Driving Value from Alternative Payment Options

Imagine having the possibility to drop your shopping cart abandonment rates drastically, while strengthening the relationship with your online customers...

In order to employ these benefits, merchants should deliver value in every transaction to each customer. Although it seems unlikely to deliver these through marketing incentives, it could be delivered easily through the value of your payment experience.

Most inexperience entrepreneurs or startup owners have undermined the role of payment experience. The fact is, payment experience matters, and by far the most significant factor in reducing the gap in the relationship between a digital shop and an online customer.

As quoted from thepaypaper.com, “APMs (Alternative Payment Methods) have enormous potential to drive greater value to merchants by not just expanding reach, but also strengthening the merchant-customer relationship”; justifying how alternative payment method can bring a difference in the digital interaction between the two.

So, how does exactly giving consumers additional payment method results to additional value?

1) Attract the Underbanked and Unbanked

Let’s be honest, not everyone who wants to buy your product may have a credit card.

By adopting payment options that provide them with the necessary option to purchase your online products, you are giving a value that does not exist before.

Additional payment options such as debit card, gift card, or even payment by cash will allow consumers to recognize and spread your brand. On top of that, you may find additional market segment to be fruitful as well.

2) Increase Checkout Speed

Reducing the complexity of your checkout window allows you to promote security and simplicity in your brand.

With the latest alternative payment options being ‘portable’, consumer will be exposed to effortless checkouts, without the need to disclose name and credit card numbers. Alongside the delightful payment experience, merchants will also crop the benefit of lower abandonment rate.

At any instance, online buyers will prefer simple, hassle free payment instead of the long and complex checkout process. As consumer gets comfortable, you can guess its long-term effect... Higher value. Higher trust. Higher Sales.

3) Specify Market Segment

All of us know our target market and segment, but we are never too sure about how they like to pay.

Alternative payment option lets you find the ideal payment method that your customers are comfortable to pay with. On one side, adding more payment options to your business allows customers to pay with his or her preferred payment method. On top of that, it becomes another reason to shop on your store, when you give customers what they want.

Ultimately, merchants will find long-term values by adapting additional payment options in the business. Although there are a lot of payment gateways out there, it is important to get the bang for your buck, the biggest value for you and your customers.