3 Payment Strategies to Improve eCommerce Growth

Although the Covid-19 pandemic is now subsiding, it has caused significant disruption in traditional sales channels. As a result, many businesses are looking for ways to boost their eCommerce growth. Here are three payment strategies that entrepreneurs can use to increase their eCommerce growth:

1. Localize Payment Methods

Different countries employ different payment methods. Shoppers prefer payment methods with which they are familiar and frequently advocate for retailers that accept their preferred payment method. Consider Nigerians; those who live in countries where many residents are unbanked prefer to pay with cash.

Sweden, on the other hand, is the first country to implement a cashless payment system. Based on these distinctions, entrepreneurs should be mindful of fundamental habits and provide the best payment methods for their customers.

While many Brazilians use credit cards, they are not activated for international transactions. As a result, many consumers prefer to use local payment methods rather than credit cards. Depending on the country, entrepreneurs can offer Paypal. In Germany, for example, more than 50% of consumers prefer Paypal transactions.

However, less than 10% of people living in Spain would choose Paypal. Offering the most popular international payment solution helps eCommerce firms boost conversion rates in international regions. 

2. Create an Omnichannel Payment Solution

An omnichannel payment solution means giving your consumers a consistent solution whether they pay online or offline using a desktop or mobile device. In today’s digital world, consumers across the globe are used to advanced brands that offer a smooth user experience and a user-friendly payment solution. Big technology firms can adapt to customer demands and still offer a dependable experience, filling the gaps between in-store and online transactions. 

3. Conduct Economic Analysis

Making credit card payments online is costlier than card-present (CP) transactions in a physical store. Further, card-not-present (CNP) transactions place chargeback liabilities on the retailer instead of the card-issuing financial institution, thus increasing the risk for your business. These issues can become overly complex when you adopt other payment methods like advanced digital payments.

Work with your accounting department during the early stages of your direct-to-consumer strategy development. Doing so will help you create financial processes and models to cater to possible complexities and facilitate risk mitigation. 

Sweet Tips from Ally

A good payment strategy can go unnoticed by customers but a less effective payment strategy, on the other hand, will most certainly increase customer churn. Providing the best possible experience can thus boost conversions and eCommerce growth. To increase conversions, make sure your payment method is efficient and quick, integrate the payment system on multiple devices, and shorten the order to payment process.