August 7, 2023
In today's fast-paced world, where online shopping has become the norm, e-commerce businesses are constantly seeking strategies to boost conversions and minimise cart abandonment. One crucial factor that can make all the difference is the introduction of a diverse range of payment options during the checkout process.
In this blog, we'll explore the transformative power of offering multiple payment options and we'll also delve into the effectiveness of instalment plans and Buy Now Pay Later services. Offering multiple payment options can be a game-changer, not only enhancing convenience and customer preference but also building trust, empowering customers with flexibility, and seizing global opportunities. So, let's embark on a journey to understand how embracing a wide range of payment options can elevate your e-commerce store's performance.
When it comes to online payments, convenience is key. By providing customers with a variety of payment options, you cater to their preferences and enable them to choose the method that suits them best. We’ll be providing you with some payment options to consider implementing in your store’s checkout process. By incorporating these trusted options, you eliminate barriers and ensure a smooth payment process for your customers, increasing the likelihood of completing transactions and reducing cart abandonment.
Credit and debit cards remain the most popular choice for e-commerce stores, as they offer familiarity and convenience. According to PPRO, in the European region, card payments accounted for 45% of all online transactions. This highlights the prevalence of card payments and the importance of including this option in your e-commerce store.
Alternative payment methods like digital wallets, such as PayPal and Apple Pay, have gained traction due to their seamless and secure checkout experiences. In fact, PayPal has solidified itself as a trusted and widely used payment method, making it a must-have option for your e-commerce store. User statistics taken between 2020 and 2021 revealed that an astounding 91% of UK online shoppers made at least one PayPal transaction during that period. This high adoption rate reflects the strong trust that UK consumers place in PayPal for their online purchases.
While attracting new users is crucial, businesses should also focus on retaining existing ones. More recent statistical data reveals that frequent or returning users of PayPal in the UK are significant, with approximately 76% making repeat transactions. This highlights the loyalty and satisfaction of customers who choose PayPal as their preferred payment method. Additionally, PayPal's Buyer Protection program provides an extra layer of security, further reassuring customers that their purchases are protected. This added security contributes to increased customer satisfaction, encouraging repeat business and word-of-mouth recommendations.
Apple Pay is a highly respected payment option that caters to customers from around the world. Backed by one of the biggest global brands, Apple, customers trust the security and reliability of this payment method. Apple Pay’s adoption of online payments in the United Kingdom has significantly increased from 2018 to 2023, indicating its increasing popularity as a trusted payment method among consumers. A study from Statista shows that the use of Apple Pay in online shopping has gone up from 13% in 2018 to 35% for Q1 of 2023.
The seamless and straightforward checkout process of Apple Pay eliminates the need for customers to manually enter their card details, reducing friction during the checkout process. Customers can easily complete their transactions with just a touch or glance, using their fingerprint or Face ID for authentication. This level of convenience translates into higher conversion rates and reduced cart abandonment. Furthermore, Apple Pay prioritises the security of transactions. Each purchase is authorised with a one-time unique dynamic security code, ensuring that customer card information is never shared with merchants. This added layer of security builds trust among customers and minimises the risk of fraudulent activities.
Similar to Apple Pay, Google Pay is a hugely respected payment option catering to customers from around the world and is backed by one of the biggest global brands. Google Pay has witnessed a steady increase in its user base, with over 150 million monthly active users globally as of 2021, indicating its widespread adoption. In the UK, Google Pay is one of the most popular mobile payment platforms, with millions of users making secure and fast transactions through the service.
Just like Apple Pay, Google Pay offers a smooth and simple setup process for users. Customers can easily link their payment cards to their Google Pay account and start making transactions quickly. The convenience of this payment method encourages customers to complete their purchases swiftly, boosting conversion rates for your e-commerce store. Furthermore, it's worth noting that Google Pay takes security and fraud prevention seriously. If there's any sign of suspicious activity on a user's account, the Google Pay team will take appropriate measures to safeguard their funds, ensuring a secure payment experience for all customers.
Flexibility is a key factor in attracting and retaining customers. Instalment plans and Buy Now Pay Later services have emerged as powerful tools for boosting conversions. PayPal Credit and Klarna, for example, enable customers to split payments over time or defer them entirely. This flexibility empowers buyers to make purchases without straining their budgets. By embracing these payment options, you tap into the desire for flexibility and affordability, making it more likely for customers to complete their transactions. Let’s explore why these options can help increase your store’s conversions.
Klarna, one of the leading providers of Buy Now Pay Later services, has redefined the shopping experience for customers. With this option, shoppers can select the items they desire, proceed to checkout, and then decide how they want to pay. The appeal of Buy Now Pay Later lies in the freedom it offers customers to try products before committing to a full payment. This flexibility translates into reduced cart abandonment rates, as customers feel more confident about their purchases.
According to a recent study, 50% of UK shoppers say that the availability of Buy Now Pay Later options encourages them to shop more frequently and spend more per transaction. So, for e-commerce businesses, integrating Buy Now Pay Later services into their checkout processes can lead to a significant boost in conversions and increased customer satisfaction. By giving your customers more control over their payments, you empower them to shop with ease, resulting in higher engagement and repeat business.
Instalment payment options are another game-changer in the world of e-commerce. By breaking down the total purchase amount into smaller, manageable payments, customers can make more substantial purchases without feeling financially burdened. Instalment Payments offer customers the flexibility to spread their payments over a set period, often interest-free. This payment model is especially appealing to budget-conscious shoppers, millennials, and Gen Z customers who appreciate the convenience of managing their expenses over time.
According to a survey by Klarna, 68% of UK consumers prefer payment methods that allow them to spread the cost of their purchases over time. By embracing a service like Klarna's Instalment Payments, you tap into the desire for financial flexibility, making it more likely for customers to complete their transactions. Businesses that offer this payment option have witnessed an increase in average order values and customer loyalty, as shoppers are more likely to return for future purchases.
In the dynamic realm of e-commerce, where competition is fierce, optimising your payment options can be a game-changer. By offering diverse payment methods you cater to customer preferences and convenience. By empowering your customers by providing them with more flexibility, you will experience an increase in conversion rates and reduced cart abandonment.
If you want to take your e-commerce store to new heights and explore the transformative power of multiple payment options, we are here to help! Book a free clinic with our team, and together, we'll identify the most suitable payment options for your business. We will also provide valuable insights to improve your conversion rates through the customer journey, ensuring your customers have an exceptional shopping experience. Don't miss out on this opportunity to grow your business and delight your customers. Book your free clinic today!
