6th April 2017

Payment Gateways and Conversion

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Most people working in the ecommerce industry will know the importance of ‘conversion’ and how the slightest mistake around the checkout process can increase the chance of an abandoned cart. It has been found, however, that by giving customers everything they require to complete their purchase, they’re more likely to convert to buyers. Simple I hear you say, but how do you do this? One way is by providing more than one payment gateway option for your customer to choose from. Read on to find how to choose the right payment gateway for your store and why customers are wanting ‘one-click’ technology.

What is a Conversion Rate?

First of all, for those that aren’t sure what a conversion rate is, the definition is “a numerical measure of potential customers that follow through to purchasing from your site. It is measured as the percentage of total visitors that end up buying from you.”

Different Payment Gateways

The definition of a payment gateway is “an ecommerce service that processes credit card payments for online and traditional brick and mortar stores” . It’s required to transfer key information between payment portals, therefore playing a vital role in the transaction process. Adding more gateways is easy, but how do you know the best ones to choose for your business? Key points to consider include:

  • Knowing the country, industry and type of device. Catering for customers accordingly can create a sense of security and build customer trust.
  • Offering the top 3 payment methods in a known market or country can improve conversions by 30%. This is due to the majority of shoppers knowing at least 1, again providing that sense of security.

Some of the most popular gateways available in the UK include:

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As well as these known gateways, another option that is becoming popular is the use of one-click payments. This demand to ‘be remembered’ is the incentive people need to return to a site because it saves time. As a result, there has been a reduction in the number of abandoned carts.

How Does This Improve Conversion?

The simple answer is, it’s more convenient for shoppers. Any method that helps shoppers purchase that product easier and quicker is going to help improve conversion. From a recent survey carried out by YouGov, 50% of people who didn’t see their preferred method of payment available would cancel their purchase. Around 40% said they would feel more comfortable buying from an online retailer if multiple payment methods were offered.

With the need for mobile friendly websites growing, it has become necessary for more payment gateway options like ‘one-click’ technology to be available because people want a quick and convenient method of paying.

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One Click Technology

An example of ‘one click’ technology emerging onto the scene is Amazon Pay. Launching in the UK, its aim is to provide a process similar to PayPal where customers don’t leave a website.  The idea is to provide customers with the same shopping experience as Amazon, and bring the trust, speed and convenience of the Amazon checkout experience to other websites and apps to drive conversion rates. It allows customers to have access to their 1 click shipping options and eliminates the need for creating new accounts, which can be the cause of poor conversions. It is especially compelling for mobile users and if your customer base shops on Amazon, introducing this new feature could speed up the checkout process and therefore increase conversions. Some of the main benefits of Amazon Pay include:

  • Provides the same experience as Amazon shopping
  • Convenient and provides a fast online purchase
  • Up to 90% conversion rate from the checkout stage
  • Responsive and mobile friendly solution
  • Trusted and secure payments from a trusted ecommerce brand
  • Easy to integrate

 

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So there you have it, payment gateways can play a big part in helping to improve conversion. Start looking into which gateways to install on your site to bring speed and convenience to your customers. If you want more information on Amazon Pay, then get in touch by giving us a call, sending us an email, messaging us on Facebook or tweet us.

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