or commonly used payment option for that market is. Doing this ensures that only the payment options relevant to your brand and your customers are implemented.
This is particularly important as implementing payment options desired by your customers can significantly improve your site’s conversion rate. Research has shown that having the three most popular payment methods amongst your customers can improve sales by as much as 71%.
Conversely, numerous payment options can be an important factor to your consumers, as well as their overall customer experience and satisfaction. When the appropriate payment options are implemented, you not only offer your customer convenience, but you also decrease the likelihood of cart abandonment, ensuring that your customers finalise their orders and make their purchases.
Implementing numerous payment options does not automatically mean customers are obligated to finalise the purchase process. While having numerous payment forms play an important role in influencing customers to purchase, the look of your checkout page is what really matters. In order to close the sale or seal the deal, it has to be optimised. As stated earlier, not having the preferred payment option is just one of the reasons why customers abandon their carts. A few others are:
With these reasons in mind, it should be a priority to optimise your checkout page’s process. You have to ensure that your site is not only functional and fast but as optimised for mobile customers. You should also refrain from disturbing customers with superfluous account signups and challenging checkout processes. The most important implementation should of course be the security aspect. Your customers must feel their sensitive data is secure when they provide it on your site.
Payment methods offer consumers a seamless and convenient experience while they shop online. When you are able to offer adequate payment methods to your customers, you build trust with them and this ensures that they do not only finalise their purchase but transform into return customers.
Have any questions about what you have read, or want to learn more about how Run2 Digital could help you drive conversions?
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