What merchants need to know about how consumers want to pay

Wondering how to cater to customer preferences when it comes to payment options? You’re not alone. Here’s what you need to know.

With the accelerated evolution of digital payment options, it’s easy to find yourself wondering if you’ve chosen the right payments solution for your customers.

Customers want flexibility. And through our discussions with merchants, we’ve found that although they want to cater to their customers, they’re worried. Their big question is – what’s the best way to meet customers’ payment preferences without overhauling current business systems?

Many merchants assume they need to sign on to all the payment options but according to research conducted by the Baymard Institute, 26% of shoppers will abandon a cart because it is too long*. With hundreds of payment providers available, it’s impossible to offer every one. That’s why partnering with a payments provider that offers comprehensive payment options is the best place to start. 

Why the shift in payment preferences  

Since the debut of digital payment options like e-wallets, subscriptions and buy now pay later (BNPL), merchants have kept pace with offering their customers new options. But since Covid and the influx of online shopping, consumers have adopted the latest payment options to fit their changing buying habits at warp speed. 

But it’s more than Covid and online shopping driving the change.

Younger generations don’t want to be burdened with debt like their parents. They want to pay with their own money and eliminate high interest rates. They want to control the temptation to overspend and start managing money more sustainably.

There’s also a large percentage of consumers who don’t qualify for credit in the traditional sense.

The latest payment choices like subscriptions, split payments and flexible payment options mean consumers are in control of their spending, and merchants can create an easy entry point leading to responsible shopping. 

Meet customers where they are, however they pay. 

What-merchants need-to-know-about-how-consumers-want-to-pay-5

Making it easier for merchants

As we shift more from in-store to online for small businesses to enterprises, the new payment landscape leaves millions of merchants struggling to keep up. In every aspect of the customer journey, merchants strive to reduce friction and make the process easy and efficient. Checkout is no exception.

But hesitancy in offering more and adding the newest payment options is real. Change implies increased costs and restructuring intricate systems. And multiple payment providers mean more effort is required to reconcile with third-party systems and manually calculate profit across product lines and services.

These are valid concerns and areas that can add ongoing staffing costs with the potential to diminish profits. The good news is that merchants have the choice to select a comprehensive payment provider, like Limepay. 

A comprehensive provider offers multiple payment options for customers and a unified payments dashboard for merchants. It keeps transactions and sensitive financial information more secure and private, and the flexible integration with expert developers means merchants need to worry about one less thing.

Merchants can easily add Limepay to their site using a plugin available on leading ecommerce platforms, and Limepay’s technical team is available to support bespoke solutions.

Benefits of a customised and branded payment platform

Advanced growth opportunities unfold when merchants adapt to the shift in payment preferences. When you can offer customers a more secure, easier and faster way to pay, all under your brand name, you’ll quickly build loyalty, increase conversion rates and reduce churn. The right combination of payment solutions gives your customers what they want, reduces friction throughout the buying journey and reinforces your brand as one to trust.

With a brand-first payment solution, customers don’t need to decide on a payment provider because the payment solution is provided under your brand, not that of a third-party they don’t know or trust. After all, customers trust and want to do business with you, not your payment provider.

What’s more, behind the technology that makes it easier for the customer is market segment data ready to help you make strategic business decisions.

If your customers are requesting the following payment methods, consider a payment platform that gives them the confidence they deserve to spend wisely but also provides merchant-focused benefits. 

  •       Once off payments like Pay Now or Pay Later
  •       Instalments allow them to Buy Now, Pay Later
  •       Repeat payments in the form of subscriptions and memberships
  •       In-store payment options like they get online 

To modernise your payment technology, contact the Limepay sales team about getting started with your brand-first payment platform.

 

Book a Limepay Consult

*https://sleeknote.com/blog/cart-abandonment-statistics

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