Majority of the customers will cancel their purchases immediately if they do not see any payment method that they fancy. Customers feel very comfortable when purchase from online merchant that offers multiple payment solutions. However, many online merchants are unaware of the advantages of having a payment gateway on their website. Many of online merchants lack alternative payment methods, the percentage of online buyers is increasing rapidly.
More and more customers prefer online purchase and seek for different payment options. Preferably, provide most of the customers’ favorites payment methods. It will be easier for them to make payment. Why it is so important to provide customers with multiple payment options? Now, we’ll look at the reasons behind all of this.
1. Retain Existing Customers
Retaining existing customers will always be much easier and cheaper than recruiting new customers. Existing customers usually have their go-to payment method but however it does not mean that they will continually use the same payment method. They’ll change according to what is convenient the most or according to current situations at that time of payment. Apart from that, they’ll like new payment method that they just discover and like it more than what they had previously.
Hence, do offer new payment methods to customers even though the customers have bought from you for years. Customers want to see changes and something new and fresh. Same old thing can be boring. Thus, it is advisable to do some research and survey regarding on payment preferences of existing customers.
2. Attract New Customers
Millennials can be very potential to be your new customers and they embrace the digital payments such as eWallet more than the elder customer. Elder customers prefer the traditional ways of payment like cash, debit card and bank transfer. Best way to attract these new customers is by illustrating that your company does embrace the current technology and will always attempt to use new inventions and technology.
Each different payment method is bound to appeal to the entire range of customer preferences for payments. It provides the leverage to win over more people and increase sales through this aspect of the ideal customer experience. Additionally, you can not only attract domestic customers but you can also attract international customer because some of the additional payment options you add can handle multiple currencies and align with the payment standards in other countries.
3. Increase per sale size and frequency
Usually retailers that offer multiple payment options have big sale size and frequency as more customers and business will purchase more. On the other hand, certain payment methods benefits customers. Customers can sometimes receive incentives like coupon or rebates. With these incentives, they will like your business more as they can save more and get extra benefits.
4. Raise cash flow
Various types of payment methods settle over the course of different time periods. You may not able to see your funds in your account if you rely on one type of payment method only. So, multiply it. In the meantime, taking other payment methods like cryptocurrency, direct debit, and e-cash delivers almost instantaneous receipt of funds so you can keep your cash flow topped up at all times – a key tactic to sustain your business through all cycles.
5. Decrease overhead costs
While some payment acceptance methods come with significant fees, you can lower your overall costs by spreading out payment acceptance to include those low or free options. Over time, this diversification can reduce what you would have spent just offering one payment type.
This can add up quickly as more fees are being tacked on to payment methods like credit cards, especially if you are a small business owner with lower transaction volume or you are in a high-risk industry. Your bottom line will appreciate that you are willing to make the foray into new payment methods that don’t charge the same level of fees.
Surely by right you have known the reasons behind why you should adopt multiple payment methods to your business. If you need a payment processing partner, feel free to reach us at MOLPay.