The online shopping market is huge and continues to grow: experts estimate that by 2026, 24% of all purchases will be made online. In such an environment, e-commerce businesses face high competition.
A number of factors can contribute to the success of a company. One of them is the availability of various payment methods for online purchases on the website: according to Stripe, 86% of customers will cancel an order if the preferred option is not available in the store.
We will explain why it's important to offer customers multiple payment methods, what options are available to businesses, and how accepting cryptocurrency payments can help your company.
Multiple Payment Methods: Why Is It Important?
About 95% of shoppers report that they pay attention to the available payment options for an online store when choosing an online shopping platform. A variety of options available is good for business growth for several reasons:
- Improving the shopping experience. In the highly competitive e-commerce sphere, customers expect businesses to provide top-notch service — including offering a variety of payment options on the website at checkout.
Having a method that is convenient for the customer increases the likelihood of successful order completion, as well as subsequent customer return to the company's website. It's important to target the needs of your audience and offer options that are relevant to their country, age, and preferences. - Attracting new customers. For many customers, having a preferred payment method is one of the main factors in choosing an online store. Companies that offer several different payment methods have a higher chance of attracting new customers.
This is especially true when connecting less common payment options — such as cryptocurrency payments, which more and more young shoppers are turning to. - Increasing conversions. Conversion to purchase is the percentage of targeted actions performed by website visitors; in this case, the ratio of orders placed and paid for. It is influenced by a number of factors: from the intuitiveness of the interface and the speed of the website to the convenience of order placement.
Availability of various payment methods in the store is one of the important factors: a customer who has access to the preferred option is more likely to finalize the purchase. - Reducing abandoned carts. Abandoned carts are one of the major problems that online retailers often face. Customers don't pay for orders for a number of reasons: too complicated checkout process, slow website, unclear shipping rules, etc.
Lack of a convenient online payment method is one of the common problems that leads to customer loss. - Building trust in the business. Connecting online payments on a website through several services that are trusted and recognized by customers is a demonstration that the store is trustworthy and offers a high level of transaction security.
A website's good reputation with well-known payment systems and online services is an opportunity to win the favor of potential customers, increasing the likelihood that customers will trust the company with their data.
Basic Payment Methods for E-commerce
There are a number of payment options available to businesses, from the usual bank cards and online wallets to cryptocurrency and QR codes. We recommend offering the customer a choice of several options, rather than limiting to one method — this will help boost conversion rates and expand brand loyalty.
Bank card
One of the most popular ways to pay is with a card. This is a proven and fast option, which does not require the client to set up online wallet accounts or perform any additional actions: just enter the payment information on the payment page and confirm the transfer. Most payment services provide the service of processing such transactions.
Electronic wallet
Another popular payment method is a wallet: for example, PayPal, Apple Pay, Google Pay. For buyers, this option is convenient for several reasons. First, many services allow you to make payment in a few clicks without entering payment data manually. Secondly, with an e-wallet you can avoid using bank card data on unverified websites. As a result, the customer is more likely to make a purchase.
Cryptocurrency payments
Crypto payments are a relatively young method of accepting payments, which is nevertheless rapidly gaining popularity. Crypto transactions have a wide range of advantages over fiat money: the ability to make cross-border payments without having to convert currency, high processing speed, low fees (usually 1-2%), anonymity and security, as well as the ability to work with clients around the world without facing restrictions.
There are many services that process payments in digital currencies. Many of them do not require entrepreneurs to have much experience in dealing with cryptocurrency, have a convenient intuitive interface and support fast withdrawal of funds.
Transfer to settlement account
Direct bank transfers are one of the payment options through the website, which does not require the integration of third-party services and systems. The client manually makes a transfer using the details provided by the company. Nevertheless, it should be taken into account that this option is not the most convenient from the client's point of view: such transfers are time-consuming and can lead to the refusal of purchase.
Payment link or QR code
Payment by links from the buyer's point of view is similar to payments through a regular checkout: a link or a scanned QR code redirects the client to the payment page where he can enter his data. For businesses, QR code payment in an online store allows to accept payments without integrating transaction processing services into the website. In addition, QR codes can be used at physical points of sale if a company operates in a multichannel mode.
Advantages of Cryptocurrency Payments
Cryptocurrency as a means of payment for online stores is in demand for several reasons:
- Processing speed. Cryptocurrency payments do not depend on the mode of operation of financial organizations, which ensures fast transactions both domestically and worldwide.
- Low fees. Even when crypto processing is used to accept payments in an online store, the number of intermediaries in processing the transaction is less than in a regular payment. As a result, the entrepreneur pays a lower commission (1-2%).
- Security. Making a payment in cryptocurrency does not require entering personal information, which completely excludes data leakage and increases the confidence of buyers.
- No chargebacks. Cryptocurrency transactions are irreversible. This reduces financial losses of the business and allows you to solve any issues directly with the buyer without the intervention of payment systems.
- International payments. The introduction of sanctions has made it more difficult to work with clients from abroad. Cryptocurrency gives the greatest freedom when interacting with a foreign audience.
Accepting Payments with CryptoCloud
CryptoCloud is an online payment service that allows you to process transactions in Bitcoin, Ethereum, Litecoin, Tether, and other currencies. The system's capabilities include accepting payments via an integrated checkout, as well as generating invoices and payment links. With the help of the service, an entrepreneur can connect payment in an online store, application, social networks.
Checkout is multilingual, which allows you to work with clients around the world. Connection is free of charge, and integration is carried out in a few minutes.
The user can manage several projects from one account, work with statistics and analytics, and open access to company employees. In addition, CryptoCloud offers a large library of instructions, FAQs and tutorials on working with the service.
Using Various Payment Methods to Increase Conversion
Today's ecommerce sector is a field with great opportunities and high competition. To find and retain its audience, businesses need to stand out and offer customers the best possible service. One way to achieve this is to incorporate multiple payment methods.
In addition to the usual cards and online wallets, it is recommended to consider other options — for example, cryptocurrency. CryptoCloud service will help automate crypto payments and make them convenient for both the entrepreneur and the client.
