3 Ways Web-Based Payments Benefit Customers and Retailers
Mobile is where most online customers like to shop, having recently surpassed desktop in traffic volume. However, the process isn’t always streamlined, which is most evident in smartphones’ lower conversion rates. Browsing and adding items to a cart is fun, fast and easy. Checkout is another story.
Checkout is a major headache in mobile buying … at least it used to be. Native payments for the web are changing that, with both Android and Apple making payments possible with just a fingerprint. These technologies make it faster and more fun to buy on mobile than on desktop computers, eliminating the need to fill out repetitive forms and promising to dramatically change the mobile commerce landscape. In this respect, mobile is jumping ahead of desktop, with similar technologies not expected in desktop browsers until 2017.
Major retailers, like Target, are already seeing success with the platform. Going into 2017, retailers with good mobile commerce strategies are positioned to take millions in revenue away from competitors with outdated mobile checkouts.
Encouraging Web-Based Payments
Paying should be the easiest, fastest part of the shopping journey. After all, your customer has already made a decision; it’s time to get out of the way. Windows of opportunity to engage with your mobile visitor are measured in seconds. Once your customer’s choice is made, every second of delay increases the chance that you’ve missed the opportunity to close the deal.
Rethink your entire shopping journey, starting from very early in the shopping process — in some cases, as early as your product listing pages.
Let customers know you support their favorite payment methods early in the experience. Always provide only the payment options supported by customers’ devices, and prioritize the presented options based on what’s most likely to be used by that customer. For example, Apple Pay is only supported on iPhone 6 or newer devices, so implement systems that recognize which devices customers are using.
Depending on your customers’ behaviors and average items per order, you may even want to bypass the usual cart-and-checkout flow and offer immediate payment from the product list or product description pages.
Here are three ways web-based payments benefit your customers and your bottom line:
1. Speedier purchases: Retailers that adopt mobile payments have a major advantage with consumers. Checkout is faster and easier, increasing the likelihood of a purchase. A recent Chase study found that mobile web payments decreased checkout time by up to 40 percent. American Express found self-service transactions happen 53 percent faster than traditional credit card payments.
2. Convenience: Studies show that the rate of cart abandonment exceeds 60 percent on many websites. The overall app ecosystem provides a glimpse into how shoppers react when they get better checkout experiences. Mobile apps that have native payments through Apple Pay and Android Pay can convert at the same rates as desktop websites — or higher. Event-ticketing app SeatGeek, for example, has a conversion rate of up to 30 percent with its updated checkout page. With Apple Pay, it increases to 80 percent.
3. Streamlined loyalty programs: Web-based payment apps can store information that’s usually attached to keychain tags or punch cards so customers don’t have to track it. Furthermore, linking payment information to your loyalty program will drive repeat business and boost revenue. A recent survey found 94.4 percent of customers would use mobile wallets more often if they could earn and redeem loyalty points or miles with every purchase.
Promoting web-based payments will ensure your e-commerce success. When the checkout process is easy, customers make more purchases — and everyone benefits from that.
Peter McLachlan is co-founder and chief product officer at Mobify, a mobile shopping platform that helps enterprise retailers create unique shopping experiences at every mobile touchpoint.