Online shop operators often worry about the so-called “conversion rate”, i.e. the proportion of page visitors / traffic that actually “converts” to paying customers afterwards. To keep this rate as high as possible, all possible measures are taken in the field of online marketing as well as website structure. However, one part that is often pushed into the background is the range of payment options – this is where customers tick differently!

Pick up every customer as possible

Basically, the following rule of thumb applies first: The more payment options the better! At this point, it is worth putting yourself in the customer’s shoes. This could be faced with different situations – examples:

• Customer has a PayPal account on which he still has a remaining balance. Instead of transferring the money somewhere, it is just as interesting for him to use the credit to buy something he needs on the spur of the moment. Perhaps, in that case, people don’t even look that closely at the price. So it’s good if you offer the possibility as a store operator!
  
• Customers like to store by credit card because they benefit from bonus points, air miles, or simply the advantage of a later debit from their checking account.
  
• The same applies to purchase on account. However, you should keep an eye on the creditworthiness of the customer and / or offer it only to regular customers who have already paid once for their goods.

Other payment processing options could include Klarna, mollie, Local Heroes or special local providers for certain countries (if there are potential customers there), such as iDEAL (Netherlands) or CARD Bank (France). We recently produced a video specifically about these and other providers.

Cryptocurrencies a valid means of payment in e-commerce?

While the crypto trend is no longer a truly new phenomenon, currencies such as Bitcoin, Ripple or Ethereum are still in their infancy in terms of their status as a means of payment. The reason lies in the high fluctuation of the countervalue caused by speculation with cryptocurrencies. Of course, as a store owner it is interesting to offer the customer a payment option via cryto as well, but there are some things you should consider:

• Only bet on really common currencies like Bitcoin or Ripple.
• Take a premium because of the expected fluctuation.
• If necessary, consult with the tax advisor to determine which special features should be observed.

So offering appropriate cryptocurrencies for payment processing can be an advantage, but it also brings risks. Therefore, in this case should be weighed carefully.

Higher price enforceable thanks to suitable means of payment

In some cases, a broad selection of payment options available to customers also means that higher prices can be achieved at the bottom line – even without additional repricing. If a customer does not find his desired payment method in another online store, it could be that the store that offers him exactly this will be given preference, even if it is perhaps somewhat more expensive.

Advantages of immediately posted transactions

Another advantage with many payment methods such as credit card, Bitcoin or PayPal is also that the money arrives directly at the recipient. Thus, the store operator immediately has appropriate security and can send the goods without further delay. For the customer, this may have the advantage that he does not have to wait so long for his goods.

Conclusion

Actually, it almost always makes sense to offer the customer as many payment options as possible. As a merchant, you should only keep an eye on certain risks that you run with certain variants and then exclude them if necessary or only apply them to customers with a good credit rating. Of course, it must also be expected that the selected services are also relevant for the corresponding clientele. Also the combinability through the chosen online shop system should be given.

Hassan Bajwa

Hassan Bajwa ist der Shop-Experte bei eBakery. Er realisiert z.B. Onlineshops auf Basis von Shopware oder Shopify. Zudem kümmert er sich um die Integration von Templates und die Anbindung verschiedener Schnittstellen. Hin und wieder schreibt Hassan auch in unserem Magazin und gibt sein Fachwissen aus den verschiedenen Gebieten preis.