The payments universe has been growing exponentially. New forms of payment methods such as buy now pay later schemes (Klarna, PayBright), mobile or digital wallets (PayPal, Apple Pay) or direct bank payments (Interac e-Transfer® in Canada) are gaining popularity over traditional payment methods.
There’s so much advice out there for Shopify eCommerce merchants—how are you supposed to determine which ideas to implement right away, and which tips are just fluff? In this article, we will help you demystify the number-one way to measurably increase sales: by accepting more forms of payment that shoppers love.
If you’re like most e-commerce sellers, you had a lot to do to get your store up and running. One of the first decisions you faced was your merchant services (accepting credit and debit cards), which you set up and probably promptly crossed off your list.
Well, it’s time to put payments back on your to-do list. Our new infographic, Fast Facts: Best Online Payment Strategies, explains why and how to choose a payment method. Here’s a brief overview.
First and foremost, if you’re counting on credit card payments to grow your business, don’t. According to Payments Canada, shoppers are using their credit cards less frequently—use is down 11%—thanks to post-pandemic uncertainty and financial worries (see source). But shopping with Interac e-Transfer is up, and it’s the fastest-growing payment method online as per a survey conducted by Leger/Payments Canada.
In fact, 60% of Canadians use e-Transfers regularly, even daily. It’s a trusted brand and a deeply loved and preferred payment method. That’s why, if your customer base is even partially in Canada, you need to accept Interac e-Transfer.
“60% of Canadians use e-Transfers regularly, even daily. ”
You’ve probably recognized that credit card transaction fees are a cost of doing business. They are—but you can also save money by shifting purchases to lower-cost methods. For example, a $150 purchase via e-Transfer will cost about $2.62, arguably one of the lowest merchant fees out there. On the other hand, Buy Now Pay Later (BNPL) is a popular option, and worthy of your consideration, but you’ll pay dearly for each transaction; the typical BNPL merchant fee is a whopping $9.30 per $150 purchase.
A cost comparison of the most popular payment options is included in the infographic, Fast Facts: Best Online Payment Strategies if you’d like to learn more.
From Gen Z and Zoomers to New Canadians and Expats, each target demographic has different payment preferences. For a Shopify store, the whole world is your market—so hopefully you’ve narrowed it down to a few specific customer profiles. Using the profiles in the infographic, you can see which payments will suit your business best.
In general, payment preferences do align with life stages. Think about Millennials and Gen X, who are in their family- and career-building years. They love getting rewards and points—“freebies” are both practical and fun to earn—because budgets are typically tight during these years. While these groups will use credit cards, they do so cautiously, preferring to spend the money they have instead of money they don’t.
Of course, you do. Well, the great news is that including more payment types will increase your conversions, keeping more full carts moving all the way through to purchase.
Over half of online shoppers—52%—say they ditch their carts as soon as they see that they don’t have a preferred payment option. And even more people, a full 55%, hit “payment friction” and bounce out of a checkout process. This payment friction includes being required to enter too much personal data (including credit or debit card numbers) or being forced to take multiple steps to pay, such as downloading an app first.
In Fast Facts: Best Online Payment Strategies, you’ll get all of the insights you need to decide how to update your payment options. Topics include:
Packed with facts, this infographic takes a plain English, practical approach to consumer payment preferences. Stay a step ahead of your competition by evaluating your options and implementing the payment methods that your customers want. And when you’re ready to add Interac e-Transfer with DirectPay, you’ll find us in the Shopify App Store.