Advantages Of Alternative Payment Methods
Economic growth has no limits in the current financial system. Customers and sales are coming out of nowhere, creating new opportunities for both market leaders and emerging companies. Despite further advancements and outages in AI, financing technology and real-time payments, online retailers continue to set limits for certain customers without being conscious of it.
In general, digital payment issues can be best addressed by offering online and B2B shoppers different card payment options and alternative payment methods.
Necessity for alternative payment methods:
While card rejection is a serious threat, not all of them are inherently bad. 65 percent of buyers say customers who don’t pay will continue to use the new payment method instead of abandoning the deal altogether. The fact is, card decline isn’t actually a failed purchase. It is very important for merchants to have multiple payment options if they want to keep their cart abandonment rates as low as possible. Offering outright alternative payment options in the event of a transaction being rejected is widely practised in many niche industries. It is not easy to decide which payment system to implement as an option if cards are declined. In 2017, the loss of an acceptable payment option accounted for 19 percent of all abandoned options. So choosing the wrong option can lead customers to abandon the purchase instead of encouraging them to follow through.
Advantages of alternative payment methods
There are numerous benefits of alternative payment methods. However, the overall benefits are summarised for better efficiency:
- More income
- Fast and efficient payment
- Retains new consumers
- Increases autonomy
- Low chargeback
- Greater consumer confidence – when management is flexible and efficient
Common alternative payment methods
There are hundreds of payment systems used by people all over the world. In e-commerce, they can often be divided into several main categories.
- Bank Transfer: While bank transactions seem to take many days and a lot of effort to set up, internet banking has boomed and payments are fast and easy in many regions of the world.
- Debit Cards: Around the world, banks discriminate between credit and debit cards, so e-commerce websites ask customers to choose the type of card they can use. Consumers who try to buy a debit card on a platform that doesn’t recognize each other may experience difficulties, so their bank may not be able to complete the purchase.
- Paying in person for online media purchases: It is popular for citizens to place a digital order and pay for it in person at a store.
Choosing and plugging in the best payment gateway service is not as difficult or costly as recognizing the business requirements and getting it right has a direct and important impact on consumer experience, well-being & brand productivity. All you need to do is to identify the above considerations before choosing and identifying the best payment gateway service.
Get more sales with OnionPay
If you are looking for the most reliable Indian payment aggregator, OnionPay is the best choice for you. Owned by Zhudao Infotech Private Limited, OnionPay is a PCI DSS Level 1 certified digital payment gateway that offers an excellent payment experience as well as multiple payment options.