In the world of e-commerce, there is nothing more important than conversions. The conversion rate of an e-Commerce website is the percentage of visitors who take a desired action, such as making a purchase.
One of the most critical factors influencing conversion rates is the availability of multiple payment methods on the checkout page. This blog post will discuss the importance of offering multiple payment methods and provide recommendations to improve your webshop’swebshop’s conversion rate.
Why should you offer multiple payment methods?
- Meet customer expectations:
Offering multiple payment methods is becoming increasingly important as customers are becoming more demanding and expect more flexibility in how they pay for products and services. You can meet your customer’s expectations and improve their shopping experience by offering various payment options. Did you know that the preferred payment method in Denmark continues to be Card Payments with 45% of all payments? However, in recent years mobile payment apps have gained a larger market share, and today the payment method is the second most popular payment method in Denmark, with 41% of all payments.
2. Increase sales:
Offering multiple payment methods can increase your sales by making it easier for customers to purchase. By providing various payment options, you can accommodate different preferences and make it more likely that customers will complete their purchases.
3. Reduce cart abandonment:
Cart abandonment is a significant problem in e-Commerce. Many customers add items to their cart but then abandon their purchase during checkout. By offering multiple payment options, you can reduce the likelihood of cart abandonment and increase your conversion rate.
Did you know that Swiipe offers a service called, Win-back that tackles online purchases that fail due to failed payments? Numbers from Dansk Erhverv show that approximately 25% of all Danish online purchases experience technical issues that fail their payment. With Win-back, customers receive a message informing them of the failed payment while providing them with a link to a restored basket. As a result, the service wins back close to 20% of failed payments.
4. Cater to local payment preferences:
If your webshop operates in multiple countries, it is essential to offer payment methods that are popular and widely used in those countries. Customers are more likely to complete a purchase when they can use a payment method, they are familiar with and trust. By offering local payment methods, you can improve the shopping experience for customers in different countries, ultimately leading to increased sales and customer loyalty.
In today’s competitive e-commerce market, offering multiple payment methods is essential for improving customer experience, increasing sales, and reducing cart abandonment. Moreover, if your webshop operates in multiple countries, it is crucial to cater to local payment preferences and offer payment methods that are widely used and trusted in those countries. By doing so, you can meet your customers’ expectations, provide a seamless shopping experience, and increase the likelihood of completing purchases, leading to business growth and increased revenue.