Have you noticed an increase in the cart abandonment rate on your ecommerce store? Are visitors dropping off of your checkout page? If you’ve answered yes, you need to examine the check-out process on your e-commerce store.
While a long check-out process is a huge factor behind cart abandonment, the lack of payment options is also equally responsible for visitors not completing their purchases on your store.
Payment gateways are vital to every e-commerce business as is choosing an appropriate payment gateway for your e-commerce store. While choosing just one seems like a simpler idea, it will hurt conversions.
Having multiple payment options on your e-commerce store will improve conversions and your brand image. Below are five top reasons why your e-commerce platform should have multiple payment gateways.
1. Increase geographic coverage
The services of different payment gateways vary according to geographical locations. If you want to expand your business internationally, multiple payment gateways let you handle customers from different countries, paying in different currencies.
The popularity of a payment gateway varies in different countries.
For example, PayPal is popular in the United States, Europe and Australia. While MPesa is huge in many countries in Africa, and credit cards are the top option in the United States.
To be successful in different regions, you will need to offer payment methods that the locals know and are comfortable using. This will increase the trust value of your online business, especially if you’re venturing into new markets.
2. Enhance user experience
“70% of customers say they have abandoned their shopping carts because of bad user experience”.
User experience is an individuals response to any product or service, how it makes them feel and the ease of interaction. Many components make up a great user experience design. The checkout process, or rather the simplicity of it being a vital one.
Your inability to accept online payments in ways that your target market demands will lead to mistrust and damaged user experience.
Multiple payment gateways offer users a smooth checkout process. They enhance users’ interaction with your e-commerce store, increase goodwill and customer lifetime value.
3. Shoppers can use their favorite method
Online shoppers usually have a preferred payment method. Customers choose their payment method based on their credit card points, wallet money, automated clearing process, etc.
Different demographics like to pay in different ways. Millennials frequently use PayPal while Generation X (people born between 1965 and 1983) prefers credit cards.
In 2018 transactions conducted via eWallets alone were estimated to a total of 41.8 billion globally. While in the United States credit cards are still the number one choice for online payments
Multiple payment gateways offer customers a broad spectrum of payment options and allow them to use their favorite payment method.
The availability of a favorite payment method increases customer loyalty and brings them back to your e-commerce store for another purchase.
4. Your customers feel safer giving you their data
Your customers’ transactional data and privacy is your responsibility, and security is a top priority for a payment gateway. Hence you must ensure that any payment gateway you sign on with is PCI compliant.
“19% of customers said they abandoned websites at checkout because they didn’t trust the website with their credit card details”.
Multiple payment gateways create a sense of security and trust for your customers. For example, popular names like PayPal have trust value, which translates to your business by association.
The more payment gateways you offer on your e-commerce store, the more legitimate and trustworthy your online business is perceived.
5. Improves conversion rate
Offering the top three payment methods in any country improves the conversion rate on your ecommerce store by 30%.
Multiple payment gateways add to a better shopping experience, thus decreasing the rate of users abandoning their shopping carts.
Customer loyalty and repeat customers is another way to increase the conversion rate on your online store. 30% of Amazon’s revenue is through repeat customers. Repeat customers are those who’ve had a satisfying user experience the first time they shopped on your store.
Payment gateways have different features and services they offer, like one-click conversions, no-redirects, express checkout etc. which increase conversions on your e-commerce store. Multiple payment options help in giving shoppers an enhanced user experience and converts them to a buying customer.
Apart from these benefits, multiple payment gateways act as each other’s backup. In case of any technical glitch with one payment method, you won’t have to shut shop till you sort out the problem.
Payment gateways are critical for your customers’ purchases on your e-commerce site. They communicate that you care about their convenience, preference, and security.
Sites with multiple gateways secure more purchases than sites with single payment options. They also have a higher rate of repeat customers. So, choose your payment gateways wisely and study their pros and cons to find a good combination.
If you’re looking for an e-commerce platform that comes integrated with multiple and secure payment gateways contact us at VARStreet.