Every eCommerce website needs a select few key components in order to operate. A means of earning money is arguably the most important of all of them. Making money is the fundamental objective of your business, but if you can’t accept payments online, that goal is unachievable.
Having more than one method of accepting payments could provide you an advantage in the cutthroat online industry.
Online payment options are available for eCommerce firms to choose from, and each one guarantees a simple and secure checkout process.
Here is the essential knowledge you need to know about online payment methods and the finest choices available to ensure that you are offering your visitors the best payment methods (and capturing as many sales as possible).
Online Payment Gateways: What Are They?
The eCommerce services that handle payment information for websites are known as online payment gateways. Online payment gateways provide eCommerce enterprises with two key advantages:
1. They speed up and simplify the checkout process.
Have you ever tried to buy anything only to find that it would take too long and be more work than you were willing to put in?
Around 70% of people who had a clear intention to buy something abandoned their shopping carts on average. You run a considerable risk of losing sales if your checkout procedure creates obstacles for customers to overcome.
With the help of an effective online payment gateway, you can catch the majority of those sales rather than losing them.
2. They offer encryption to protect the data of your customers.
Every online purchase a customer makes requires confidence due to the risk of identity theft. You must make sure that the private information customers give you is shielded from online thieves looking to steal credit card numbers from unprotected websites.
Online payment gateways provide the necessary encryption and safety safeguards to safeguard the information of your clients because they are focused on processing financial data.
Why Provide Several Online Payment Options?
While it is feasible to get by with just one secure and convenient online payment option, many customers are beginning to expect to use their preferred payment options on websites all across the internet.
Customers are increasingly able to check out on a number of websites without having to spend time entering all of their payment and address information for each purchase because to the rising popularity of services like PayPal, Square, and Apple Pay. Instead, users only need to log into an account they frequently use, and in many circumstances, their device may remember that account and they won’t even need to do that.
This gives them a more seamless and practical experience, particularly on mobile, where more and more online purchases are being made. Your visitors will be less likely to bother visiting a website that requires them to do more work as they grow accustomed to this level of simplicity.
Is Adding New Payment Options Really Worth the Time and Work Involved?
According to a Bayard study, 19% of cart abandoners indicated they didn’t trust the website with their credit card information. Furthermore, 8% of respondents specifically expressed a lack of payment options.
Doing some quick math reveals that, on average, 70 out of every 100 customers who add an item to their cart will afterwards abandon it. And between 8 and 19% of those will do it because they don’t like the online payment options you currently provide.
Up to 13 of the 70 customers, or 19%, might be converted by offering more online payment alternatives. Additionally, you might convert another 5 or so customers (the 8% who prefer other options) if you include the payment options that your target market prefers.
Getting up to 18 extra conversions for every 100 potential customers looks like a time well spent. Let’s examine some strategies to think about.
Consider Online Payment Options
All of the market’s available online payment options promise to provide quick and safe methods of payment. Each has a unique justification for thinking about employing them.
One of the most popular and well-known methods of internet payment is PayPal. More than 254 million people utilize the site. There are a lot of customers who would find it simpler to make purchases on your website if they could use Paypal. The company boasts that more than 17 million businesses presently use it and that clients who use PayPal to complete their transactions convert at 82% higher rates than those who use other payment methods.
That’s a fairly good argument in favor of using PayPal. Fortunately, it’s rather easy to incorporate a PayPal button into your checkout process (although, if you don’t use an eCommerce platform, you might need to deal with a developer). Each PayPal-facilitated purchase will cost you 30 cents plus 2.9%.
2. Amazon Pay
Although Amazon is undoubtedly one of the most popular websites on the internet and almost all of your consumers will already have an account there, Paypal may also be well-known. By integrating Amazon Pay into your store, you may enable Amazon shoppers to purchase from you without having to provide their payment information during checkout.
For hundreds of millions of clients, you’ll lower the barriers to buying while simultaneously providing a payment alternative with what the corporation claims is proven fraud protection. Amazon’s payment mechanism is user-friendly on mobile devices and provides a flawless transaction where it counts.
It only takes a few minutes to set up an Amazon Pay button on your website using their Express Integration option. Or you may personalize the experience to better fit your website by using their API, which takes a little longer. Amazon Pay costs 30 cents plus 2.9% for each purchase, similar to PayPal.
3. Google Pay
Google is the only company that has a chance of taking on PayPal and Amazon for market share. The business now provides Google Pay as their own online payment option. According to Google, hundreds of millions of its users already have their credit card information saved to their Google accounts, making the availability of Google Pay an extra convenience for a sizable portion of the population.
They guarantee a simple process—on PC and mobile—and top-notch security through encryption, much like the other options.
In order to eliminate the need for paper and plastic cards, Google Pay also enables shops to build up customer loyalty programs, digital gift cards, and discounts. For even greater reach, Google Pay integrates with PayPal and Visa Checkout. You and your clients can both use it for free.