The number of payment methods available to consumers has increased dramatically over the years. However, some businesses have failed to take advantage of the opportunity that being able to accept payments across multiple platforms offers.
The reluctance to offer more payment options might be attributed to the additional admin that it would create. After all, one bank reconciliation a month is bad enough. So, who needs the hassle of administrating multiple income streams and dealing with many payment providers?
What many people fail to realize, though, is that offering several payment options does more than merely make things more convenient for customers. Multiple payment methods can increase sales, too. Here’s a breakdown of the benefits of offering a range of payment methods.
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When people see the logos of the different payment providers on a website, it infers that those providers trust the brand. So, demonstrating that you accept payment methods can increase the trust that customers have in your brand. That trust is not entirely unfounded, because some payment processing providers will work with only reputable businesses. So, taking multiple payment methods suggests that the company is genuine, well-established, and well-run.
Expands the Potential Market
Consumers have different personal preferences when it comes to payment methods. For example, some people don’t trust online payments, so they will only use PayPal. On the other hand, some might prefer to use Apple Pay or Google Pay. Therefore, businesses that accept payments across a limited range of payment options will prevent those who do not possess those payment methods, or choose not to use them, from becoming customers.
Demonstrates Customer Orientated Focus
Managing multiple payment methods can increase the administrative burden. However, by taking on those relatively insignificant additional admin tasks, a company demonstrates that they are putting the customer first. The company is not dictating one payment method because it’s easy to administer. Instead, they are providing a service for the convenience of their customers.
Beat the Competition
Offering more payment options than other businesses could be all it takes to flip a customer from one of your competitors. Indeed, a customer could find a product they liked on a competitor’s website, only to find that the company does not accept the customer’s preferred payment method. In that case, the consumer is likely to search for a business selling that product that takes their choice of payment type.
Hasten the Purchase
A business that accepts credit cards or offers payment terms is in a position to hasten a purchase that would otherwise have been put off. For example, a customer who was only browsing might be tempted by the opportunity to buy now and pay later. So, multiple payment methods can speed up the buying decision and remove the affordability barrier.
Sometimes, the convenience of multiple payment types will increase sales. For example, a customer with insufficient funds available in one payment method may not wish to go through the inconvenience of transferring money from one account to another. Or, they may not have their debit card to hand but do know their PayPal login details. Quite simply, accepting payments in many ways makes it easier for customers to buy. And, the more straightforward it is to buy, the more likely it is that the customer will complete the transaction.
Increase Referral Customers
Referrals are a great way of generating new business for free. But, if a company only accepts a limited number of payment methods, it limits the possibility that new referrals will make a purchase. It won’t matter how excited someone’s best friend is about the product. If the friend does not have one of the limited acceptable payment methods, that hot lead will look elsewhere to buy the product.
Keep up With Consumer Trends
The move from cash to card happened years ago, and now there are new payment methods that people are turning to, like mobile wallets and cryptocurrencies. Some sectors of the population like to use the latest technology. So, if a business is marketing to a tech-savvy segment of the market, it will need to keep up to date and accept payments using the latest methods, and that means processing more and more payment methods.
Increase Repeat Business
Customers return to the brands with which they have had a hassle-free experience. So, the key to repeat business is offering top-quality products and a second-to-none user experience.
Having to rummage around to find the relevant card or password will create a barrier to purchasing that customers are unlikely to forget. Even if they do buy this one time, customers will probably look for a better experience the next time they want to buy. So, making it easier for customers to buy by accepting payments in many ways will increase the likelihood of one-time customers becoming repeat buyers.
Accept Payments Easily
As your business grows, you must keep up to date and make it as easy as possible for customers to do business with you. And one way to do that is to offer multiple payment methods.
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