Increase payment methods, increase sales

More and more Americans are opting to use alternative payment methods online, according to a recent survey by Forrester Research, and retailers should be aware that implementing multiple payment methods could increase sales.

by Helen Leggatt

A major reason for many online shopping carts to be abandoned at the checkout is that the shopper is not offered a suitable method of payment.

It’s easy for marketers to assume that most of their online sales will be made using a credit card. However, when you consider that 40% of offline sales are done using cash or checks it’s easy to see how this could also apply online.

Jim Hunt, enterprise merchant relationship team leader for PayPal, said that websites offering only credit cards at checkout stand to lose around 5% to 10% of buyers.

The reasons Americans are shunning plastic in favor of alternative payment methods such as BillMeLater and PayPal are varied. Over a quarter (28%) have security concerns when using their credit cards and others simply prefer the alternative payment methods because they are quicker and easier to use.

According to a recent survey by Forrester Research, 74% of online shoppers in America have recently used an alternative payment method online, and 53% of etailers said that providing alternative payment methods is a priority for the coming year.

Tags: checkout, credit cards, online payment, online shopping, payment methods