According to Checkout.com figures, around 60% of customers abandon a purchase if they can’t choose their preferred payment option. Retailers, in particular, should not ignore the “buy now, pay later” (BNPL) trend and should also push to integrate digital wallets such as Apple Pay and Google Pay. In Europe, around 80% of consumers can imagine using digital wallets or already do so. Installment payments are creating new options for consumers looking for flexible, straightforward payment options. These are proving important for many people, especially in times of impending recession.
Payment systems are continuing to evolve, and merchants must also simultaneously adapt to changing trends in consumer behavior. In addition, offering the right payment methods reduces transaction costs, improves acceptance rates, and increases the security of payment processes. Together with GFM Nachrichten – Digital for Retail and Marketing, E-Commerce Berlin Expo asked checkout.com about their tips for merchants who want to optimize their payment methods. Here they are.
Listen to your customers and analyze exactly which devices and apps they use for their purchases and how they interact with them.
Pursue a local payment strategy – even if the offer of alternative payment methods increases the possibilities of cross-border e-commerce, retailers should never assume that every payment method will work the same for everyone and everywhere. Payment preferences sometimes differ greatly, and this applies to digital wallets just as much as to the prevalence of credit card networks.
Use the potential of your payment data – this will help you understand which payment options you should offer to which customer groups. Such analysis can provide valuable information to retailers about payment preferences, industry benchmarks, and comparable APM cost/acceptance rates.
Keep track of new, alternative payment methods – sometimes a new trend can develop into an important competitive advantage in a very short time on a particular market. Follow the discussions in your industry networks, ask your customers, and – of course – also use the expertise of your payment partners to get prepared for new trends at any time.
Partner with experts who can ease the complexity of the payment process for you. Each payment method comes with its own legal and regulatory requirements, as well as technical integrations and challenges. We believe the best approach for merchants is to implement a unified integration such that new payment methods can be added seamlessly and without any problems for the retailer, allowing them to fully concentrate on their core business.
The material was written by Angelique Szameitat in collaboration between E-commerce Berlin Expo and GFM Nachrichten with the aim of providing readers with knowledge on how to stay competitive in the new era of digital commerce. Read the text in German here.
Want to learn more about where the payments market is headed and what to watch out for? Do you want to establish or deepen existing business relationships with some of the most popular payment providers worldwide? Then you should already make a note of February 23, 2023, when numerous exhibitors and speakers await visitors to the E-Commerce Berlin Expo (EBE).