Online Payment: Choose The Appropriate Payment Methods For Your Business
Whether you want to improve your conversion rate domestically or expand internationally, offering the right payment methods to your customers is essential. The suitability of certain payment methods will depend on the nature of your transactions and the location of your customers.
This section discusses the seven primary payment method categories and the variables to take into account based on your business model: On-demand services, SaaS and subscription businesses, e-commerce and marketplaces, or professional services. If you are a B2B platform that allows users to accept payments, the means of payment like E-Complish for example will depend on your users’ business model.
E-Commerce And Marketplaces
Recommended: cards, wallets, transfers with bank redirection, deferred payments. If any business model must offer a seamless payment experience, this is a particularly important issue for e-commerce companies and marketplaces. Their customers demand streamlined checkout experiences that let them buy what they want when they want it. Offering the right payment methods increases flexibility and simplicity (and therefore optimizes conversion), reduces fraud, and speeds up transactions.
It is, therefore, important to support all the appropriate bank cards to optimize your conversion rate and costs. Redirected wallets and transfers also help increase conversion rates, as they allow customers to use previously saved payment information (the extra verification level also helps reduce the likelihood of disputes). Like bank cards, wallets are reusable: customers enter their payment information once and do not need to enter it again if this information is saved. This allows you to offer “one-click” checkout experiences.
Customers prefer to pay with coupons and bank transfers in many large markets where bank cards are infrequently used, such as Brazil, Mexico, and Indonesia. These methods do not support immediate payment confirmation or refunds to the originating account. This can cause problems for e-commerce businesses that rely on real-time payment notifications to manage their delivery flows or refunds to build customer loyalty. Stripe can help multinationals meet the needs of this type of customer by implementing automatic refund experiences and faster notifications for payment methods that do not normally support these features. ACH Returns: What Merchants Need to Know, learn what it is about when you visit website.
The advantage is that all this information is concentrated in one software, which facilitates the verification and reduces possible errors. These methods also reduce manual operational activities, which consume your staff’s time, generate costs, and increase the possibility of errors.
