Top 5 Changes in E-Commerce Payment Methods In 2021

Want to know the top reason for cart abandonment that is hurting your revenue? It is the unavailability of multiple ecommerce payment gateways and methods. The top demand by a customer today is frictionless experience. And one way to offer frictionless shopping is by giving flexible payment choices like mobile payments, one-click payments, subscriptions-based payments, contactless card payments, digital wallets, and other invisible payment methods.

Which payment gateways or channels should you use on your ecommerce website?

To question, here are some actionable statistics to guide your payment strategy-

• In 2019, the transactions done through digital wallets or mobile wallets accounted for 41.8% of global ecommerce sales. In 2023, the share is predicted to increase to 52.2 percent.

• After digital wallets, credit cards are the most used payment method with a 24.2% market share in 2019.

Did you realize how important it is to give multiple payment solutions? Want to learn more about various payment methods? 

5 ecommerce payment methods changes that can bring extraordinary results

1. Pay-later payment methods

Pay later is an online payment method that enables users to pay for goods purchased online via offline. It is best for new customers who are hesitant to use credit cards online. 

Flipkart is a prime example to understand this method. They offer Pay Later where customers can choose the desired products, add to cart, place an order, and can receive the delivery without any card requirement.

They can pay the amount in EMI installments within a selected period, let’s say 3 or 6 months based on the amount. 

How can a Pay-later method benefit your business?

• Buyers will spend more money

• Buyers will checkout instantly and purchase faster. 

• Buyers get flexible choices. Marketing pioneer, Neil Patel finds that 56% of customers demand a mix of payment options during checkouts.

• Offer a touch-free solution in-store and online

• Decrease your overhead and admin expenses.

There are many payment gateways in StoreHippo software that offer Pay-later options. Such as Razorpay, Stripe, PayU, etc. You can activate these gateways at just a click and offer frictionless checkouts to customers. 

2. Subscription-based payment methods

This method is best to retain loyal customers who regularly shop from your online store. B2B ecommerce businesses that are wholesalers, suppliers, etc are can use this method to process recurring payments from clients. 

How can a Subscription-based method benefit your business? 

You will get 4 benefits-

• Fixed payment: You know that every month your business account will be credited with a fixed amount.

• Long-term relationship with Customers: As customers are linked to your business for the long-term, you have opportunities to pamper them with your customer service. 

• Helps in upselling & cross-selling: When customers are on a subscription-based model, you can offer relevant add-on services/products.

• Maximum Profits: You can even entice your customers by offering them discounts, on a subscription amount for recommending the services to their friends/business partners. 

To reward them, you can provide subscription-based payment methods like Stripe Billing, Razorpay subscriptions, etc; which are pre-integrated in the StoreHippo ecommerce site builder. 

You can activate them in just a few minutes and can collect national and international payments across the globe. 

3. Marketplace Payments methods

Do you own a marketplace? Then you definitely need more than 10 payment solutions to cater to different audiences. 

How It should be able to process payments safely, securely, and reliably, with no glitches.   

In StoreHippo, you can enable marketplace payment options to send and receive payments from various countries, by connecting our budget-friendly payment partners. Some recognized partners are Stripe Connect, Paypal Adaptive, Razorpay Marketplace, and more.

What benefits will you achieve after integrating StoreHippo marketplace payment partners?

• Can convert 150+ currencies at an economical exchange rate

• Can process checkouts in 10+ payment options like COD, card, net banking, etc.

• One-click activation with no documentation

• Comply with PCI and other security standards

4. Native payment methods

Do you have domestic customers? Do you know what is the most preferred payment method they use? Well, according to StoreHippo, local customers are very accustomed to native payment platforms like digital wallets, UPI, etc. The ratio of people using digital mobile wallets is higher (is increasing) compared to cash/card users.  

How can a Native method benefit your business?

So to help domestic merchants/customers, StoreHippo offers a full spectrum of digital payment solutions. Some of them are PayTm, PayPal, Google pay, Mobikwick, etc. So, if the maximum of your customers is local, then digital wallets are key to quick mobile purchases. 

5. Omni-channel payment method

Do you want sales from both online and offline stores? Then, Omni-channel payment processing is the best consideration. It will help keep a track of payments that are made in a physical store but ordered online (like order online, pay offline). 

Simply, it integrates all payment processing, whether online or offline, in one place to get a better overview of data. You can view the payment history of a customer without even enquiring about them. Some classic example of omnichannel experience is-

• Buy online, pick up in-store

• Buy from store A, pick up from store B

• Return online orders via a physical store and get a refund online (either in their bank or wallet)

StoreHippo has partnered with Omni-channels payment solutions to give flexibility to merchants for a unified payment system. As well as enhance the customer experience, no matter where they shop.

Final Words 

From now onwards, you will never complain about low conversions. As you know how to fix the issue of high cart abandonment. So, what’s next?

How are you going to implement the changes? Do you have an ecommerce software that supports such changes?

StoreHippo gives you complete freedom to add multiple payment gateways at a click with zero efforts, zero time, and no additional fee. Can’t believe what you just read? Try StoreHippo to offer faster checkouts and conversions. Want to know how?

Get started with a 14 days free trial of StoreHippo’s eCommerce platform that offers 60+ pre-integrated payment gateways for faster checkouts.