Business owners must make difficult decisions every day. Many decisions revolve around pricing and payments. These decisions play a key role in the customer experience, so they cannot be taken lightly.
For example, consumers prefer to have payment options. When a retailer offers these options, it draws in more consumers. Why is variety so important when it comes to payments?
The Benefits of Multiple Payment Options
When a company offers multiple payment options, it draws a larger pool of customers. Every customer has a preferred way of paying. If a business doesn’t offer this method, the customer may look elsewhere for the products and services it wants or needs.
Certain businesses and government organizations pay by eCheck, so this option should be included. With each additional option offered, such as eChecks, a business will find its conversion rate increases, while its need for customer service declines. BlueSnap makes it easy to offer multiple payment options, such as those described below.
Popular eCommerce Payment Options
In the past, consumers typically found they could pay by credit or debit card when making a purchase online. PayPal was another option for consumers, but that was about it. Over time, more payment options became available, and these options continue to expand today. However, they typically fall into one of two categories.
Traditional Payment Methods
Payment methods that have been around for decades fall under the traditional payment method category. This includes credit and debit cards along with PayPal. When customers visit any online retailer, they assume these payment methods will be offered.
Most consumers prefer to use a debit or credit card when making an online purchase. However, 25 percent of consumers choose PayPal over other payment methods. They appreciate the extra layer of security this option provides. Most eCommerce solutions now offer this payment option as part of a standard package.
Alternative Payment Methods
New payment methods continue to pop up. eWallets are a good example of an alternative payment method, and there are many to choose from. This includes Apple Pay, Google Pay, and Venmo. Most eWallets are similar in that they offer one-click payments. Young professionals who are tech-savvy often choose this payment option.
Some people, however, prefer to pay by eCheck. Older niche audiences often pay this way, so it’s an option that should be considered. Check payments have been around for years, and they aren’t going away, so a business might find it benefits from adding this method to its payment options.
Cryptocurrency is another payment method a business may wish to offer. Although it isn’t commonly used for online purchases, its popularity has increased in recent years. It doesn’t hurt to become familiar with this payment option, as it may become more commonplace as a payment method in the coming years.
Which Methods Should a Business Offer?
Every business should allow customers to pay by debit card, credit card, or PayPal, as they remain the preferred payment methods. If the business caters to younger generations, add eWallet options. When the target audience is older individuals, eChecks is a good choice. Tech companies should look into accepting cryptocurrency payments.
Regardless of which payment options are offered, security must be the top priority. Use SSL with an https encrypted protocol to increase this security. In addition, understand all security threats associated with each option before choosing which methods to use. If customer information is hacked, the payment options offered won’t be of much importance, as customers will no longer trust the company or want to spend their money on it.
