Avoid abandoned shopping carts with varied online payment options
Why are abandoned carts so common?
Statistically, two-thirds of online shoppers will abandon their online shopping carts before proceeding to checkout. This can happen for a number of reasons, such as undesirable shipping time or costs, overly complicated checkout processes, concerns about website security or performance, and comparison shopping (to name a few). While many of these factors are out of the seller’s control, one particularly common issue that businesses do have control over, is the variety of payment methods that they offer their customers.
When shopping online, consumers want an efficient, seamless experience from start to finish. Viewing and selecting their chosen goods is the easy part, whereas the most crucial step - both for the consumer and the seller - begins once they move to checkout.
The importance of offering different payment methods
The cashier page determines how the consumer pays. The more payment methods offered, the wider the pool of paying - and returning - customers becomes. From debit/credit and prepaid cards, to E-wallets, bank transfers or direct carrier payments, the variety of options is crucial. Alternative payment methods (APMs), such as PayPal and Apple Pay, are also hugely important to consider, with APMs predicted to account for more than half of online transactions globally in the not too distant future.
Essentially, once they go to checkout, consumers want the payment process to be timely and convenient. The fastest and easiest methods of paying are those which are most familiar, emphasizing the importance of giving customers a variety of options. The more choices there are, the higher the likelihood is of gaining customer satisfaction.
What are payment gateways and payment processors, and why are they a crucial part of the customer’s payment experience?
Payment gateways and payment processors work hand in hand to enable smooth operations when it comes to online transactions. Payment gateways like Zotapay approve digital payments, ensuring that they are executed as efficiently as possible between customers, payment providers and online stores. The role of payment gateways is to allow businesses to sell their products to anyone, anywhere, in their chosen currency - while maintaining the safety and security of all data, and user information.
Payment processors do just as it says on the tin - typically, they are third party companies that process the transactions on behalf of a business. These two systems are vital elements of the online payment journey, and therefore the overall success of online businesses.
Why offering an array of payment options can help avoid abandoned shopping carts.
So, why are payment gateways and payment processors so important when it comes to alleviating the risk of abandoned shopping carts? The answer is simple - they represent the difference between a smooth payment experience for the customer, and a complicated one.
Payment gateways allow businesses to offer a variety of payment options, which in itself increases the chances of customer satisfaction once they reach the cashier page. Payment processors help by ensuring that the payments are completed with ease. The payment experience is only one of many ecommerce pain points that cause people to abandon shopping carts. However, it is one that businesses have autonomy over, meaning that the more focus placed on the consumer’s payment experience, the higher the businesses’ chances of that payment being completed.