Technology has had a major effect on the ways in which people buy products. Instead of waiting in line at a coffee shop, more customers are using mobile payment apps to order, pick up, and pay for their food and drinks. Making a purchase no longer involves a simple exchange or currency, or even a debit or credit card transaction. Instead, people are using a host of new methods that complicate the buying and selling process.
The same underlying causes have affected e-commerce-based merchants. In past years, credit cards reigned supreme over online stores. If you were a consumer who didn’t have one of these cards, or a merchant who couldn’t accept them, you were largely shut out of internet shopping. While these payment options still play an important role in e-commerce, they aren’t as dominant as they once were.
Today, a new set of payment solutions has emerged to serve consumers’ needs. These platforms don’t adhere to the same conventions or rules that previous methods did, which is where their appeal lies. They disrupt business-as-usual transactions and allow customers greater freedom and control.
If you want to learn more about these innovative options, read on. The future of your business could lie with alternative payment solutions.
1. They Don’t Require Up-Front Credit Card Payments
When a customer abandons their online shopping cart, it may be an issue of being in the right place at the wrong time. Consumers can often only pay for an object at certain points. If they visit your website before or after those periods, they might as well not visit at all.
Alternate payment solutions eliminate time-based problems by allowing shoppers to forego up-front credit card payments. If a consumer wants to buy an item but can’t afford to pay off an outstanding balance, they can still make the purchase and pay up to two weeks later. This ensures that businesses make more sales and accommodate their clients’ needs.
2. They Offer Greater Safety (for Customers and Merchants)
It’s easy for a merchant to underestimate how dangerous an online credit card transaction can be. Retailers face consequences if their actions lead to a credit card breach, but otherwise, they don’t face many negative consequences for a breach. Customers, on the other hand, can have their entire lives destroyed by an insecure transaction.
For example, cybercriminals can use key loggers and other methods to steal credit card information. This can result in fraudulent purchases that may cost a victim thousands of dollars. These cases aren’t isolated incidents, either. In 2014, major retailers from Staples to Home Depot experienced data breaches of some kind. In many cases, the perpetrators took payment card numbers that could be used to commit further fraud. In others, such as a U.S. Postal Service hack, cybercriminals stole social security numbers that could have been used to steal identities.
These examples all show that security is in great demand when it comes to online shopping. Alternative payment solutions don’t require credit card numbers up front, making them less vulnerable to these tactics. While features like pay later options may worry merchants, they’re ultimately protected as well. Processors tend to cover any neglected payments, so all sides can rest assured that their money is safe.
3. They Give Consumers More Choice
Flexibility is important for businesses. Consumers want to spend their money on their own terms. If you try to force them to do otherwise, they’ll probably seek out your competition instead.
Merchants who adopt alternative payment solutions understand this idea. They know that the sales process revolves around customers’ needs, so they do their utmost to appeal to these desires. Alternate payment options allow them to offer their shoppers more payment methods, which ensures greater customer satisfaction.