Last editedJun 20222 min read
The rise of digital technology has created a situation in which any business can think about operating globally. The only way to make sure you reach as many customers as possible is to optimise your payment mix. Signing up to GoCardless means that you can create payment pages tailored to the methods which you and your customers prefer.
The simple fact of the matter is that a wider choice of payment methods means a reduction in the possible friction faced by potential customers when making a purchase. In addition to this, services offered by GoCardless, such as Direct Debit, operate on the principle of ‘pulling’ the payment directly from a customer’s account, rather than relying on the customer actively making the payment.
Benefits of offering different payment methods
The benefits of offering different payment methods begin and end with making it easier for people to spend money with you. In this way cash flow will improve and a higher turnover of goods and services can be achieved. Other benefits include the following:
Wider target audience
Operating on a global basis means working in a way which people in different parts of the world recognise. In many regions one particular payment method may be more popular than all the others, making it vital that you offer this option to operate successfully. According to Statista, while credit and debit cards are the most popular payment option in the Americas (82%), in Europe the method preferred by 80% of customers is digital wallets such as PayPal and Alipay. The wider choice of payment options you offer, the more likely you are to meet local expectations and preferences.
Nothing could be more frustrating for you than discovering that a customer is filling a digital shopping basket with goods and then discarding them at the checkout because their preferred payment method isn’t offered. Maximising the number of payment methods available to customers reduces the likelihood of this happening, and drives higher sales and return custom.
To a large degree the art of successful online retail involves establishing trust with customers to such a degree that they are willing to spend money with a business which they haven’t experienced as a physical destination. Offering the maximum number of payment options goes a long way towards establishing this trust by creating an impression of professionalism. Enabling customers to use the method which they have successfully used many times in the past also helps them to feel more secure when making a payment.
Different payment methods on offer
There are too many possible payment options to list them all in full here, but the two most popular are credit and debit cards and Direct Debits, both of which can be processed using the GoCardless platform. Visa and MasterCard are the most popular debit card brands in the UK, although some customers want to pay using Diners Club or American Express cards. For credit cards, the three major options are again Visa, MasterCard and American Express.
Moving away from simple one-off checkout payments, businesses can opt toaccept payments using methods such as Bacs transfer, standing order and digital wallets. The more different payment methods you offer customers, the easier you’ll find it to get paid quickly.
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.