“Estimates suggest that alternative payments will account for 59% of all online transactions in 2017”
A common driver of shopping cart abandonment is the lack of support for preferred payment methods, a fact supported by the ever-increasing proportion of online customers that choose alternative payment options at the checkout stage.
Consequently, effective e-commerce needs to be underpinned by the offering of multiple payment methods to give the customer choice. Not only does this help retain customers and convert leads into finalized sales; it also allows for an international market reach. Explored below are several examples of alternatives you can incorporate into your checkout process to minimise cart abandonment and maximise sales.
According to a report conducted by Javelin Strategy and Research, PayPal was consistently used by 87% of the questioned respondents; the service boasts use by over 130 million registered customers across 26 currencies and 193 countries. With such a vast user-base, failure to incorporate PayPal into payment options relinquishes the opportunity to convert leads into sales at the checkout stage. PayPal is but one option in the E-Wallet market (albeit a dominator); there exist many other alternatives, some of which are mentioned below.
“E-wallets are the fastest growing payment type around the world”
E-Wallets are essentially digital wallets that allow for heightened safety (through heavy encryption) and convenience in the completion of online purchases. Examples of E-Wallet providers include Google, Amazon and the aforementioned, PayPal – these providers act as intermediaries, mitigating the risk posed to merchants using their services by accepting all liability for the customer’s security.
For merchants specifically, a further benefit of offering E-Wallet use is its automation of the form-filling process many customers have to go through in order to complete a purchase. By using the securely stored personal data to auto-fill forms, customers can successfully checkout in a faster, less convoluted way: this is especially relevant given the fact that labourious checkout processes have been identified as a driver of shopping cart abandonment.
Whilst direct debit is not a viable option for all merchants, for those it is applicable to, this payment option offers mutual convenience for both the merchant and customer alike, automating the payment of recurring purchases (such as subscriptions) in such a way that it allows for a more predictable inflow of cash for businesses.
Merchants can capitalize on country or market-specific payment preferences by offering a wide range of options including mobile payments (such as direct carrier billing for digital goods), e-vouchers, coupons or locally used debit cards.
Financing and Leasing
Businesses can drive increased sales by offering leasing and financing options to customers as a method of payment. This is particularly effective in a B2B context where the implications of insufficient cash flow are exacerbated. Through offering leasing as a means of payment, customers are offered a flexibility rendering them much less likely to abandon the sale altogether due to an ability to commit to a single, full payment.
Ultimately, the above all serve one purpose: converting intention into sales. Offering alternate payments is but one of many ways through which your business can reduce shopping cart abandonment. To access our 8 top tips for preventing shopping cart abandonment, please click the button below.