Why you need multiple payment methods on your store

Expansion and development of an Ecommerce store depends on the number of loyal customers, conversion rate, sales and many other things. Providing many payment methods will help Ecommerce sellers solve this. With so many payment methods available, it can be difficult to know all of the payment methods your customers prefer.

Today, some of the most popular (and emerging) methods buyers use to pay for goods and services online include:
– Traditional debit and credit cards (such as Visa, MasterCard and Discover)
– E-wallets (like PayPal, Apple Pay and Venmo)
– Buy Now, Pay Later options (like Klarna, Affirm and PayPal Credit installments)
– Cryptocurrencies (like Bitcoin, Ethereum and Solana)

Many Ecom sellers believe that choosing a payment gateway or payment provider is enough to open a functioning e-commerce business. While this approach is good for some businesses, it doesn't always help them succeed or expand their customer base beyond their current loyal customers. Here are some reasons why offering multiple payment methods for online products is important for ecommerce businesses looking to scale.

Consumers have a need, and your competitors are already providing it

According to research by Stripe, 85% online customers said they would stop purchasing if their preferred payment method was unavailable. Because each customer has unique preferences, businesses that offer only one payment method have the potential to delay or prevent some customers from making purchases.
Businesses can stay competitive by starting to offer additional payment methods now (if they don't already) to give them an edge over their competitors. Many businesses have added many new payment methods for customers, but for businesses that have not done this, they will definitely add more payment methods in the future to keep up with trends in their industry. Surname.

Sales through smartphones are increasing

E-commerce has grown at an explosive rate recently, in part due to the global Coronavirus pandemic reducing the convenience and safety of shopping in physical stores. In addition to desktop transactions, online shopping via smartphones is also on the rise—nearly three out of every four dollars spent on online shopping today is done via mobile devices. dynamic, according to recent information from Oberlo.
When shopping on smartphones, shoppers can use other traditional payment methods, but other mobile-only payment methods are also growing in popularity. For example, the original parachute Venmo was only used by individuals to pay their friends, but now, US-based businesses can now allow customers to use Venmo to make purchases on their smartphones.

Minimize dependence on a single payment method.

When sellers rely on just one or two payment providers for their entire business, they are facing the risk of going out of business if their chosen payment provider experiences problems. Even the largest and most secure service can go wrong, as we've seen in recent years.
By using multiple payment methods across multiple payment providers, businesses can avoid being unable to process transactions if one of their payment providers has problems. With multiple options available, customers who are unable to use the affected payment method can choose another payment method and continue to complete their purchase.

More payment methods mean more customers

Overall, offering multiple payment methods to customers brings positive results for both businesses and their customers.

For customers, having multiple payment methods at checkout has several benefits such as:

• Convenient:

Most customers have a preferred payment method when shopping online. By accepting multiple payment methods, businesses have the ability to accommodate each customer's preferred payment method, providing convenience that customers appreciate.

• Cost savings:

Some payment methods can be more costly than others—service fees associated with credit cards and the burden of one-time payments can make online shopping less feasible . Offering additional options, like e-wallet payments and installments, can help solve this problem.

• Security:

Some customers feel more comfortable with the security features of some payment methods than others. By offering a variety of payment methods, businesses expand their ability to meet security standards making each customer feel more comfortable making a purchase.

Besides, businesses will also gain the following unique benefits:

• Increase conversion rate:

Having more options can lead to higher conversion rates as customers easily use their preferred payment method instead of having to find ways to use less convenient methods for them at checkout.

• Reduce shopping cart abandonment:

With their preferred payment method in place, customers experience fewer barriers to purchasing immediately, which can lead to a reduction in abandoned carts.

• Loyalty of royal guests:

Customers who know they can pay the way they want are more likely to come back and continue to buy from you, leading to more loyal customers and repeat purchases.