SMBs today look for exceptional customer experiences that sets apart from competitors. It helps businesses like yours to show customers that you care about their opinions, improves your chances of getting repeat purchases, and helps grow your revenue and overall business.
One area where customer experience makes a big difference is the payment gateway.
According to research, $18 billion is lost globally in annual sales due to cart abandonment, and the rate is only increasing yearly, reaching 70.19% in 2023. Optimizing the customer’s payment experience can significantly reduce this number.
Plus, for small and medium businesses (SMBs), payment optimization isn’t just about completing transactions—it’s about creating trust, reducing friction, and ensuring customers leave with a positive impression.
Here is a look at some industry best practices that can help you optimize your payment experiences and delight your customers.
1. Streamline the checkout process
The first step to improving the customer payment experience is to minimize the number of steps required to complete the transaction. If the process is too complicated or time-consuming, cart abandonment is more likely, which will affect overall revenue.
To simplify the checkout process:
- Use One-Click Checkout by allowing returning customers to save their payment preferences, shipping details, and other details for a faster checkout.
- Allow Guest Checkout features to avoid forcing the customer to create an account for the first purchase.
- Use minimalist design and improve user experience with clear Call-To-Action buttons like “Pay Now” or “Proceed to Checkout” to help avoid confusion and improve completion rates.
- Avoid adding any unnecessary pop-ups or distractions at this stage, as it may deter the user from completing the transaction process.
By minimizing steps and creating a seamless checkout process, SMBs can ensure customers move from browsing to payment with minimal hassle, ultimately boosting conversions.
2. Offer multiple payment options
The consumer of today has specific payment preferences that you should allow to be used. A traditional customer will prefer standard payment options like cash on delivery, net banking, or credit/debit card payment.
In contrast, a tech-savvy customer will look for alternative methods, such as a digital wallet, UPI payment options, or Buy Now Pay Later (BNPL) options.
Additionally, suppose you are an SMB catering to a global audience. In that case, you will need to offer multi-currency payment options with the ability to use global gateways like PayPal, Stripe, or international credit card processing.
Supporting these multiple payment options allows you to meet customer expectations and improve conversion rates. To help support these multiple payment options, head over to Plural by Pine Labs. The Plural Payment Gateway allows you to provide over 25+ payment options, including no/low-cost EMI, brand EMI, debit card EMI, credit card EMI, cardless EMI, BNPL, and many other options.
3. Ensure payment security
Trust is a deciding factor when customers make payments. If they feel that the payment page is not trustworthy, it can not only result in cart abandonment but also damage your business’s reputation.
Thus, it is important to provide secure payment options such as:
- PCI-compliant payment gateways that ensure that the data is encrypted and safeguarded against any breaches. These don’t just help you adhere to regular requirements but also provide an added layer of credibility to win the trust of your customers.
- Comply with and provide visible badging for security certifications like SSL certificates, secure payment icons, and logos of trusted payment processors to reassure customers that their sensitive information is protected.
- Mention explicitly on your page about your refund and return policies. Clear and well-communicated refund and return policies go a long way in reassuring customers, as they can be assured that they’ll get their money back in case of any issue.
A secure and transparent payment process not only ensures buyers’ peace of mind but also encourages them to return, helping SMBs foster long-term relationships.
4. Optimize for speed: the role of fast payment processing
Another essential factor for improving the customer payment experience is the speed of payments. Customers today always prefer lightning-fast payments, and even a minor lag in the payment can lead to drop-off or cart abandonment.
According to a report, even a one-second delay in page load time can reduce conversion by 7%. So, to speed up your payment process, you can:
- Use simple design and elements on the payments page to ensure that it loads faster and minimizes the chances of a lag or slow load time. This will also help make the process easier in case the customer doesn’t have fast internet service.
- Provide instant updates once the payment is confirmed so that the customer is reassured that the transaction is successful. Speedy responses reduce customers’ anxiety and help build a positive impression about your SMB.
Speedy payment processes benefit customers and SMBs. While customers enjoy a hassle-free experience, businesses benefit from reduced cart abandonment rates and increased loyalty.
5. Offer transparent pricing and minimal hidden fees
A primary reason for customers dropping off at the last minute and leading to cart abandonment is the lack of transparency about added charges and fees.
Studies show that about 55% of customers abandon their carts due to unexpected charges like convenience fees, shipping fees, or hidden fees not mentioned while selecting the product. To prevent such dropouts, you need to build trust and provide clear communication about:
- Your pricing: Ensure all costs, including taxes, shipping, and additional fees, are displayed before the customer reaches the payment page. For instance, showing a detailed cost breakdown during checkout eliminates confusion and builds confidence in the purchase process.
- Hidden charges: To reduce the likelihood of cart abandonment, try to remove any hidden charges or display them in front.
- International pricing: For SMBs serving international markets, displaying prices in the local currency is a must. Inclusive pricing not only improves clarity but also creates a more personalized experience for global customers, making them more likely to complete their purchases. When customers know exactly what they’re paying for, they are more likely to trust and recommend your SMB to others.
Wrapping up
Optimizing the customer payment experience is no longer a luxury but a necessity for SMBs looking to thrive in today’s competitive landscape. By allowing your customers to choose the mode of payment they are comfortable with and even giving options to pay using EMI or the Buy Now Pay Later (BNPL) model, you can improve the chances of winning the sale.
However, offering multiple payment options along with flexible payment features is not easy for most SMBs. Fortunately, tools like Plural by Pine Labs can make all the difference.
Plural’s best-in-class Payment Gateway allows you to provide a secure and robust payment option to your customers, supporting multiple payment methods. This ensures a smooth and satisfying experience for your customers at every touchpoint, no matter the size or scale of your business.
Ready to optimize your payment experience and take your business to the next level? Speak to our experts to know more about Plural Payment Gateway now!
