The way we pay for things has changed dramatically over the last decade. Many of us fear the move to a cashless society, with the rise of contactless payments and card-only coffee shops, but actually, the change is going further than that. More transactions are taking place online than ever. Businesses have to keep pace and make paying for goods and services as painless as possible. If they don’t, they risk losing customers. The link between frictionless payments and the success of a business is well-researched and hard to argue with.
A seamless payment system can be the difference between securing a sale and losing a customer at the final hurdle. It also plays a key role in retaining customers, encouraging them to buy again, and positive reviews too. It’s no longer a ‘nice-to-have’, it’s essential.
How Payment Efficiency Impacts Conversion
According to the Baymard Institute, nearly 70% of online shopping carts are abandoned. Indeed, some of this is down to what’s known as ‘browsing behavior’, but a good portion of it is often down to checkout issues. One study showed that around 18% of users left because the process was too long or complicated, and a further 9% left because of a lack of payment options.
For businesses, that’s a substantial number of potential customers lost. And for such a frustrating reason! Not because the product wasn’t excellent, or the website wasn’t delivering, but because the payment system didn’t meet expectations. It’s not the most exciting part of the process, but the lack of a simple and quick checkout process is what’s stopping some businesses from succeeding.
Good Payment Systems Encourage Loyalty
So, we can safely say that when the checkout experience is straightforward (and the product is excellent!), customers are more likely to return. Research from Shopify shows that returning customers convert at much higher rates than first-time buyers. For some products, up to nine times higher.
Another boost that all businesses are looking for is that hallowed word of mouth recommendation. Well, positive payment experiences can also contribute to this. Those who experience an easy checkout are more inclined to leave a positive review or recommend the business to others. Particularly in the case of online shopping, positive online reviews can make or break a purchase decision.
What Modern Payment Systems Look Like
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Variety is the spice of life, and, believe it or not, the same is true in terms of payments. Consumers expect a variety of payment options. Debit cards aren’t cutting it anymore, while digital wallets, mobile banking options, and crypto are becoming expectations at the point of checkout. Buy now, pay later (BNPL) services are also becoming more common. All this is to say that if you’re a business owner offering just a debit card service, you’re talking yourself out of long-term custom.
A 2024 Deloitte survey found that nearly 75% of retailers plan to accept crypto or stablecoin payments within the next two years. This growing interest is well supported by advances in crypto payment technology. With a modern crypto payment gateway, businesses can offer the same – or in some cases, better – efficiency as traditional systems. Payments can be settled quickly, sometimes instantly, and converted to fiat currencies automatically if needed. With solutions like this now being easily accessible online, more businesses than ever can integrate increasingly popular ways to pay to help secure their future.
A Strategic Opportunity
For businesses looking to grow with longevity in mind, the checkout experience is essential to invest in. With around 85% of retail transactions now taking place online, payment systems have a direct impact on customer satisfaction and long-term loyalty.
By investing in seamless payment solutions – whether that includes traditional options or newer methods like cryptocurrency – businesses can reduce friction, improve conversion rates, and encourage positive engagement. It’s a small part of the customer journey, but one with an outsized influence on results.