This guide outlines the best practices for managing payments for the booming online marketplace.
According to the latest projections, the e-commerce market is expected to skyrocket by 2026. Though the COVID-19 pandemic is often cited as the catalyst for driving e-commerce to the giant industry that it is today, it’s safe to say that in the future, consumers will continue to patronize online businesses for goods and necessities.
And although cash-on-delivery or COD still remains king for most of these transactions, buyers have also become partial to digital and cashless payments like card payments, e-wallet payments, and QR code payments.
For startups and entrepreneurs of small and medium-sized businesses that serve customers online, now’s the time to capitalize on the growth of the e-commerce sector and offer a greater variety of payment options to an increasingly tech-savvy target market.
Given situations where your payment options may be the deciding factor for whether a customer chooses your online business over someone else’s, it’s in your best interest to run a flexible, multi-option way of managing payments to boost your business and expand your reach.
Strategies for managing payments
To that end, here’s a briefer on running a robust and adaptable payment system and making your business more inclusive to customers with different payment preferences.
Choosing the Right Payment Solution
Selecting the appropriate gateway for managing payments is a vital step in effectively collecting online payments. Maya Business, a Philippine-based financial technology company, provides easy-to-integrate payment gateway Shopify-based businesses can trust.
With no coding required, this plug-in gives Shopify merchants the option to allow customers to pay via credit or debit card and various electronic wallets developed by different fintech companies. As such, customers are free to use their preferred method. This level of flexibility enhances customer experience and brand loyalty.
5 best practices for managing payments
1) Provide a Variety of Payment Methods
To cater to diverse customer preferences for managing payments, it’s essential for you to offer a range of payment options, whether you’re using Shopify, Magento, or another e-commerce platform for your online business.
Customers who have yet to fully embrace digital wallets may still want to pay using their credit cards or debit cards, while more tech-savvy ones may prefer digital wallets or online bank transfers.
Providing multiple payment methods through third party payment gateway Shopify plugins and other upgrades will help you attract a wider customer base and increase conversion rates.
If you offer multiple ways to pay for your products and services, you can also expand your business to accommodate unbanked customers who may only have savings in their e-wallets on top of their cash.
Despite the number of commercial, rural, and government banks in the Philippines, for example, 44 percent of the population remains unbanked for various reasons. You will definitely help your customers from this sector of the population get the goods and services they need by proffering choices for managing payments that are the most convenient for them.
2) Ensure a Smooth and Secure Payment Process for Customers
To build trust and prevent payment disputes or chargebacks, you’ll also want to be conscientious about protecting your customer information and keeping accurate records in managing payments.
Be sure to implement fraud prevention measures and use invoices and receipts as supporting documents for your customer transactions. Assure your customers of a safe and reliable payment experience whenever they buy from your online business.
It would be good for your business to partner with a reputable Shopify payment gateway provider like Maya Business so that you and your customers can benefit from secure encryption and fraud protection features during payments. One example is to include a means of verifying your customers’ identities, such as through multi-factor authentication, which will counter unauthorized transactions.
You should also provide your customers with clear and transparent payment instructions, including details about accepted payment methods, currency conversions, and any applicable fees. Displaying trust seals and security badges on your website will also instill confidence in your customers and encourage them to keep supporting your company.
3) Optimize the Checkout Experience to Reduce Cart Abandonment
Simplifying the checkout process is key to reducing cart abandonment rates. That means that you’ll want to streamline the design and minimize the steps for your checkout process.
You’ll also want to ensure that your online store is responsive and mobile-friendly so that you can accommodate customers who are managing payments using their smartphones and tablets.
Another effective way to avoid cart abandonment is to implement guest checkout options. Without needing to log in, non-members can check out seamlessly and be guaranteed a pleasant user experience. This, in turn, may increase your business’s chances of being promoted via word of mouth to other customers.
4) Leverage Data and Reporting for Informed Decision-Making
Payment gateways and ecommerce platforms typically offer comprehensive reporting tools to their clients. Learn how to utilize these insights to analyze payment data, identify trends, and make data-driven decisions for managing payments. This information can guide your pricing strategies, promotions, and product offerings, ultimately improving your business’s performance.
The insights deduced from your customers’ data can also shape your marketing strategies. In ad campaigns, highlight your most popular products or services and allocate your ad budget towards channels where most customers find you, such as the different social media platforms or Google search, which involves SEO services.
5) Offer Excellent Customer Support and Resolve Payment-Related Issues Promptly
Providing exceptional customer support is vital towards maintaining your customers’ satisfaction and loyalty to your brand. Knowing that, be prompt in addressing any payment-related issues or concerns that customers may have. This includes responding to queries, resolving payment disputes, and offering refunds when necessary.
Prioritizing customer service in your business is not only a short-term solution that brings customer satisfaction. It’s also a long-term strategy to turn new customers into returning ones. Don’t be remiss in fine-tuning both your payment and customer support processes so that your customers stay loyal to you.
Final words
As more entrepreneurs venture into the realm of online business, there’s an even greater need to implement best practices for managing payments and making sure payment processes are responsive to customers’ needs.
By following the suggestions listed above, you can establish a strong foundation for managing a more complex payment system than the one you already have, all while keeping a large population of customers happy and satisfied with their experience of your business.
With the support of platforms like Shopify and fintech companies like Maya Business, find the tools and resources to thrive and grow in the competitive e-commerce industry. This is what will allow you to expand your business reach and keep your brand relevant in the years to come.
