Which payment methods belong in the online shop and what is really important to customers when paying? Current studies provide answers.
Customers want to pay how they want. According to current studies and surveys, the leading payment methods include PayPal, invoice, direct debit and credit card. For most customers, it is important to have an easy-to-use payment method, but preferences vary. Some love PayPal, others hate it. It is important for retailers to know and be able to serve customer preferences.
Corona crisis: Purchase on account is used more
The payment service provider Paysafe asked 8,000 consumers in Germany, Austria, Italy, Great Britain, the USA, Canada and Bulgaria about their payment habits and referred to the corona crisis.
- 32 percent of German customers bought on account last month, compared with 23 percent in the previous year.
- 39 percent of Austrian customers bought on account last month, compared to 24 percent in the previous year.
The customers surveyed named several payment methods, so they did not only buy on account. A possible interpretation of this change would be a growing proportion of older, conservative cohorts who previously bought less or no online shopping.
Multiple payment options are a must
In its survey, Paysafe found that German customers consider shops that offer several payment options to be particularly customer-friendly and modern. That sounds nice and soft, but in practice it has consequent consequences for sales and conversion rate.
The study “Success Factor Payment 2020” by Ibi Research shows that 72 percent of customers have a preferred payment method. If it is not offered, it is a big problem, as Forrester found in a study in March 2020 in collaboration with Bloomreach: 32 percent of customers were bothered by the fact that the preferred payment method was not available at checkout.
Paying should be easy and convenient
Customers are comfortable; If the payment data from a previous purchase is securely stored in a shop, 67 percent of German consumers are more likely to buy there again, instead of in a shop in which the payment data has to be stored again. According to the study by Ibi Research, the two leading reasons for choosing a payment method are 35 percent guaranteed buyer protection and 25 percent the ease of use of the payment method.
Customers consider the following payment methods to be simple:
- PayPal (81 percent)
- Invoice (62 percent)
- Direct debit (46 percent)
- Credit card (46 percent)
By the way, these four payment methods also lead to the question of the safest payment method.
These payment methods must be offered by online retailers
The authors of the study by Ibi Research summarize the most important findings about the payment preferences of online customers in a paragraph.
The conclusion is quickly drawn: every online retailer should use at least the four most popular payment methods. Paypal stands out most clearly. It is preferred by the majority (57 percent) of customers with a fixed preference for a payment method.
The 4 main payment methods
- Credit card
- Direct debit
The suffix that customers also prefer methods that are not used that often should lead to the conclusion that other payment methods definitely belong in a retailer’s payment mix. This prevents customers from dropping out. Because according to Ibi, 60 percent of customers categorically exclude certain payment methods. These customers need alternatives.