As consumer demands shift, there’s an increasing expectation for businesses to offer different payment options for goods and services. Doing so has therefore become a necessity to remain competitive in the modern online marketplace. However with so many choices available, it can be hard to know which ones to offer.
In this article, we’ll explore how offering different online payment options can support your business, including the benefits it provides to your customers. We’ll also take a look at how to make sure your payment solutions are secure and reliable.
Let’s start by taking a look at how the global payment landscape has changed in recent years.
Few sectors seem to have developed as explosively as the payments industry. Thanks to a variety of technological advancements, businesses of all sizes are now able to easily accept a wide range of different payment methods across a variety of devices and service providers.
Instead of the more traditional options such as card payments, bank transfers and Direct Debits, consumers can also choose to pay using digital wallets, mobile payments, and even cryptocurrencies. With so many different online payment options available to them, consumers are using these newer methods in increasing numbers.
Businesses therefore need to adapt to these changing trends to attract and retain customers. This is particularly important for growing brands that are looking to expand into new markets and foreign countries, as these will have different payment preferences than their current customers.
Offering different payment options requires businesses to implement solutions through different payment providers, apps and software, which can incur additional costs. However, there are many benefits for businesses of providing a variety of methods that can make the investment worthwhile.li
Customers are more likely to complete a purchase when they’re able to choose from a variety of different online payment options. By increasing the number of methods available, you make it more likely that one of them is accessible to and preferred by a customer. This can boost your conversion rate, sales and revenue, which should help to offset any additional costs incurred by offering multiple payment methods.
Investing in customer retention strategies can be a really cost-effective way to increase profits. By meeting the needs and preferences of your customers, you can build brand loyalty and encourage repeat purchases. This allows you to maximise the lifetime value of each customer, bringing in more income over a longer period of time with minimal effort.
Instead of simply choosing the single option that benefits your business the most, offering multiple different payment methods allows you to foster a customer-centric image. As well as showing that you care about your customers, there are other, less obvious benefits, such as the environmental benefits of digital payments, which can support your corporate social responsibility.
Limited payment options can lead to cart abandonment, where customers leave your website before completing the checkout process. By offering different payment methods, businesses can reduce cart abandonment rates and capitalise on intent, increasing the number of successful purchases.
Businesses that offer a variety of different payment options can gain a competitive edge over similar brands with less choice. By providing a more convenient and flexible payment experience, you can attract more customers and increase the likelihood of them making a purchase. In particular, payment plans and ‘buy now, pay later’ options can make choosing your brand more affordable than competitors.
By carefully researching different payment methods, businesses can avoid certain associated risks and disadvantages, such as higher per-transaction fees or less robust security features. For example, you may choose not to accept credit card payments, as they're more likely to incur disputes and chargebacks than other methods, which can be costly for businesses.
When customers see familiar payment methods at checkout, this helps them to perceive the business as trustworthy and reliable. However, adding too many different payment options, particularly from less well-known providers, may have the opposite effect. It’s important to ensure that the methods you choose are secure and trusted by your customers.
As convenient as digital and online payments are, they rely on hardware, software and data connectivity to function properly. Offering different online payment options gives you the peace of mind that there’s always a backup in case of technical problems. This helps to ensure that customers can still complete their transactions without disruption, maintaining business continuity.
A key part of choosing which payment options to offer is gaining an understanding of why consumers choose certain methods over others. Let’s explore the key benefits for customers of different payment options.
Providing a range of different payment options gives customers the flexibility to choose the method that is most convenient for them, making the transaction quicker and easier. Industry, consumer demographic and country of residence all have an impact on payment method preference, so it’s important to research which ones your customers prefer.
The use of payment plans has increased dramatically over recent years, in part due to the rising cost of living. Offering instalment plans or payment gateways that allow ‘buy now, pay later’ services can make purchases more affordable for customers. Instead of having to pay up front, they can choose to spread the cost.
Not all customers have access to all different payment methods. By offering multiple payment options, businesses cater to a wider audience, including those who may not have access to traditional banking services, or who are unfamiliar with alternative payment methods.
Providing a variety of different payment options allows customers to select one that they feel safe using. For example, some may prefer the familiar security features of credit card payments, while others may place more trust in digital wallets or payment gateways that use biometric checks.
Certain payment methods have built-in rewards programs or financial incentives. Being able to choose which payment method they use allows customers to select the one that gives them the most benefits. From air miles and cashback to discounts on future purchases, there are lots of ways for customers to maximise their spending.
The choice to select from a variety of different online payment options enhances convenience and minimises points of friction throughout the payment process. Whether for a one-off purchase or regular transactions, this results in a smoother, more enjoyable customer experience.
Whichever of the many different payment methods you choose to offer, you must remember that data security and fraud prevention are of the utmost importance. As well as doing your due diligence to safeguard your customers’ personal and financial information, secure payment gateways also help to protect your business from malicious attacks and legal disputes, both of which can be costly.
It’s essential to ensure that all of the payment gateways you select are compliant with international financial regulations, such as the Payment Card Industry Data Security Standard (PCI DSS) and the General Data Protection Regulation (GDPR). Failure to comply could result in fines, legal disputes, and damage to your reputation. Remember to conduct regular security audits to ensure that your payment process is always safe, reliable, and compliant with the most recent legislation.
You should also make sure to implement robust payment security measures, including encryption, two-factor authentication and tokenization. Implementing multiple such measures not only helps to verify the legitimacy of a transaction, but also ensures that customer data is unreadable should it be intercepted.
As we’ve seen in this article, offering different payment methods is absolutely essential for modern businesses to thrive. Along with offering a variety of benefits to customers, it also helps businesses to boost their profits, increase brand trust, and minimise the risk of fraud and data theft. However, with so many options available, it can be difficult to know where to start.
Implementing a secure multi-channel payment solution is a great way for businesses to offer different payment options. By gathering online, mobile, telephone and in-person payments into a single interface, it allows you to offer greater convenience and flexibility for your customers without increasing the administrative burden for your employees. To find out more about offering different online payment options, get in touch and we’ll be happy to help.
If you're ready to elevate your payment experience and boost customer satisfaction, Access PaySuite is here to help. Contact us today to explore tailored solutions for your business.
This guide, written for mid-sized financial services providers, including fintechs and lenders, building societies and credit unions, will look at customers’ relationships with their provider, including their expectations and any difficulties they’ve faced.
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