Payment processing

5 Benefits of Offering Alternative Payment Solutions

Online shopping has become an essential part of our world. More than three-quarters of Canada’s entire population bought goods and services using the internet in 2015, and more than $136 billion in sales happened online the year before that. With that in mind, neglecting online shoppers is like a hardware store refusing to stock auto parts because they believe cars are a passing phase. If you want your business to remain competitive in this internet reliant era, you need to take advantage of this online marketplace and invest in some sort of e-commerce solution.

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Among these options, alternative payment solutions are possibly the most innovative. Today, consumers want the power to choose how they spend their money. If they feel restricted by a merchant’s checkout procedures, they’ll buy from someone else. Alternate solutions don’t use

standard checkout procedures, so customers can pay according to their desires without sacrificing their financial safety. These methods will only get more prevalent, so you should learn more about them by considering the following benefits.

1. They Result in More Sales

Consumers love the pressure-free environment that online shopping offers. If they change their mind midway through the checkout process, they can simply navigate away from the site and end the sale. Unfortunately, the consumer’s gain is the businessperson’s loss in this instance. Companies must invest to ensure that their checkout processes are fast and intuitive so that imminent customers don’t back out of the process midway through.

 

If your online store is bleeding customers, alternative payment solutions can help staunch that flow. These methods don’t require buyers to fill in as many online forms, which simplifies the online shopping experience and allows users to make their purchases faster. This convenience ensures that you’ll retain more users through the checkout process and make more sales.

2. They Make Customers Feel More Secure

You may have read the previous point with a little bit of suspicion. After all, one of the main reasons traditional online checkouts take so long is because they involve rigorous security measures that keep consumers’ data safe. If alternative payment solutions do away with these steps, won’t users’ safety suffer?

 

Thankfully, processors must follow security standards that ensure their customers’ data remains protected. This extends to alternate solutions as well. Many processing companies also offer satisfaction guarantees that ensure consumers can recover the full value of their purchase if the transaction is faulty. This allows customers to finish their transactions quickly without compromising their identities or banking information.

3. Customers Don’t Have to Pay Immediately

Have you ever wanted to buy something immediately but had to wait until you received your next paycheque? Modern consumers may not have to face this hassle for much longer. Many alternate payment providers allow their shoppers to transfer the amount owed at a later date, usually within 14 days. By removing this financial barrier, companies make the shopping process even more convenient for their customers, which leads to further sales.

4. Chargebacks Are Reduced

Chargebacks are a big deal for any organization. Companies that accrue too many of them may find themselves unable to get affordable processing rates in the future. Alternate payments from bank accounts and direct debit accounts may help businesses cut down on these risks, making these methods ideal for anyone who needs to reduce their chargebacks.

5. Businesses Aren’t Responsible When Customers Refuse to Pay

If you’re worried about customers trying to exploit pay later programs, you don’t need to be. Payment processors accept a greater share of the risk in these transactions, so if a customer doesn’t meet their obligation, the company isn’t left on the hook for the money. This lowers the risks of alternate payment plans without detracting from their benefits to consumers.

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Matt Moore

As the President and Co-Founder of BNA Smart Payment Systems, Matt is responsible for the company’s strategic direction, daily operations, and growth. Entrepreneurial by nature, he brings a wealth of sales and marketing experience earned from over 36 years in business. He has developed, implemented, and directed international sales and marketing strategies, established strategic alliances with international companies, and demonstrated leadership in the electronic payments market. Prior to BNA, Matthew served at the senior levels of major EFT/POS companies, helping them increase sales and optimize customer service. Matt is also a father of three, a fitness enthusiast who does power lifting and CrossFit, and he enjoys weekends at the cottage.

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