Rohit Katyal heads business at Easebuzz. He is a Sales & Business Development professional with more than 20 yrs of experience in Fintech, Digital Payments, Retail Banking and Insurance with functional exposure in P&L, Revenue generation, Strategy management, Corporate sales & Alliances, Direct Sales, Channel Management, Product management.
Payment mechanisms are an essential part of every eCommerce business. With the rapid digitalization, the payment landscape has evolved multifold with new-age payment methods, UPI, mobile wallets, mobile payments, and other digital payment options. In today’s world, no business relies on cash payments solely. The instant, accessible, and secure payment solutions further accelerate this change. Gradually, more eCommerce platforms are optimizing purchasing and payment processes to increase sales.
Over 2.1 billion people use digital solutions to make payments or send money. With the increasing traffic on the eCommerce platforms, businesses need to optimize their payment mechanisms. Around 50% of the buyers leave the website mid-checkout just because they don’t find their preferred payment methods. Therefore, opting for efficient, secure, and scalable payment gateways is essential. A seamless transaction experience is undoubtedly one of the crucial ways to enhance customer experience.
Here’s a list of some of the most-preferred payment methods for eCommerce:
In the eCommerce sector, credit cards are the most commonly utilized payment method. It’s no surprise that credit cards are popular for online purchases because they’re simple to use and completely safe.
After credit cards, debit cards are the second most popular payment method for online purchases. While the purchasing method is the same, debit card payments allow consumers to spend only the funds or savings in their linked bank account.
E-Wallets, often known as digital wallets, allow internet buyers to make purchases more quickly and easily. Consumers can integrate their e-wallets with bank accounts for seamless transactions.
Customers who have signed up for internet banking can use it to make bank transfers to pay for their online purchases. Customers must authorize and authenticate bank transfers, making them the most secure payment option.
To set up a mobile payment method with this payment method, clients only need to download software and link it to their credit card. As eCommerce becomes more mobile-friendly, customers find it easier to use mobile payment options.
How to select the right payment platform for business
Businesses must choose the right and appropriate payment platform to process online payments. While helping businesses to accept online payments, it should also ensure a seamless checkout process for customers. A payment gateway validates customer’s detail and ensures that payments are deposited correctly. It serves as a link between a merchant’s website and their payment processor.
A good payment gateway simplifies the payment process and acts as a go-between for the customer and the merchant, keeping the payments ecosystem running smoothly. Therefore, eCommerce businesses should opt for an easy-to-integrate payment solution that provides 3D security and products customer and business data.
Moreover, PCI DSS compliance is an important factor that minimizes the scope of fraudulent activities. For every online business, credibility is essential to retain customers. This requires a PCI-compliant payment gateway that controls sensitive data storage and facilitates the security of all online transactions.
Some payment gateways also offer value-added services like auto-refund, split payments, instant settlements(T+0) etc. While improving business processes, it also helps in providing a best-in-class customer service experience.
Almost all customers want a hassle-free payment process. The absence of an optimized payment platform usually results in a high percentage of cart abandonment. Offering a range of one-tap payment solutions will reduce last-minute cart abandonment while improving the customer experience. Also, providing multiple payment methods increases sales since consumers can opt for an alternative payment method if one fails. This adds value to the eCommerce brand while increasing customer retention and revenue.