Gone are the days when cash was the only accepted payment method for purchasing goods and services. The modern global economy has seen a major shift in consumer behavior brought upon by innovations in the financial technology sector. Despite this huge leap forward, online and brick-and-mortar merchants may be setting borders for their customers oftentimes without the slightest idea that they're doing it. By and large, diversification of your business' offered payment options may help address this prevalent challenge.
Streamline Checkout Process
Adding more ways for your customers to pay for their order can streamline the checkout process and, ultimately, lower your online store's cart abandonment rate. It can be frustrating for customers to go through the whole checkout process of adding items to their cart and then filling out the shipping and billing forms only to be derailed by a payment method not supported in their region. From a physical store point of view, offering cashless payment methods can also shorten checkout time of each customer since you don't have to accept the cash and dispense change. Customers simply need to swipe their credit/debit card and be on their way.
Attract More Consumers
Depending on your target market, there are various accessibility and convenience factors that influence people's payment preferences, such as prevailing mistrust in banking institutions in certain countries or ineligibility for certain banking services for specific groups in emerging economies.
Payment methods, like PayPal and Venmo, may be a widely popular payment option for U.S. transactions, but it might not be a common or even an available payment method in Southeast Asian countries, which primarily use methods like Western Union or WeChat Pay. For example, if you want to send money to the Philippines, you can use CompareRemit.com, a foreign exchange rate comparison website that will give you the best US dollar to Philippine peso exchange rate.
Improve Business Cashflow
Cash flow decides whether or not a business survives. Without it, your business cannot operate seamlessly. Using modern payment methods means that you can get money transferred into your account sooner, sometimes even instantaneously. For instance, by offering your customers the ability to pay through Western Union, they can send money online from anywhere in the world and at any time of the day, and you receive the funds in minutes. These money transmitter solutions can also automatically convert different currency exchange rates, which means you or your customers don't have to manually do it for every transaction.
Increase Brand Trustworthiness
Working with more payment providers can be a subtle way of increasing your brand's legitimacy. Payment processors, like Venmo and Cash App, are slowly becoming trusted brands in their respective sector, and building their own customer base in the process. By partnering with these brands, you can also win over customers who've yet to hear about your brand but are aware of what Venmo or Cash App is. This can be a good way to distinguish yourself from competitors who have yet to offer alternative payment options on their platform.
Double Up Diversity In Payments Processed
Diversifying your business payment options doesn't come without its challenges. Make sure you plan ahead for a seamless UX integration as well as find a reliable payment service processor that has transparent fees and customer / developer support. Overall, the more payments you accept from customers means the more payments you'll receive! It's as simple as that.
