3 pitfalls to avoid when choosing payment methods for business
Let’s say the moment when it’s time to choose payment methods for your online store or service has come. To say this choice is vital would be an understatement. The versatility and convenience of payment methods influence your customers’ experience. If they feel uncomfortable while paying at your website, there are no two ways about it — they slip away to competitors.
Today the number of online payment methods has exceeded a hundred: bank cards, e-wallets, mobile accounts, terminals, internet banking — and that’s not all. We at Corefy understand what to look for in this matter and are ready to share the insights with you.
Influence on conversion
Needless to say, choosing the right payment methods increases the chances of conversion. And the latter, for sure, is the primary goal of any business. The effect you should strive for must be something like “Wow, that’s so easy?” from your clients when they see the payment page.
Europe, the USA, Canada, and a number of developed Asian countries prefer various banking services (and they are well developed here). Africa is usually looking towards mobile and cash payments, while South America uses a range of different payment methods. In addition, each country has its own specifics. So, the choice of payment methods should start with an understanding of which markets the company will cover, which payment services are available in them and which ones are preferred.
The only case when you can snap your fingers at this important choice is when you sell some rare products or provide exotic services (or perhaps just have extremely attractive prices). It might stimulate a customer to open an account in an unusual payment system. But, as a rule, if a customer doesn’t find the preferred payment method on your payment page, you will simply lose him or her. One small check might seem to be a small loss, but if you lack a really important method, your business will result in a large stream of lost profits.
2 factors to consider when choosing payment methods
Creating a customer avatar, don’t forget to analyze these factors: the goals your client pursues, the media your client surfs, the pain points he wants to refrain from, and, for sure, the preferred payment methods. The omission of the last point, unfortunately, decreases the sales volumes and nips your business success in the bud. So, while trying to detect the appropriate payment methods for your business, mind the following:
- Audience location. Understanding the geography of your target audience is a must. It would help you sift the necessary payment methods quicker.
- Age. One more essential criterion to pay attention to while choosing the right payment methods. For instance, Generation Z (born from 1997 to the early 2000s), as well as millennials, prefer to pay via mobile. The older generation prefers card payments.
Top payment methods for international sales
Global expansion is in your action plan? Are you looking to cover several foreign markets? Pay attention to the following global payment methods:
- Credit cards remain one of the most popular payment methods in the North American market. This method remains one of the most preferred to use both online and at the point of sale. So, if a part of your customers in the global market is from this region, it is feasible to provide them with a credit card payment option.
- Online bank transfers hold the position in Germany, Sweden, Netherlands, Poland, Malaysia, and the Philippines. Excellent internet penetration in these countries promotes online shopping and makes online bank transfers one of the most convenient payment options for consumers.
- Mobile payments are picking up pace, this is cold news. No surprise it’s Generation Z and Millennials who are leading the way. Statistics prove the popularity of this payment option across the globe: 1 billion people are predicted to use mobile payments in 2020, and by 2023 this will grow to 1.31 billion. As a matter of interest, the high penetration of mobile technologies in Africa has led to mobile money becoming the preferred payment option in many African countries.
- Alternative payment methods. In the early days of e-commerce, shoppers had to adapt to the options provided by the merchants. Now the situation is completely different. Customers set a high value on convenient shopping and checkout. And merchants have to be responsive to their wishes if they want to win the competition. For instance, if a chunk of your audience is from China you’d better support such alternative payment methods as AliPay and WeChat Pay. M-Pesa would be great for African customers and Yandex Money — for Russian.
Watch out: 3 pitfalls to avoid
Giving little attention to these points will have a negative impact on your sales.
1. Inappropriate payment methods
The wrong geography of your audience is what can become the main enemy of your business. This might cause you to offer inappropriate payment methods. So, be sure to pay special attention to this point. If you already offer Visa and MasterCard payments, think of adding local or specific alternative payment methods.
2. Irrelevant payment options
“The more, the better” rule doesn’t work here. Offering all possible methods is quite resource-draining and won’t help you succeed.
3. Neglecting mobile banking
Mobile banking is on the rise now, so you’d better not underestimate this method. According to statistics, in 2023, it is estimated that there will be 1.31 billion proximity mobile payment transaction users worldwide, up from 950 million users in 2019.
It will be very useful to keep track of the latest developments in the field of digital payments, so as not to miss a new service that is gaining popularity.
Payment methods at Corefy
One of our clients’ primary tasks is to provide an excellent checkout experience for their clients. We understand that and aim to provide you with the necessary payment options, not only the most sought-after ones.
Our platform supports all payment methods across the globe, including credit cards, e-wallets, cryptocurrencies, and bank transfers. It means that a single integration with Corefy grants you access to connectors with 250+ payment methods. In case you need to support a rare payment method preferred on some specific territory, our team will provide such a connector in the shortest possible time.
Contact us to know more. We’ll help you pick up the most relevant offer for your business.