While offering just a few different payment options may have worked before, with today’s ever-evolving consumer, it’s more important than ever to have more than just one or two options. The consumer expects multiple options when making a purchase nowadays. Transactions have changed, and with new technologies and different expectations, it’s important to offer a variety of payment methods to make it possible for all potential consumers to be able to choose their preferred payment method.
Why You Need to Offer a Variety of Payment Methods
There are a lot of benefits to offering different payment methods which go beyond just making sure the consumer can pay. Offering a variety of payment options has a lot of benefits for your business. Some of the biggest include:
A larger consumer base. When you offer a variety of options, you’re opening up your business not just to your community or the country, but the entire world. The more payment methods you make available, the more you open your consumer base.
Higher customer retention rates. Failed transactions or issues with your processor can cause customers to abandon their purchases. With more payment methods available, they’ll be more likely to try using a different method to get their order to go through instead of abandoning their cart.
More sales. When you eliminate the friction of only offering payment methods your customers aren’t comfortable with or don’t use, they’ll feel more comfortable making large purchases from your company.
The Different Kinds of Payment Methods You Should be Offering
eChecks – Checks may seem like an outdated way to pay for things like groceries or services from a big, commercial company. They’re used more commonly for things like paying the babysitter or reimbursing a family member, right? Traditional checks may not be used as often anymore, but thanks to eChecks by Deluxe, electronic checks have a lot of benefits.
eChecks make it possible to send and receive checks electronically; when you’re ready to cash a payment, you can print the check and deposit it at your bank, just like you would a standard check. There are a lot of benefits for businesses that use eChecks, like better control of cash flow, anywhere access, a complete historical record, and more. On top of all that, they’re better for the environment, too.
Venmo and PayPal – Peer-to-peer transaction services like Venmo and PayPal make payments super easy for family members who want to send money to each other and for people who need to pay for goods and services quickly. They are also a popular way for international consumers to pay, so it’s especially important to offer these services if you do business internationally to ensure all your customers are able to make a purchase.
Apple and Google Pay – Apple and Google have both developed payment methods customers can use to complete transactions. The Apple and Google Pay options make it so customers don’t even have to enter card information or swipe their card through a machine. They can simply wave their phone over Apple and Google Pay enabled devices or connect their account to their computer to make checkout hassle-free.
Digital Currency – Digital currency, or cryptocurrency, has become more popular in the last couple of years. More consumers are collecting digital currencies like Bitcoin and Ethereum and want to use them in lieu of cards or cash. Like Venmo and PayPal, digital currency is a great payment option for international customers, since it’s not subject to exchange rates and can be transferred instantly.
Gift Card – If you offer gift cards, it’s important you make it possible to pay with gift cards online. Gift cards are a great way to help someone spend money on themselves at a business they might have otherwise passed on due to time constraints, budget, or other factors. If you don’t let them use their gift card online, it may mean they won’t end up shopping at all.
Money Transfer – While it may not be practical to accept money transfers if you’re running a retail clothing business, if you’re a business that does transactions with other businesses—especially those that are international—then a money transfer should be a payment method you offer.
Offering just one or a few payment methods won’t cut it anymore—the wider variety of payment methods you offer, the more customers you’ll be able to bring in and the more sales you’ll make. You’ll likely see more satisfied customers who are glad to find a company that offers their preferred payment method and will feel more loyalty toward your brand.
If you’ve been avoiding adding more payment options for any reason, stop and find out what a difference multiple payment methods can make.