Customers today want to be in control of their online shopping experiences, beginning with their first interaction with a website and extending through to checkout.
And savvy digital consumers are demanding more, particularly when it comes to how they pay. Behind this behaviour are new payment technologies that make it easier, faster and more secure to pay online. Who wouldn’t want that?
Merchants that deliver on these three features are well on their way to providing payment and checkout experiences that keep customers converting.
What Merchants Need to Know about the Checkout Experience
Times have changed for online merchants. Gone are the days when brands could expect loyalty based on their product alone.
Now, there are so many competitors in every product vertical that merchants can’t afford to deliver a status quo customer experience. To stand out, merchants have to fully understand the shopper’s journey. That includes how the payment process translates to a positive, or negative, checkout experience.
Creating a positive checkout experience is driven by how quick and seamless the customer interaction is from start to finish. Merchants have the opportunity to engage their customers throughout their journey, guiding them to checkout. Once customers arrive, however, the checkout process can’t be a pain, or they’ll abandon ship.
Research has shown that 28% of US customers have abandoned carts due to a lengthy or complicated checkout process. Motivated buyers quickly evaporate into lost sales when their checkout experience is sub-par. With better payment technology and innovative payment options, merchants can expect more conversions while waving bye-bye to cart abandonment.
How Payment Options Affect the Checkout Experience
Consumers today are aware of their payment options, and digital checkout options are in. It’s time for merchants to think outside the box and offer alternative payment choices, like innovative financing solutions that allow customers to pay for items over time.
How much can instant financing affect customer conversion? According to our data, a lot.
- 75% of consumers are more likely to select an online merchant that offers instant financing over one that doesn’t*
- 47% of consumers report they would like to be presented with an instant financing option while shopping online*
And here’s the big one. There is a strong correlation between instant financing and average order value (AOV):
- 40% of consumers would spend more money on a purchase if they had the option to finance at checkout*
These stats confirm that consumers are motivated by choice, and instant financing takes center stage. Why pay up front, especially on high-priced items, if you can pay in small installments over time?
Showing customers alternative payment methods during checkout also gives them ideas about how they can afford an item. With instant financing, that purchase becomes within reach. No need to break the bank.
When customers feel confident, they are more likely to convert. With more payment options at checkout, merchants give shoppers purchasing power, and that’s the kind of checkout experience everyone is looking for.
How Payment Technology Can Drive a Better Checkout Experience
Checkout experiences are only as good as the payment technology they’re based on. Offering more payment options on a clunky, outdated payment system will do nothing more than frustrate merchants, and their shoppers.
A recent overhaul of digital payments technology has created a new world of payment processing capabilities for e-commerce merchants. In the realm of checkouts, payment gateway providers give merchants the ability to offer numerous payment options that are guaranteed to work, within their existing platform.
As a result, we’ve seen merchants experience increased conversion, average order value and customer loyalty, while also making their lives easier.
Technology advancements have paved the way for the growth of mobile, spurring more online shopping. More sophisticated payment processing and gateway technology allow for faster, better and cheaper integration of new mobile payment technologies that seamlessly translate across multiple channels. Consumers now have cross-channel shopping experiences from desktop to mobile devices.
As payment technology evolves, so too do consumer expectations about the checkout experience. Customers have made clear the connection between their shopping experience and the desire to complete a purchase. The right technology lets you deliver those exceptional experiences and tailor to their buying needs.
Online competition is stiff. But merchants that offer more payment options, equipped with new payment technology, can stay ahead of the pack by giving consumers the checkout experience they’ve come to expect.
Your customers want payment choice, your checkout experience can give it to them. We call that smoooth.
To get the scoop on Klarna’s smoooth payment options, connect with our team!
*Consumer Attitudes Towards Instant Financing: Researchscape & Klarna