Friction is a term that refers to any obstacle or hindrance in the path of progress. In the context of payments, friction might be something like long checkout forms, too many steps in an order process, or just not feeling confident about your purchase. Whatever it may be, reducing payment friction is one way to increase conversion rates and sales for your business! Below are 5 strategies you can implement today to reduce payment friction on your site:
1. Offer Multiple Payment Options
When it comes to payment options, the more the merrier! By offering customers a variety of payment methods, you make it easier for them to complete their purchase. This could include popular methods like PayPal or Stripe to seamlessly accept most types of credit cards (Visa, Mastercard, American Express), as well as alternative payments like Apple Pay or Bitcoin. Eftpos is also commonly used in Australia, and is a great option for businesses looking to reduce friction – to read more about this popular payment method and how to choose the right one for your business, click here.
If you’re not sure which payment methods to offer, do some research on what’s most popular in your region or industry. Remember that not everyone will have access to all payment methods, so be sure to cater to as many people as possible.
Tip: If you’re using a third-party payment gateway, make sure they offer multiple currencies and languages too
2. Add Rewards Programs
Another way to reduce payment friction is by adding a rewards program. This could be anything from a loyalty program that gives customers points for each purchase,access to a VIP club that offers exclusive perks and discounts, or even crypto reward points.
The key here is to make the rewards program easy to understand and use. If it’s too complicated or takes too long to redeem rewards, people will be less likely to participate. So keep it simple, and offer meaningful rewards that people will want!
Tip: Use an app like Fetch Rewards to quickly and easily add a rewards program to your site
3. Offer Free Shipping
Free shipping is a no-brainer when it comes to reducing payment friction. Not only does this increase conversion rates, but it has been shown that customers are willing to spend more on products with free shipments compared to those who have to pay for delivery. So if you haven’t already done so, start offering free or low cost shipping today! This will not only reduce your costs and improve margins, but also help decrease the number of abandoned carts due to high order totals.
Tip: Consider using an app like Shippo which offers real-time quotes from multiple carriers in one place
4. Use a One-Page Checkout
One of the best ways to reduce payment friction is by using a one-page checkout. This is exactly what it sounds like – all the steps required to complete a purchase are on one page, making it quick and easy for customers to check out.
Studies have shown that using a one-page checkout can increase conversion rates by up to 50%. So if you’re not already using this feature, it’s definitely worth considering!
5. Offer Payment Plans
Offering customers the option of a payment plan is another way to reduce friction. Typically, this would be used for expensive products where it might take people longer to afford them. This could include anything from financing options that let you pay off your purchase in installments, rent-to-own programs that require no money down and spread payments over time, or just receiving your order early with free shipping if you choose to finance it! There are many different types of payment plans out there so find one that works best for your business model.
Tip: If you’re not sure which type of plan will work best, try testing two different ones on each product page – track how they affect conversions before deciding on what’s right for your business.
These are just five of the many ways you can reduce payment friction on your site. By using any or all of these tips, you’ll make it easier for customers to complete their purchase and increase your conversion rates!