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Which Payment Options Should Businesses Offer in 2023?

Payment Options

When it comes to payment options online, most businesses have already come to grips with the preferred methods chosen by their buyers.

Indeed, Paypal, for instance, is one of the most dominant payment methods in the digital world, used by over 254 million individuals online. It’s easy to understand why. Paypal is convenient and can speed up the transaction process significantly. When a user chooses to pay via Paypal, they often only need to enter their username and password to enable the transaction. More importantly, the Paypal integration can also simplify data entry, as it can automatically fill up the buyer’s name and postal address. In other words, Paypal is convenient, and that’s why it records some of the highest conversion rates compared to other payment methods.

But, the truth is that businesses need to diversify their thinking when it comes to online payments. Granted, Paypal, credit cards, and Apple Pay remain some of the most commonly used methods during online transactions. But it is time to think as well in terms of payment options.

Payment methods refer to the medium used to pay.

Payment options, on the other hand, refer to the process, aka how the payment should occur. This is typically something that B2C buyers have little input on. Some companies, when it comes to membership payment, may allow users to select when they wish the payment to be debited. But there are still a lot more options that are left to be explored. In 2023, it is time to empower buyers to pay on their own terms.

Pay later

Pay later allows customers to purchase a product or service without having to pay the full amount upfront. It is becoming a popular payment option that has appeared in some online businesses. Amazon has successfully implemented it, contributing to greater pressure on other companies to follow the same strategy.

For customers, this can provide the flexibility they need when making online purchases. If a product needed to be returned, customers usually had to wait for the return to be processed before receiving a refund. When choosing “buy now pay later”, they don’t need to worry about it. This option is also available on Paypal now.

Additionally, customers who are working on a tight budget are also more likely to prefer an option that allows them to schedule their payments according to when they are paid themselves. This means they don’t need to delay buying something they need because they don’t have to worry about their day-to-day budget.

Pay in installments

Paying in installments is not a novelty, but it is typically an option that is only reserved for specific purchases, such as furniture, technology, or home improvement services. The truth is that paying in installments needs to become a mainstream payment option, regardless of the purchased product or its value. It can represent significant benefits for customers, as it acts as an alternative to traditional loans without the same level of credit check or approval.

Installment payments allow customers to make expensive purchases and schedule payments in a more manageable and budget-friendly way. This not only can help increase customer loyalty and satisfaction, but it also enables companies to reach out to a broader audience. Customers who would not typically meet the economic profile of the ideal buyer can now gain access to your products and services.

Additionally, installment payments also guarantee the business can get paid from Day One, even if it isn’t the full amount.

Payment Options

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Divide the amount over multiple cards

This option is already available to customers in physical stores and restaurants. This approach tackles a wider part of the population. Indeed, half of Americans own at least 2 credit cards, and 13% have at least 5 cards. The advantage of owning multiple cards is simple: Americans can spread their debt, which can make it more manageable at a time of high inflation. Additionally, different credit cards will have different limits, which can be accumulated for large purchases.

Being able to assign different amounts of the same purchase to more than one payment card can make large transactions more affordable. It could be a case of dividing the sum to be paid between two cards to avoid maxing out the credit card, for instance.

Alternatively, it could also assign the higher amount to the credit card with the lower interest rate to reduce financial burden.

Finally, for shared purchases, this option would allow different buyers to pay together.

Choose multiple payment methods

If a customer can choose to spread the amount across multiple cards, couldn’t they also spread the amount over more than one payment method? Paypal already provides a similar option, allowing buyers to use their existing balance before moving to the card assigned to their accounts.

But the process could be applied to all online transactions. This can be beneficial for customers who want to share costs with another buyer or who are using different accounts. Some examples could include:

  • Using Apple Pay and a card assigned to another bank account
  • Combining a gift card with the Paypal balance and a credit card
  • Using two Paypal accounts
  • Accepting crypto payments combined with credit card

There are multiple advantages to doing this. Firstly, it can increase conversion rates as customers are more likely to find the best combination for their payments. Additionally, it can also elevate the business investment strategy. For instance, receiving many crypto payments could encourage crypt investments in the future, as long as the commercial investment strategy includes accurate crypto price prediction methods.

Create a secure & rechargeable account

This option already exists on websites that are targeted at children. Parents can make a payment into the account, and children use it for their purchases online.

But this could also be an effective approach for corporate accounts. Businesses that specialize in selling B2B products or services could set up this service to speed up the purchase process for their clients. This will reduce the decision-making time and increase purchase order volume.

In 2023, it is time to personalize the payment options and put customers back in control. As the economic crisis shows no sign of disappearing, enabling customers to pay how and when they want could be a decisive factor for long-term business growth.

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