Last editedFeb 20232 min read
If you’re not offering a variety of different payment methods, you might be limiting your business’s potential for revenue and growth. A successful business will strive to meet customer needs, not only in terms of products and services but also regarding user experience.
Here are five reasons to offer various different payment methods when possible, giving both your brand and bottom line a boost.
You can increase conversion rates
Perhaps the biggest reason to offer various payment methods is to maximise conversion rates on your website. Every customer is different. Some prefer to pay with credit and debit cards, while others prefer services like PayPal or Klarna.
Failure to cater for these preferences leads to abandoned shopping carts, because the customer won’t complete the sale if they don’t see their preferred payment method listed. With such a wide selection of online shopping experiences to choose from, today’s customers expect a personalised service – and this extends to the checkout page. You’ll reduce abandoned shopping cart rates and maximise conversions at the same time with a comprehensive selection of payment methods.
You can attract a wider customer demographic.
Are you looking for ways to attract a new audience or grow your existing customer base? Offering different ways of paying is a good start. Gen Z and Millennial shoppers tend to prefer online payment methods including digital wallets and Buy Now Pay Later services, for example. Older demographics might prefer traditional cash or card payments instead. If you want to attract a specific demographic, research their payment preferences first.
You can provide a better user experience
Streamline your checkout page with a fully integrated payment gateway and multiple payment methods. This makes the final touchpoint of the customer journey one that’s simple to navigate. Ideally, a customer will see a selection of payment methods listed. They need only click on the payment method of choice to complete the sale. With a hassle-free shopping interface, customers are more likely to return to your website. It also makes your website appear more secure and professional when you offer different ways of paying.
You can expand to an international market
Payment preferences aren’t just limited to age-related demographics – there are also regional differences to be aware of.
Buyers in some countries will prefer in-app mobile purchasing, while others prefer direct bank transfers. If you’re interested in connecting with customers in different overseas markets, offering different payment methods ensures that they find a familiar choice to complete the sale. Look for payment gateways that allow overseas customers to pay in their local currency, without tacked-on fees. GoCardless enables businesses to receive international payments from over 30 countries, all at the real exchange rate. That means customers can pay in their own local currency for maximum convenience.
You can take recurring subscription payments
If your business provides ongoing services or provides a subscription-based business model, you’ll need to find a good recurring payment method. Scheduling regular card payments can be a hassle, so in this case you’ll want to expand your payment methods to include direct debit payments as well. Bank debit payments were identified as the recurring payment method of choice for the Australian market, according toYouGov research into customer payment preferences.
Offering different payment methods: a win-win
Offering an array of various payment methods is a win-win for customers and businesses alike.
You’ll provide the payment options that your customers prefer, while increasing your own sales figures with improved conversion rates and repeat purchases. To get started, it’s helpful to analyse your target demographic to determine which payment methods they typically prefer. Invest in a few methods that are most likely to be used, and then monitor your sales data to determine which payment methods are performing the best.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.