A business needs to make the checkout experience as smooth as possible to attract customers and keep them enticed. One way is to offer them a digital payment solution with multiple payment options, which they can use according to their requirements and preferences. Cash and credit cards are the most common payment methods. However, if a business accepts payments only through these options, it might be turning away customers who are more comfortable using other methods.
Accepting payments through multiple payment methods creates a better customer experience and nurtures repeat business. Here is an ultimate guide to payment options for businesses.
Benefits of Offering Multiple Payment Options to Customers
When a business offers multiple payment options to customers, it gets timely payment without hassles. Given below are the most significant benefits it may enjoy:
- Easy digital payment acceptance
- No need to handle cash in large volumes
- Direct settlement into the bank account
- Easy payment collection for large-value and frequent transactions
- Improved customer experience with easy online payment
- Remote payment with the right option
- No need to visit the bank to deposit cash
Different Payment Options Available
Here is a list of different options offered at payment checkout:
- Cash on Delivery (COD): COD payment option allows buyers to pay for a purchase at the time of delivery rather than making an advance payment. Many buyers in India still do not trust online payments or want to pay until they physically receive the product. For such customers, a merchant must give them the COD option.
- Debit Cards: Debit cards are bank cards that allow individuals to use the money available in their bank account for making payments. These cards save them from carrying cash.
- Credit Cards: Different banks and credit card companies issue credit cards to individuals, enabling them to borrow money up to their approved credit limit. Buyers can use their credit cards to pay for their purchase and repay it to the credit providers in card bills. This payment option allows people to make high-value purchases easily without paying its price upfront.
- Net Banking: Also known as online banking or internet banking, banks provide this facility to their account holders to avail various banking services online. It makes the banking services available on their smartphone 24/7 without visiting the bank branch.
- UPI or Unified Payment Interface: UPI is an advanced payment method that allows buyers to pay for purchases instantly from their smartphones. It works as a single platform that brings together multiple banking features, enabling real-time payments using a UPI ID, registered mobile number, and PIN.
- Digital Wallets: People commonly use this payment method to receive and send money. Users add money to their digital wallets and send it to other wallets or bank accounts.
- BNPL or Buy Now Pay Later: BNPL is a short-term finance option gaining popularity among consumers. It gives them the flexibility to make large-ticket purchases in EMIs without paying their price upfront. The credit period ranges from a few months to years, depending on the transaction amount and the BNPL facilitator.
Choosing the Right Payment Solution
Providing multiple payment options to customers is beneficial. The lack of payment options is one of the top 10 reasons for cart abandonment among consumers. So, it’s crucial to integrate a payment solution that allows the business to accept payments through all the payment options mentioned above and more. The payment option that a customer uses depends on a variety of factors: click here Prime Valley
- Preferred Mode: Different customers have different preferences for paying online or offline.
- Business model: Does the business accept payments for one-time purchases or recurring bills? The customer may opt to automate recurring payments from their preferred payment option based on the business model.
- Scope of Business: Businesses with grounds in international deals must accept payments in different currencies.
- Cost: Merchants must pay an ongoing or upfront fee for specific payment options. Therefore, they must compare the prices and select payment methods accordingly.
When a payment gateway makes it effortless to accept multiple payment options, there is no drawback in accepting all payment types from the customers. Offering payment flexibility to customers means attracting more sales, giving them a better payment checkout experience, and opening up opportunities to sustain and deepen long-term customer loyalty.