Offer Buyers the Right Payment Processing Option

According to Javelin Strategy and Research, 30% of all online retail purchases will be purchased using alternative payment methods by 2013. Credit card transactions will continue to be an important part of ecommerce. However, credit cards market share is slipping as alternative payments continue to gain popularity.

Merchants need to evaluate which payments options are used most frequently by consumers in each country where product is being sold. That payment type is the one that buyers recognize and trust. Merchants immediately establish credibility when buyers can chose their preferred payment method at checkout. For example, in Germany direct debit is the most popular payment type. Therefore, merchants should place direct debit as the first payment option in Germany.

Mobile payments are all the rage in the news. But, mobile payments are still very much a niche market limited to merchants selling low ticket digital goods. These merchants absolutely should offer mobile payments. But, until the mobile carriers reduce fees charged for mobile commerce, there is little application for the majority of merchants.

However, mobile phones will be used as electronic wallets. Direct debit, credit cards and other payment instruments are already being linked to mobile phones. Emerging markets do not have a payment processing infrastructure in place, but, everyone has a mobile phone. But, mobile ewallets are more for the future than for today.