More Payment Options Can Mean More Business

What is it that makes you buy something from a particular website? Is it the low price of the desired item? Maybe it’s the design of the website that allows for quick and simple shopping? Did you ever think that it could be methods of payments that you offer?

Surprisingly, offering several methods of payment on your website can increase the likelihood of a purchase. According to a recent study done by CyberSource, North American online businesses with four or more options for payment see an average sales conversion rate of 72%. The following data outlines the decrease in conversion rate corresponding to a decrease in the number of payment methods offer.

So what is the payment method of choice? According to CyberSource, 99% of online businesses offer a general-purpose payment, which includes the common credit cards like Visa, MasterCard, American Express and Discover.

Types of Payment Methods Offered (% of respondents):

General purpose cards 99%
Gift certificates 46%
Recurring billing 41%
Electronic checks 27%
PayPal/other non-card 25%
Instant credit 19%
Private label card 14%
Source: CyberSource, May 2004

Internet shoppers like to have a choice of payment for their new iPod, airline tickets or online dating services. With all the concerns today about identity theft, some people may not be so quick to give a credit card number online, so offering a wire transfer or billable option may ease the minds of those not willing to jump on the credit bandwagon.

If your business currently offers a good mix of acceptable payment options, you are well ahead of the mainstream! Your customers probably really like that about your website. If you only allow your customers to pay with a Visa, maybe you should consider accepting other forms of payment so you don’t miss out on the business your electronic check-accepting competitors are getting.