3 Ways to Accept More Payment Options to Boost Your Sales

Consumers are becoming more tech savvy by the day, but are small retailers keeping up?

GoDaddy research found seven in 10 consumers say it’s important for businesses to accept contactless digital payments, for instance. Most small businesses (91 percent) recognize their business should be up-to-date with tech innovations, but nearly one in three small businesses don’t accept digital wallet payments.

Small business owners seem to be approaching payment technology as a nice-to-have, but that mindset is bad for business. Using outdated payment technology may unintentionally lead shoppers right out the door. Here’s what to keep in mind when auditing your own business’s payment offerings.

Make Checkout as Easy as Possible

Too often, consumers are ready to buy but walk away at checkout because the process is more time consuming than anticipated. How many times have you personally forgone your morning coffee because the line wrapped around the store? Or the store had a sign that said “Cash Only”?

In a 2023 survey, four in five consumers said they avoid patronizing a business with a line. Only 58 percent of those people would return later to complete a purchase, while 40 percent said they would go to a competitor or not make a purchase at all.

The same survey found Americans are in line at retailers more often than restaurants, pharmacies, doctors' offices, and banks combined. If you’re not offering fast and convenient checkout, you could be missing out on significant sales.

Payment technology can help. Consider upgrading your point-of-sale (POS) terminal to a device that can accept tap-to-pay and digital wallet options, which can significantly speed up the time at the register.

Don’t Alienate Any Customers

To retain customers and provide the best buying experience possible, you need to understand the payments landscape. According to GoDaddy research, consumers prefer to make purchases via:

• debit cards (86 percent);
• digital wallets (73 percent);
• cash (54 percent); and
• buy now, pay later apps (19 percent).

Digital payment methods are quickly growing in popularity, especially when it comes to Gen Z and millennials. In fact, we’ve seen businesses that use GoDaddy Payments for their online store see more than a 10 percent increase in sales due to offering Apple Pay or Google Pay. But half of your customers may still prefer paying with cash. The goal is to accept all types of payments so you don’t alienate any of your customers.

The data is clear: Small businesses have more success when they offer diverse payment methods.

Tap Into the Power of E-Commerce

It’s not just purchasing methods that you need to consider; it’s also where you conduct your business. More than four in five consumers say it’s important for small businesses to have an online presence and offer online ordering. Having a website establishes credibility, provides a platform for marketing, and makes your business more searchable and accessible. It also creates an opportunity for you to offer buy online, pick up in-store (BOPIS) and expand your reach to a new customer base.

If you’re interested in selling online and in-person, look for “smart” POS hardware. These devices connect your physical and online stores. For example, when a customer makes a purchase in-store, the sale and inventory counts will automatically sync with your e-commerce site. This provides convenience for your business and its customers, and will save you a considerable amount of time managing your business.

While competing with mega-retailers might feel daunting, the good news is that seven in 10 Gen Z and millennial consumers say they would shop at small businesses more if they offered the same convenience as larger chain stores. And it could be as simple as broadening your payment offerings.

Alex Avramenko is the head of commerce growth at GoDaddy, where he leads GoDaddy’s efforts to help entrepreneurs start, grow and scale their businesses.