Why It Is Good for Brands to Offer a Variety of Payment Options to Their Customers
We live in a fast-paced world where people crave instant gratification. This very much filters into the online shopping world, where consumers see a product or service they want, and want to purchase it in a quick, simple and seamless manner. They want a flawless user experience (UX).
One of the things that can impact this user experience is how the customer pays at checkout. According to research, the average shopping cart abandonment rate is 68.81%, with some recent studies showing rates of 74.52%.
To succeed in today’s e-commerce battlefield and to help limit cart abandonment, offering multiple payment options is crucial. Not only does it make the UX smoother and more convenient, but it helps to increase conversion rate and encourage customer trust and loyalty.
Modern technology has led to the introduction of a variety of payment methods, from paying with cryptocurrency, digital wallets and prepayment methods, to apps like Klarna, where you can pay for goods in instalments, so brands are spoilt for choice when it comes to choosing which ones to offer.
Here we will break down some of the advantages of providing multiple payment options, and how they can help brands generate sales.
For many industries, conversion really matters, and aspects like offering a variety of payment options can make a big difference on conversion rates. Online casinos are a good example of this, as every lost customer is essentially lost profit. From paysafecard casinos to online casinos accepting Bitcoin and other cryptocurrencies, gambling operators generally want to use as many payment methods as possible to ensure that they can cater to the needs of any new potential player and convert as many of them as possible.
The same can be said for e-commerce sites. If customers have made it to the checkout, but their preferred method of payment is not an option, they may abandon their cart. This is then another lost customer and a poor conversion rate for the brand or business.
Expectation and Convenience
Convenience is crucial when it comes to making a sale. Sluggish checkout processes and poorly designed websites are just some of the reasons that make shoppers hesitate and leave, leading to abandoned checkouts or people leaving before even adding a product to their basket. A website which makes purchasing a product or service easy, with a convenient and an overall good UX, is more likely to get customers.
Customers not only expect a good user experience, but they also expect brands to meet their every need. Providing a variety of payment methods helps brands to assert themselves as a forward-thinking company that places the customer’s needs at the heart of what they do. Brand visibility then increases, along with sales. A mix of payment methods will also reduce people hesitating at checkouts, stopping them faffing around for their wallets or purses, and allowing them to use a method they feel most comfortable with.
Growing Your Audience
Different generations and demographics have different preferences when it comes to payment methods. Generation Z and millennials tend to prefer alternative payment methods like digital wallets, in-app purchasing and mobile payments, whereas Generation X tends to lean towards paying with debit and credit cards.
If you can try to cater to them all, or as many of them as possible, by offering a range of payment methods across your channels or website, you will be able to reach a larger audience. However, if you choose to only offer one or two payment methods, you could essentially be cutting out a whole generation or demographic from accessing your product or service, which could potentially stop growth and reduce sales.
Building Brand Trust
Trust and revenue go hand in hand, being hugely important in today’s retail world. Brands and companies are more likely to reach more new customers and retain old customers if their brand is perceived as transparent and trustworthy.
Offering multiple payment methods can be one of many effective tools to help build trust and ensure growth of a business. Through a variety of consistent payment options, customers will feel valued and safe to spend their money, and they will be more likely to return to shop with you again.