In the past three years, we’ve recognised that credit & debit card payments coupled together with a digital wallet like PayPal, lets you cover the majority of online transactions in Europe. With that combination of payment methods, you’re able to cover over 90% of online purchases in the vast majority of European countries – which makes it a key factor to increasing conversions on your e-commerce website.
We’ll take a look at three reasons how having multiple payment methods can help you increase conversions.
Easier for customers to checkout
Not everyone has a credit card, and what happens if you’re catering to a younger demographic, most of whom don’t necessarily have a credit card? And let’s imagine that’s the only payment method available – chances are those people are going to abandon your store and go to one where their preferred method of payment is available.
Essentially having multiple payment methods makes it more convenient for your customers to pay. Which leads me to my next point…
Meeting customer’s payment needs increases sales!
A survey performed by YouGov found that 40% of online customers felt more comfortable purchasing from an online shop with multiple payment methods available. The study also found that a staggering 50% would abandon their shopping cart when their preferred payment method wasn’t available.
When you look at large retailers online, you’ll notice they’ll at least give you the option of buying with a credit card and through a digital wallet such as PayPal. By having multiple payment methods available, which are popular with your target audience – you ensure you’re able to convert the majority of your online visitors.
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Increased usage of digital wallets
But as we all already know, typing in your credit card details while on the move can be a real hassle, which is one reason digital wallets are expected to increase in usage for mobile users.
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According to research by Adobe Digital Index (ADI), online shops experienced a 10% increase in shopping cart completion when a digital wallet payment option was available. Additionally, ADI found 23% of smartphone purchases are made through a digital wallet, compared to 19% on tablets and 16% on desktops.
What about you? Which payment methods do you use?