A merchants guide to surviving in a cashless society
According to PwC’s Global Consumer Insights Survey, consumers are making more online payments in 2019 than ever before. The number of consumers making online purchases more than doubled from 2010 to 2017 rising from 7% of consumers to 17%. Figuring out the best ways to accept credit cards online and choosing the right payment processer can be overwhelming, according to 40 different studies average rate of 69.89% of customers abandon their shopping cart. This is due to various factors including, hidden costs, extra steps, untrustworthiness, lack of payments methods and an inconvenient checkout process. It’s important for merchants to offer customers a variety of payment options. According to the 2016 Annual Billing Household Survey, customers use an average of 3.6 different payment methods each month.
Today there are many options merchants can choose from. Many of these options include multiple features such as, fraud detection and protection and other items that help merchants manage the monetary aspect of their business much simpler. As an e-commerce grows and goes global, some payment processers include tailored tools a merchant needs to sell to a global audience.
The world of online payments is pretty complex for e commerce merchants in particular the matter of how to accept payments online should be considered part of their overall business strategy. 1/3 of consumers hesitate to shop online due to security concerns and the average business loses 5% of revenues to fraud every year. Beyond the fees, fraud and conversion rates, a businesses ability to expand globally can be squandered by the merchants credit card processing choice.
The traditional method for accepting payments online is a combination of a merchant account and a payments gateway. A merchant account is a different type of business account that lets merchants accept credit card payments online. For a merchant the right payment service provider will make their life easier and help their businesses grow.
So how does a merchant get started? At is most basic level, a payment gateway provider enables the merchant to process credit, debit and alternative payments on their e-commerce. The list of options for accepting payments for a business are constantly evolving and the key to choosing the right methods for a merchant is researching the pros and cons of each method as well as the cost of having or not having a particular method. Once a merchant has an answer to these questions then they can pick the right payment system that fit their businesses and their clients needs to create a great user experience.