Not too long ago, cash and credit cards were the standard options for businesses. However, times have changed thanks to technological advances, e-commerce, and the rise of mobile wallets. Today, meeting customer’s expectations means offering various payment methods. These options include mobile wallets, autopay, cryptocurrency, buy-now-pay-later (BNPL), and bank transfers, in addition to cash, credit cards, and debit cards.
Businesses that accept various payment methods can increase customer satisfaction, leading to overall better customer retention. Are you curious to know why? Here are three reasons why and a breakdown of how to integrate the best payment options for your business — and customer — needs.
1. Increase in Trust and Credibility
Everyone has a preference, especially when it comes to their finances. Customers who are presented with a payment option that suits their preferences are more likely to complete a purchase. However, if their payment option is not listed or not accepted then they may abandon their cart and look for a competitor site. Having various payment methods available demonstrates your company’s flexibility while also showing that what matters to customers, matters to you.
This boost in trust and credibility isn’t just for online purchasers. The same goes for invoicing clients and providing them with various options. For example, a client may hesitate if you only accept mail-in checks as they may be nervous about sending money through the mail. Going to your physical office and dropping off a check could be a barrier, especially if the service is completed remotely. Instead, it’s advantageous to offer secure third-party payment services in addition to checks to simplify the payment process and put their mind at ease.
2. The Convenience Factor
Customers have little patience for a lengthy checkout process. Once they’ve made up their mind on what they’re going to buy, they want to buy it quickly and seamlessly. An online store that doesn’t offer a customer’s preferred payment method or store their credit card information for future use is only hurting their chance of making a sale. A customer may quickly jump ship and find a competitor if the checkout process is too cumbersome.
Individuals have different inclinations in terms of how they like to pay. Some will always prefer to use their credit card because they know they’re earning rewards points via their credit card company. Others may want to use a third-party app such as Venmo or PayPal so they aren’t sharing their credit or debit card information with a retailer. Regardless, businesses that offer a range of options are making it easier for customers to complete their purchases, thereby increasing their overall satisfaction.
3. Customer-Focused
It would be remiss not to mention that having various payment options inevitably puts the customer first. In the long run, it doesn’t matter which option they choose, as long as you get the sale. For them, however, they may have a favored method based on their spending habits, lifestyle, or other factors. For international buyers, having multiple options that they can use also shows that you are open to global business and want them as customers. Accepting PayPal, which is available in 200 countries and supports 25 currencies, is a great start as is allowing for Amazon Pay.
By offering a range of methods, you’re demonstrating first-hand that you are focused on the customer and want to accommodate their needs. Customers who are satisfied with the transaction process (in addition to the product or service they received) are more likely to return. They may even talk about your business with their social groups. This is why being customer-focused can lead to better customer retention and increased satisfaction.
Best Practices and Tips for Integrating Multiple Payment Options
Choosing the right payment methods can define your success, from both a business and a customer satisfaction perspective. Knowing which payment methods to accept may require some research and forecasting. Analyze your targeted demographic and get a sense of which payment methods they’re more apt to use. Then, look at the cost-benefit analysis of offering these specific methods. Some payment methods have steeper transaction fees, implementation costs, and other expenses.
At the bare minimum, keep privacy and data protection in mind. Customers expect a safe, reliable checkout process. In addition to leveraging payment methods that prioritize privacy such as PayPal, Apple Pay, and Klarna, include any relevant security seals on your checkout pages. These badges tell customers that your checkout process is safe and that their money and data will be handled with care.
Once you’ve selected your payment methods and looked into their privacy credentials, you’re ready to integrate them into your website. You’ll want to start by selecting a payment gateway that is relevant to your business. A gateway is the technical component of how the payments will be processed. It’s a secure, fast, and efficient way for the transaction of funds from your customers to your business to occur. Make sure the one you choose is compatible with your site and covers your customer profile, especially if you’re marketing to international buyers.
Final Tips and Takeaways
Offering multiple payment options can significantly increase customer satisfaction. It can build your brand’s trust and credibility in the market and show that you are customer-focused. It will also simplify the checkout process, making it easier for customers to complete a purchase. So while onboarding multiple options takes some homework on your end, the payoff will be well worth the effort.
