Finance

What Is the Link Between Payment Methods and Conversion Rates?

The link between payment methods and conversion rates is directly proportional to each other. If you see how online payment platforms work, they give customers access to a variety of payment modes to pay for the goods and services they buy online.

This is by design, since the more payment options customers have; the lower the cart abandonments will be and will result in a higher conversion rate.

What is a Conversion Rate?

It is essentially a technical term used to define the number of customers visiting your site vs. how many of them end up purchasing your goods and services.

Looking at your website’s analytics will reveal all the data you need to look for to find out the specific reason users are dropping out before making a purchase.

And if that is happening right at the payment page, then you really need to take a harder look at what is it that you are doing wrong.

What Can you Do to Minimize Dropouts and Cart Abandonments?

If the maximum number of dropouts are happening on the payment page, then you need to look for a few things!

  • Is your payment page easy to access?
  • Are You Asking Customers to Submit too much irrelevant information?
  • Is User Experience during the payment process user-friendly?

If you think that everything is perfect at your end, there’s a final question you need to ask yourself, ‘Is there a Problem With your Payment Methods?

  • You don’t have a variety of payment modes available
  • As you are not providing the most up-to-date payment methods
  • Only you are providing customers with legacy payment options such as credit/debit card, and net banking

If your answer is ‘Yes’ to any of those points, then you need to make a few changes ASAP. Believe it or not, payment methods have a direct impact on conversions. So, be smart about it. Here’s what you need to do.

Enable Multiple Payment Modes

Try to enable as many payment options as you can apart from the legacy payment modes we talked about. This will help you attract more customers, and lead to more conversions. Your payment page will appear attractive to customers across categories, be it baby boomers, who mostly stick with the traditional modes, or the millennials who prefer more modern payment options.

The idea is to convert customers across all age groups, and income brackets.

Closely Watch your Analytics

Once you have enabled the payment modes, keep a watch on your analytics. You must have at least 3 of the top most popular payment modes enabled as per the preferences in your home country.

See which payment modes are being used the most, and then move them to the top order so that the top three options are immediately accessible and customers don’t need to search for them on the payment page.

This will result in more conversions, as it will make faster checkout more convenient for customers.

No business can survive without proper conversion rates, and payment methods are directly responsible for that. Choose a modern-payment gateway provider like Plural Gateway by Plural Online to enable payment modes including WhatsApp, Facebook, Instagram, etc. apart from every other payment mode under the sun.

There are other solutions that provide dynamic tools for determining which payment options should be presented to customers based. On their pre-determined risk level. Higher risk payments (such as payment by invoice, which is common in Germany) can be offered alongside major card brands. Using a shopper’s delivery address, device information, and other data. Because the right payment methods are offered at the same time as lowering fraud risk, the background check is performed. Before the buyer reaches the checkout page, resulting in higher conversion rates.

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