The role of ecommerce marketing is to make it as easy as possible for customers to make a purchase. Payment gateways play a similar role, allowing customers to complete their purchase quickly, safely, and easily. Although there are some exceptions (more on that later), having no payment gateway can end up ruining all of your hard work. In this guide, we take a look at payment gateways and how they affect your ecommerce marketing efforts.
Payment Gateways and Ecommerce Marketing
Before we start, what are payment gateways, exactly? These systems allow customers to pay by card or store wallet. Most online stores use systems that require a one-time pin set to mobile numbers.
According to a Statista report on preferred online retail payment methods 2020 in South Africa, credit cards remain the most commonly used payment method at 41%, with bank transfers and cash payments sitting at just 11%. For stores that do not offer payment gateways, EFTs are offered as an alternative to card payments. When customers pay by EFT, they will need to go through additional processes to make payment, which can be a huge barrier to purchase. Trust also rapidly decreases, with many customers showing concern over waiting for transfers to clear before orders are completed.
In the case of COD payments, trust is jeopardised even further – for etailers and customers alike. For stores, there is a risk of fraud and other issues. Couriers will often add additional costs to COD orders. Often, there is very little way to verify customer information, which increases the risk of problems. Other times, products can be sent back with no payment, resulting in profit losses.
There are a few cases that you can still get the benefit of building brand presence without worrying about any types of payments at all. Some of the larger stores that have multiple branches across the country use their store websites as a way to promote products, new launches, exclusive in-store deals, and other campaigns. These websites act as a way to incentivise customers to shop in-store. Some fuse online and offline, through click and mortar strategies such as ordering online to collect in-store.
Getting the Most From Ecommerce Marketing
Although payment gateways and credit card payments are not without some concern over scams, for the most part, they remain a safe way for customers to shop. The fewer barriers standing in the way of sales, the better. When you offer a seamless experience that enables customers to browse products, add items to the cart, checkout, and make payment without having to take multiple added steps, you greatly increase the chance of making sales.
This will always ensure that you get the best results from your ecommerce marketing strategies, focusing on how you can improve the customer journey at every point.