Did you know that various payment methods impact the conversion rate? As an e-commerce store owner, your to-do list seems like a never-ending one. In fact, it’s a lot, from constantly finding new ways to optimize your site, to increasing your average order value and keeping up with all the metrics that come with having an e-commerce store.
Increasing your conversion rate is always a priority on the list. But, do you know what things can influence your rate? Well, you may be surprised to know that by offering fewer payment methods, you can actually negatively impact your conversion rate.
There is a correlation between payment methods and conversion rates. So, here’s everything you need to know
The Importance Of Conversion Rates
As a merchant, you are already familiar with the concept of conversions. It’s when your browser or visitors to your website turn into paying customers. Getting shoppers to your website is one thing. Getting them to add to their shopping cart and make a purchase is a whole other ball game. Customer purchases are what make your business grow.
Put it this way, the higher your conversions are, the more revenue you have.
Conversions And Payment Methods
You have worked super hard to create the best customer, and user experience. You’ve optimized every single page on your website, making it browser-friendly, mobile-friendly, etc. Basically, you have done everything to ensure your customers have a seamless shopping experience. Until they get to your checkout page and see that you don’t have a wide range of payment options. All your hard-work gets lost with one click, literally.
You see, the payment options you have available are the make or break of your sales. It’s that simple. Payment methods will determine whether your customers will go ahead with the purchase or abandon their shopping cart.
But why?
Shopping carts are abandoned across all types of businesses. In fact, the rate is about 74.2% across different Industries. One of the main reasons why people abandon their carts is the lack of payment options available. Luckily there are some actionable steps that you can take to fix this and increase your conversion rates.
Choose The Right Payment Methods
It may seem relatively straightforward, but the reality is there are over 200 payment options available. Not only that, but they come in many forms. This is where your customer data and traffic metrics come in. Knowing where the more charity of your shoppers come from you can give them the most preferred payment methods.
The bad news is that shoppers abandon their carts and you can never know precisely why. However, there are a number of common reasons, such as they found another item or affordability aspects. The good news is that there is data that can point you in the right direction.
According to a study by Baynard, 50% of shoppers abandoned their cart because they couldn’t afford it.
This is where BNPL consumer financing from ChargeAfter.com comes in. Buy Now Pay Later is now one of the most popular methods of payment. More importantly, shoppers actively look for this method in the purchasing decision. Even though this option has been around for years, The customer demand for Buy Now Pay Later has increased significantly.
The global pandemic helped push the surge of BNPL too. Giving the customer the option to buy still buy the products they wish while staying within their budget. The other great thing about the Buy Now Pay Later is that it can be easily integrated into your checkout process, making it much easier for your customers. Plus, it also presents you with the opportunity to upsell more of your products and services, build long-term relationships with your customers and, of course, increase your conversion rate.
But that doesn’t mean that you should abandon other payments. Make sure you have the most popular payments available still such as:
- Visa credit and debit cards
- American Express
- Paypal
- Apple Pay
- Google Pa
- Amazon Pay
basically, whichever payment option your customers like, make sure you have it on your checkout page.
The Bottom Line
The more payment options you offer, the fewer reasons your visitors will have not to buy. Just remember to optimize your website and provide a seamless shopping experience that will make it very hard for your customers to click away without making a purchase.