Choosing Payment Providers for Online Store: The More, the Merrier?

The payment issue is one big problem we cannot overlook in e-commerce. Customers can halt the buying process if you don’t offer their preferred payment method. Many online stores accept credit cards because most online shoppers prefer them. Technological advancement has brought about the development of many seamless payment options.

Providing your customers with multiple payment options boosts the customer experience and improves the business. This article will discuss how having more payment providers is beneficial to your e-commerce business. Read on to find out more!

What Are Payment Service Providers?

A payment service provider is a third-party company that allows online stores to offer various online payments to their customers. They offer payment options like online banking, e-wallet, cash cards, debit cards, and credit cards. They ensure the customers’ transactions get safely to the store owner without hassle. Examples of payment service providers include:

• PayPal
• Google Pay
• Amazon Pay
• Square
• Apple Pay
• Toast
• Stripe
• Kiarna
• Google Wallet

Why Should You Have More Payment Service Providers for Your Business?

Advantage Over Competitors

By offering different payment options, you have an advantage over your competitors. For example, suppose a customer prefers PayPal. In that case, the person will not patronize you if you do not have PayPal payment options. They would instead shop with your competitors.

Opportunity for New Markets

Multiple payment options are equivalent to potential new markets. Different payment options lead to increased conversion rates, but certain factors like culture must be considered. In the Netherlands, customers prefer to pay locally. However, they prefer the post-purchasing payment method in Germany, where they pay after getting their goods. But in China, the most prominent payment method is through Alipay.

Remove Reliance on Current Payment Services

What if your payment service provider decides to increase commission or create a policy you’re uncomfortable with? What would you do in that case? Whenever a provider’s policy commission is favorable, you can easily switch. That is why it is better to have more than one payment option or payment provider. It prevents unexpected future disappointment.

Attracts New People

One good way to drive new customers to your online store is to show that you offer multiple payment options and embrace the latest technology. Doing this will increase sales and revenue, but it’ll also drive new people to your store. When people see that your store has their preferred payment options, they’ll keep coming.

Breeds Trust

Some customers still feel insecure about making payments online, and because of this, they prefer other means of payment. Offering several payment methods puts your store out there as trustworthy. This is because you’re considering your customers’ security preferences and needs.

PayPal gains trust through association. The more payment options, the more your store looks legit and professional. Having more than one payment option/payment provider signals a green light to customers.

Reduced Cart Abandonment

6% of online shoppers will most likely abandon their cart if they can’t make payment in their preferred way. Offering multiple payment options will reduce cart abandonment and ensure that customers complete their transactions. Reduced cart abandonment leads to an increase in sales and revenue.

Final Thoughts

If you use SaaS website builders like Shoplazza, Shopify, Wix, etc., you can integrate many payment providers they collaborate within just a few clicks. If you build your store with WordPress, you may need to deal with payment providers yourself.

Customers love having options. Accepting different payment options shows your customers that you care about them and their choices when visiting your store, and choosing the best payment service providers will take your business to the next level.

(Contributed by Ayotomiwa Omotosho & Hermes Fang)