So, if your world has come crashing down â€“ take a long breath and meditate! Yes, alternate payment options can increase the conversions vigorously by 101%!
Monks have always talked about providing users with alternate payment options as a best practice in many of our resources. This is now backed up by evidence and stats making it more significant. A recent study by Seewhy analyzed credit card conversions and compared them with multiple alternative payment methods across more than 1,000 ecommerce sites. The data shows significant increases in alternate payment conversion compared with credit cards, peaking at a 101 percent increase on smartphones.
This might not be the entire picture as such a conversion rate might be applicable just to the 15% of your overall audience according to practical commerce as there are many considerations before embarking on the alternate payment options and Monks unveil a few of them below:
–Â Â Which payment method to be offered?
The prime concern that you as a merchant might have is providing a right payment method to visitor or prospect. The best escape is to route your payments through Paypal. The only reason that makes a strong case for Paypal is its over 30 million US mobile consumer base and as per the Seewhyâ€™s report 34% of online shoppers in US have a Paypal account.
However, due to certain negatives some consumers also prefer alternatives and thus having a Google Wallet account alongside Paypal would not be a bad deal.
Taking into account Mastercardâ€™smasterpass and Visaâ€™s v. me and the number of payment options they have, it is extremely difficult to choose the best method. Consult a right e-commerce expert to come up with right payment option alternative.
–Â How many calls to action to accommodate?
Choosing multiple payment options is definitely a good idea but you also need to think of various associated calls to action that you might have to accommodate. Avoid having many visual distractions while secure checkout for a better conversion. Try capturing the data of returning customers and hide and show only relevant payment method. Ex. If a customer is a Paypal customer, only show respective button hiding others on the screen.
– Â How to implement it successfully?
Implementing alternate payment options is difficult. The main objective of providing alternate payment methods is to help users with a speedy checkout. Also, it helps bypassing shipping, billing and card entry steps. While implementing an alternate payment option, use calls to action button on the cart summary page and provide users flexibility to swing from one method to another and not just an alternative to credit card payment. Moreover, each alternative payment method has its own unique application and settlement process, language and currency support, and is subject to domestic rules and regulations. This has to be taken into consideration as well.
Summing up, alternate payment options are surely helping merchants in boosting the conversion rates undoubtedly however; implementing them in a right way is still a big challenge for most e-commerce stores. If you as a merchant can eliminate data entry steps for mobile consumers and provide a successful checkout, you win the game of alternate payment options successfully.