Are you looking for a simple way to increase your e-commerce sales and grow your customer base beyond existing clients? Integrating multiple payment options can help do just that, and bring even more benefits to your business.
But randomly choosing payment methods is not the way to boost your business. Choosing the right payment options requires careful research to find out how your target customers prefer to pay. Thorough research can help you avoid various risks. Did you know that some payment methods can incur extra costs for your business, while other options may compromise your security?
Find out which payment options are the best for your business and how they can help your company generate more revenue.
The benefits of multiple payment options
Offering multiple payment options brings various benefits to e-commerce businesses. Here are just a few of them:
1. A better customer experience
Statistics show that 9% of online shoppers will abandon their carts if the checkout lacks their preferred payment options. Integrating the most popular payment methods into your checkout can improve your customer experience.
Some payment methods, such as account-to-account payments, play a significant role in improving the customer payment experience. The direct bank payment method reduces checkout friction and simplifies the payment process.
2. Higher conversion rates
A broader selection of payment options can increase your business conversion rates. Integrating the most popular payment methods will ensure your clients can find their preferred option at checkout. This can help you increase your conversion rates.
3. Fewer abandoned carts
A simple and convenient checkout with multiple payment options can decrease abandoned carts. One-click payments reduce payment steps to a minimum. So, customers are less likely to decide to take their shopping elsewhere due to a perceived inconvenience.
Imagine a customer with a full online shopping cart. Upon arriving at the checkout, they learn that they’ll need to enter their card details, contact information, and sometimes even more data to finish the purchase. This customer is much more likely to abandon their checkout than one who can pay in a single click.
4. Increased customer loyalty
Customers who know you offer their preferred payment option are more likely to shop with you again. Offering simple, quick, and convenient payments can ensure your customers return to your online shop.
5. Brand trust
Secure checkout with a selection of payment options can increase your brand trust. A suspicious-seeming checkout is one of the main reasons customers abandon their carts. Make sure your payment window is on-brand and doesn’t require too much personal data. This will help you build a trustworthy brand consumers want to shop with.
6. New customers
According to the statistics, the European payment market is fragmented, and payment preferences vary from country to country. For example, only a few years ago, Mastercard accounted for 95% of payments in the Netherlands but only 12% in Germany.
This data proves that offering multiple payment options is crucial for international businesses and companies wanting to attract new customers.
What happens if you don’t offer enough payment methods?
If you don't offer enough payment options, you risk losing your customers and revenue.
A lack of varied payment methods is one of the main reasons customers abandon their carts. Data shows that e-commerce businesses lose $18 billion in sales revenue every year due to abandoned carts.
Which payment options to offer?
The top three preferred digital payment methods are as follows:
- Mobile wallets
- Credit and debit cards
- Direct bank transfers
Research shows that the popularity of mobile wallets will continue to grow. In 2021, this payment method accounted for 49% of e-commerce transaction volume worldwide, and studies predict it will account for 53% of transactions in 2025.
Credit card popularity will shrink (from 21% in 2021 to 19% in 2025), while debit card use will remain steady at 13%.
These three payment methods will ensure your checkout is ready to serve most shoppers. But keep in mind that not all the same payment options are equally popular across different countries. If you’re targeting a specific region, research how shoppers prefer to pay there.
For example, an online retailer Slevomat launched its own payment method, Slevomat Pay, using kevin.’s payment infrastructure. This payment method enabled the company to offer their customers a more convenient alternative to card payments and the BNPL (buy now, pay later) payment option.
How to integrate multiple payment options effectively?
Choosing the right partner for your payment needs can define your business’s success. The same applies to choosing your payment options. It requires careful consideration of your client's needs and market research. How can you ensure that your payment options will be effective?
1. Identify customer needs
Research what payment methods are the most popular among your target customers. Use data rather than gut feelings here. Preferred payments differ from country to country, so you should know exactly which option is the most desirable for your clients.
2. Evaluate the costs
Some payment methods have better acceptance rates than others. This means that choosing the right ones can save you money and even help generate more revenue.
You should also consider the fees that certain payment methods contain. You may not have known that card processing includes up to 16 different fees! They can add up to a significant amount of money, leading to higher service prices for your consumers. Not only that, you may still have to pay for declined card payments, even when a transaction doesn’t go through.
3. Ensure security
Online payment fraud is on the rise, and e-commerce companies are losing billions of dollars to it every year. Offering secure payment methods will increase your brand trust and can reduce the potential for fraud.
Account-to-account payments eliminate any risk of card payment fraud. This payment method allows consumers to pay directly from their bank account and cuts out any intermediaries.
4. Integrate with a payment gateway
For example, if your business works across multiple countries, find out how broad is the coverage of your preferred payment gateway. Checkout conversion rates, price, support, and—of course—payment methods are also important factors to consider.
kevin.: a partner for all your payment needs
kevin. offers a robust payment infrastructure enabling your business to provide a secure and convenient payment experience for your customers.
Our account-to-account payment solution is a simple and reliable payment option that can help you sell to over 350 million shoppers across Europe. We eliminate all unnecessary intermediaries from the payment process, which helps you save on payment costs.
With kevin., you can rest assured that your payments are secure.