Providing customers with an omnichannel shopping experience is one of the advantages in the retail industry today. Checkout, as the final step in the purchase journey, is just as important as every other step. The availability of flexible payment options can be the deciding factor in whether customers complete their transactions or abandon them.
Offering diverse payment methods is not merely a convenience; it's a strategic imperative to drive sales and enhance customer satisfaction. In this article, we will discover why providing flexible payment options can contribute to retail success.
What are Flexible Payments?
First, let's define what flexible payment means before diving into the topic.
Flexible payment refers to offering customers various payment methods, such as credit cards, debit cards, e-wallets, QR code payments, buy now pay later options, installment payments, or store credit payments.
Lack of Flexible Payment Options Leads to Lost Revenue
According to a report by Airwallex, 77% of customers abandon their shopping carts when their preferred payment options are unavailable. Imagine picking (adding) your desired items into your shopping bag (cart), only to discover at checkout that the store doesn't accept your payment method. This experience is frustrating and potentially causing you to abandon the purchase and consider shopping in other stores that accommodate your preferences.
This shift may impact immediate revenue and even erode customer satisfaction and loyalty. Furthermore, modern shoppers, particularly younger generations, perceive limited payment options as outdated and inconvenient, associating them with poor shopping experiences.
How Flexible Payment Options Contribute To Retail Success
Building on our earlier discussion about the importance of flexible payment options for customer satisfaction and revenue growth, let’s explore the topic a little more deeply.
#1 Speeding up Checkout Time
Fast payment options speed up the checkout process and improve store operations efficiency. Long queues and extended wait times can deter customers from completing their purchase.
Integrating fast payment methods, such as "pay wave," significantly enhances the checkout process by allowing customers to complete transactions swiftly. These methods enable customers to pay by simply tapping their card or mobile device near the payment terminal, eliminating the need for manual entry of PINs or signatures.
#2 Increasing Conversion Rate
When customers encounter their preferred and trusted payment methods at checkout, they are more likely to complete their purchases. A report from EBizCharge stated that the more payment options offered, the higher the conversion rate will be. This highlights the direct link between payment flexibility and sales conversion rates.
Moreover, ensuring the credibility and security of these payment methods is crucial, as customers are more inclined to finalize transactions when they feel secure.
#3 Improving Customer Retention
You can increase the likelihood of choosing your store over competitors by offering payment options that align with customer budgets and needs, such as installments or credit points.
When customers perceive that their payment preferences are valued, they are more likely to return, fostering repeat business and becoming loyal customers. Satisfied customers often engage in word-of-mouth marketing, sharing their positive experiences with others, which can significantly boost your brand's reputation and attract new clients.
#4 Tapping into New Customers
Offering international payment methods is essential for retailers aiming to expand their customer base globally. By accepting payment options popular in target markets, such as Alipay or WeChat Pay in China, businesses can cater to local preferences, enhancing the shopping experience for international customers. This adaptability encourages cross-border transactions and allows you to open doors to new customers around the world.
Payment options that can be implemented to attract customers
Here are some options to diversify your payment methods.
Traditional Payment
- Cash
Physical currency transactions remain prevalent due to their simplicity, immediacy, and being free from transaction fees.
- Bank Transfers
Direct electronic transfers between bank accounts are commonly used for both personal and business transactions.
- Debit or Credit Card
Widely accepted and convenient, card payments enable quick transactions.
QR and Digital Payment
- Mobile Wallets
It allows customers to store payment information securely and make contactless payments via smartphones or smartwatches.
Famous mobile wallet applications: Apple Pay, Huawei Pay, Google Pay, Alipay, GrabPay, WeChat Pay, FavePay, and more.
Buy Now, Pay Later (BNPL)
BNPL services enable consumers to split purchases into small installments, often without interest. It's commonly used for expenses like renovations, weddings, and luxury merchandise.
Credit and Gift Cards
- Store Credit
Offering store credit allows customers to make purchases on account, with the balance to be paid later. This option can encourage repeat business and customer loyalty.
- Gift Cards
Gift cards provide a prepaid method for customers to shop. They are often given as presents and can encourage recipients to visit the store, potentially bringing in new customers.
Diversify Your Payment Options to Win More Customers
As a retailer, it’s essential to provide a satisfying shopping experience, as this is one of the key actions to retain customers. For over 30 years, we have been developing solutions that evolve alongside the changing demands of retailers. Our Omnichannel Retail Solutions integrate a wide range of payment options to provide a flexible checkout experience for your customers.
Contact us today and let our experts show you how powerful our retail solutions are in helping your business grow and succeed.
