We’re about to wrap up 2019 and things keep changing fast in the world of ecommerce. Have you noticed how your customers are paying these days? Customers are increasingly expecting convenience and it is likely any merchant offering only basic ecommerce payment options such as VISA or Mastercard is hindering growth. In this article we’ll explore a bit of recent statistics and what it means for any ecommerce retailer.
Cash payments decrease, Credit card, ATM, and ACH increase
largely based on data from the creditcards.com report : this trend have been around for a while. Some consumers are still holding back for security concerns. However, the newer generations have increase adoptions of credit cards, atm cards, and digital payments including peer to peer payments in a digital form (Paypal and Venmo come to mind). It seems there’s a bit of demographics to be aware here: lower income will tend to use ATM and CASH more often than higher income which will tend to use Creditcards and digital wallets more often. There’s also generational gap with younger ones using credit cards and digital wallets more often.
What does this mean?
You might want to evaluate your target demographic and based on that you should offer as many payment options as is relevant to your specific demographic. It really depends who shops at your online store. Most ecommerce stores have setup with the basic credit card offerings. However, it is good to re-evaluate and see if you need to add payment options.
US Proximity Mobile Payments Increase
directly from their article: “KEY STAT: This year (2019), the number of US proximity mobile payment users is expected to reach 64.0 million, a 9.1% increase over 2018 and representing 29.0% of smartphone users.”
One thing is certain, any ecommerce retailer who wishes to take advantage of this technology and simplify the checkout process for these customers would probably gain a few happy customers.
Apple Pay Growth is Accelerating
Apple pay allows any iPhone user to add a credit card or a debit card and use it on most in store checkouts. Apple Pay with the new security chips embedded in the new line of laptops allow a faster checkout with online purchases as well. This fuels tremendous growth and as the title of the article  says: “Apple Pay transaction volume growing 4x as fast as PayPal,” Tim Cook says. That’s impressive.
This means that any ecommerce store operators must consider Apple Pay as a payment option. Luckily this will be covered by some payment processors but in most cases there are some technical elements to be considered when setting this checkout payment option.
Ecommerce Payments Made Simple
By now, your head must be spinning. Let’s try to simplify this and how to approach payments on your website(s):
- Do you currently offer ALL major Credit cards as payment options? VISA, Mastercard, American Express, Diners, Discover?
- Do you currently offer Debit cards (at least in the US)?
- Do you currently offer Paypal?
- Do you currently offer ACH? Before you rush to do it, make sure this is important for your customer demographic.
- Is your checkout ready for digital wallets?
- Do you currently offer Apple Pay? Google Pay?
- Technical detail that is often missed: does your checkout automatically offers customers to save their preferred payment method for future transactions?