Within the next three years, 30% of all Americans will an alternative payment method when making purchases online rather than cards. In the US, echecks are the most common alternative payment option offered by internet merchants.
Many countries internationally do not traditionally use cards when purchasing online. Bank transfers are commonly used throughout Europe and other parts of the world.
The rapid rise of alternative payment solutions for online merchants is easy to understand. The more payment options a merchant offers at checkout, the more sales will result.
Providing consumers way to purchase regardless of the way they want to pay is simply good business. Smart merchants offer to accept almost any payment method that a customer wants to use.
Aside from getting orders from customers that don’t have cards, alternative payments are less expensive than card processing. For instance, it is less expensive for an online merchant to accept payment for direct debit from a checking account than it is to accept a credit card payment.
Alternative payments are also not subject to chargebacks in the same way as card payments. For instance, a consumer paying by electronic check can dispute the transaction only for 60 days whereas one paying with credit card can dispute the transaction 180 days.
Internationally, local bank transfers virtually eliminate the risk of chargebacks. It is almost impossible for a buyer to deny purchase was made after the transaction is authorized. In terms of guaranteed funds, local bank transfers function like cash transactions.
For those organizations providing merchant processing, not offering alternative payment options limits the number of new merchants that are interested in their services. Considering that card processing is almost completely commodity driven these days, providers make much greater profits from alternative payments than cards.
Adding alternative payment processing solutions is an important way to differentiate you from your competition. Offering your portfolio of merchants multiple ways to make money with alternative payments increases their revenues. While increasing your income and maintaining long-term portfolio profitability.
According to UK payment:processor Worldpay, alternative payments account for 22% of global payment transactions. The alternative payment market is expected to grow 13% by 2015. Within eCommerce, alternative payments will exceed card payments.
The more ways buyers can purchase from you, the more sales you will make. When you offer alternatives to card payments you:
Adding alternative payment methods at checkout is the fastest and easiest way to increase your profits. Add echecks for your US customers and local bank transfers for your international customers and watch your sales grow.
Are you interested in giving your customers additional ways to buy from you ?