10 Mar

By Aditya Williams

Category: B2B Payment Processing, best high risk merchant account provider, best high risk merchant services, Best Marijuana Merchant Accounts, Business plans

Why it makes perfect sense to offer alternative payment methods Comments Off

Why it makes perfect sense to offer alternative payment methods

Smart business concerns today are opting for the alternative payment methods because of the ease of transactional methods that it offers the customers. The days of cards ruling the waves as a means of payments are gradually becoming old fashioned. Wish business executives now introduce alternative pay to their routine of payment options. Why is this so?

Additional Recurring Revenue

Imagine you just set up an online store and the efforts put into setting up the outfit is now yielding results with customers on the queue to patronize you. Now, Mr.  X wants to pay for the items he ordered and at the checkout page; he clicks on the subscribe button and his card is telling him error; you will lose him to other brands. But if he encounters an issue with the card and his spots pay using other options, it will be convenient for him to make use of the alternative. By so doing, you are not going to lose the customer.

When we look at the scenario very clearly, it will interest you that it will profit any business endeavor of today if they consider adding the alternative payment method to their line of payment options. What is the benefit of this option over a singular payment option? The following reasons are strong enough pointers in support of this:

Stringent Rules

This is the number one factor that will stand against business and the benefits of getting the customers in their large numbers. With a SaaS business based in the US, if you are serious about selling to companies all over the world; you have to consider the stringent payment rules in some countries and take necessary actions if you do not want t to lose some prospective clients to card error. However, with payment option like PayPal which works across several boundaries, you may not bother to sell to specific countries.

Boost in Sales

Going for certain popular payment methods in the mold of PayPal Express Checkout will surely give you a push in sales. Our analysis is on the growth that the customers had achieved by using the alternative payment methods. It was glaring that the customers have seen a rise in month-on-month transactions.

When the actual figures involved are looked at critically, it shows some very interesting scenarios in an upward surge. When we dipped into the actual numbers, it was evident that reasons like seasonal jumps as well as marketing campaigns. The stats show that customers on an average have witnessed a 46.8% hike (month-on-month after offering PayPal) versus a 14.28% growth (month-on-month by offering credit cards) in their rate of transactions after they added PayPal Express Checkout as an additional payment method onto their sites. This is an impressive number bearing in mind that for a period of the first 5 weeks of putting the alternative method of payment into operation.

Global Relevance

If your business cuts across several boundaries, then you will require a payment option that takes care of your interests across these boundaries. When you opt for an alternative payment method, your interests will be best protected when the users want to pay online for goods that they ordered. When you opt to offer an alternative payment method like PayPal or Amazon, it would be your best bet as this would allow accepting payments universally. PayPal can boast of around 148 million users across the world. This a huge market base.

Trust Factor

Not every prospective customer will be comfortable, using their cards to transact business online. A reputable payment method like PayPal would make customers feel safe and secure. The inclusion of familiar brands will give your business an edge over the competitors in your notch. The trust factor of your service/product will be boosted.

Too Long, Can’t Fill

The majority of today’s customers prefer a faster and very simple checkout process, therefore asking them to fill out a lot of information can be tasking for them. Going by the KISSmetrics’s case study based on conversion optimization techniques, when you redesign your checkout page and have the customers fill in little information would lead to a great boost in sales. When you have PayPal as an option, the customers would simply need to input their email-id and confirm their subscription. As for all the necessary procedure needed to complete the transaction, it can be pulled from their PayPal account.

So, why wait for divine intervention?

There is nothing of such in the business world of today. Making your site open to alternative payment options will ensure more customers taking to you and your business will be on the upward swing. The issue of confidentiality will not be a problem to your customers dealing with your check out page. Most of today’s online buyers are in a haste. When you ask them to fill a form before they can make payments; they will simply ignore you. Therefore, to be on the save side of the business, give them what they desired and they will, in turn, be very loyal to your brand. There are no two ways about that. Chargebee will make it extremely easy for your business to support alternative payments like PayPal Express Checkout and Amazon Payments. When you give such a trial; you will definitely reap the dividends.

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