Unlocking the Power of Payments for E-Commerce Growth and Revenue

As e-commerce continues to grow and evolve, it becomes clear that checkout is no longer just the end of the online shopping experience but rather a key factor that can make or break a business due to its direct connection to the overall customer experience.

A recent Paysafe survey with sports bettors found that quick and easy payouts trump all other factors for North American and U.K. online players when selecting a sportsbook, with 36 percent indicating that this would be the first thing they would look for. Availability of preferred payment methods was also a factor for 27 percent of bettors and prioritized over a sportsbook’s sports markets and team sponsorships (11 percent for both). This shows just how important payment options have become in the e-commerce landscape, especially in industries like online gaming where trust and security are paramount.

Expanding the Addressable Market With More Payment Methods

As e-commerce platforms expand geographically, they need to manage the increasing complexity of the stream and the operation in different regions of the world while adding multicurrency processing and compliance. Entering a new market means that these merchants need to understand the new operating and regulatory environment and offer payment options that are typical to that region.

Enabling eCash, for example, is vital for businesses that operate in countries with a high unbanked population, as it expands the merchant’s offer to address these customers’ payment needs. Also, enabling real-time bank transfers is essential for e-commerce in Latin America due to the consumer base’s preference for this payment method.

International online merchants also need to be aware of hidden costs associated with global payment transactions, such as fraud, risk and compliance. Large payment processors bring global payment platforms that facilitate payment options in most markets, which cover card acquiring locally and internationally, bank transfers, wallets, and cash to digital, all within a large banking network connection worldwide. A payments provider can simplify this operation through an API connection that brings that capability without the need for the merchant to have legal entities in each country.

Ease in Payments Increases Conversion Rates

It’s happened to most people: one day they're buying online and their preferred payment method either gets quickly accepted and the transaction is successfully processed or they're presented with a declined transaction.

Digitization has brought the expectation that transactions will be quickly processed, and customers expect confirmation within seconds. In many cases, as supported by the Paysafe iGaming study, consumers will abandon a cart because their preferred payment method isn't available or may choose to take their business elsewhere due to a good checkout experience.

To keep up with these changing preferences, e-commerce platforms need to offer a range of payment options that cater to the needs of their customers. This means going beyond the traditional credit and debit card options and offering alternative payment methods like digital wallets, eCash or bank transfers.

E-commerce platforms also need to have a payments orchestration process to address declined transactions. At the back end, there can be choices around whether the payment will be routed to another processor or default to another payment method. In a highly competitive market, the customer needs to be presented with alternatives that transmit agility and security shortly after facing the friction of a declined transaction. By offering multiple routing options through a payments partner, businesses improve the overall experience for their customers and raise their chances of acquiring customers.

In conclusion, payment options are now a critical factor in attracting more customers and increasing conversion rates. By offering a range of alternative payments, efficient payments integration, and payments orchestration that cater to the needs of their customers, wherever they are and however they like to pay, e-commerce platforms stay competitive and gain an advantage by offering a premium shopping experience.

Rob Gatto is Paysafe's chief revenue officer, overseeing global sales function across various high-growth sectors such as gaming, travel, entertainment, fintech, and digital assets.