Last editedFeb 20232 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, depending on what product or service your customer is purchasing, or how you wish to deliver it.
For instance, if a business depends on collecting recurring payments, whether for subscriptions, membership fees, instalments or more, it makes sense to look for a more cost-effective solution than cards that's optimised for taking repeat payments.
Presenting a wider choice of payment methods reduces the possible friction faced by potential customers when making a purchase.
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 or debit cards and bank payments. Both simply offer a means to transfer funds from one bank account to another, but via a different mechanism. By bypassing the card networks, businesses using GoCardless can save on processing fees whilst also benefiting from easy-to-use software, integrations with 300+ business software providers, and reduced failure rates.
Consumers are moving away from cards, choosing instead to use more direct bank payments as a way to reduce costs for their favourite businesses, reduce reliance on credit, and even stop depending on cards as a physical item.
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.