Alternative Payment Methods – A Sure Way Of Increasing Online Conversions & Sales
When we talk about conversion rates, we actually mean the percentage of visitors who get end up buying from your eCommerce store. Hence, the focus of many online retailer is to increase the traffic on their site, so that they can raise the conversion rates. However, there is another method by which you can optimize the conversion rates to their website. This is possible by maximizing the number of payment options that you offer to your potential customers. The logic that works here is that it is easier to double the amount of sales from the customers who are already visiting your website, rather than trying to double the number of visitors to your site.
Thus, you are only making your visitor’s life easier by offering a variety of payment options. The more difficult you make your website to use, the more barriers you actually put in place, and this makes completing the checkout action problematic. The two options that most website owners immediately think of are debit and credit cards, but there’s a problem here. Many card owners do not want to use their cards online, and not every body has a credit card. Many owners are afraid of using their cards online for many reasons such as security or fraud concerns.
Presently, there are various alternative payment choices that are available from recognizable brands. Some of the more popular ones are V.me by Visa, MasterPass by MasterCard, Google Wallet, and PayPal from eBay. Several other payment methods are available, such as re-loadable prepaid cards, virtual account numbers, controlled payment, and Amazon Payments.
Now that several payment options are available, you risk losing potential sales if you do not offer alternative payment options. According to a recent survey conducted by a UK-based international Internet market research firm, 50% of regular online shoppers would cancel their purchase, if their preferred online payment method were not available for use. Additionally, over a third (40%) of the participants said that they would feel more comfortable from online retailers who offered multiple payment methods.
WorldPay, a payment processing company, mentions that alternative payment methods, not including traditional credit or debit cards, will account for more than half (59%) of all transactions by 2017. Digital wallets alone are expected to increase to 43% of market share by 2015. Even currently, PayPal is in use in more than half of the market. Therefore, if you enable customers to pay with specialized mobile payment solutions, or even local payment alternatives, this helps to maximize global transaction success via global customer reach, thereby increasing your store’s conversion rate in the long run.
Hence, the more payments you make available, the more customers your online store will have access to, meaning thereby that more purchases can be made. So, when you add a range of additional payment methods, you do not restrict your customers to make their purchase with their credit cards. Therefore, eCommerce merchants who recognize this important aspect about purchasers having different preferences while making a purchase, will take the lead compared to others.
The more payment methods available, the more customers an online store has access to, the more purchases can be made. Adding an array of additional payment methods means that customers aren’t restricted to solely using credit cards in making a purchase. eCommerce merchants who recognize and appreciate that different customers have different preferences in making online transactions will come out ahead. It makes sense to provide multiple payment methods and appeal to as many potential customers as possible. Hence, utilize