Online payment options to make your store profitable
These days, your business needs to have the right mix of online payment options for consumers shopping the web or scheduling recurring payments with you online. Well-known options like PayPal have become a staple for online stores, but it’s important to realize that there are other options available. Read on for several online payment options you may want to consider to help make your online store a booming business.
If you accept payments online, PayPal is worth considering due to the sheer volume of transactions they process and the overall customer trust in the payment format. Consider these statistics from July 2015 research from Boston Retail Partners:
- 40% of North American retailers accepted PayPal
- 31% plan to accept PayPal within 2 years
- 7% plan to accept the payment format within 3 to 5 years
What’s more, Paypal’s annual payment volume was $150 billion in 2012 and was up to over $281 billion by 2015. Customers know and trust the PayPal brand. They enjoy the convenience of only having to enter their PayPal account credentials to pay for an online purchase, rather than having to fumble through their physical wallet and pull out a card. Using PayPal also provides peace of mind to consumers in that their payment data is not actually shared with the online retailer because PayPal stores, handles and transmits all of that data.
Accepting eChecks in your online store can be a nice alternative payment method you can offer your customers. Basically, eChecks are electronic checks that authorize the debiting of funds from your customer’s bank account, transfer over the ACH (automated clearinghouse) network and credit into your business’s bank account. eChecks can both cut down on your processing fees and provide another payment option to customers who don’t have or prefer to not pay using cards. Some customers may prefer eChecks to credit cards for recurring payments—such as subscription services—or for big ticket items that they don’t want to put on a credit card.
The "Pays" in-app
Popular device driven payments such as Android Pay and Apple Pay are not only steadily gaining traction, they're available as online payment options in the form of in-app payments. As more devices drive not only discovery but purchase transactions, integration of these payments forms in-app appeal to the customer demographics most steadily adopting them as preferred payment methods.
The list of online payment options certainly extends far beyond the options presented here. The payment methods that will likely be most profitable for you depend on your business type, your processing volume, your customer demographics and other factors. Work with your payments processor to determine which online payment options you should offer to help ensure the future growth and success of your business.