Savvy merchants are transforming their businesses with fintech innovations as shoppers are shying away from traditional ways of paying in favor of alternative payment methods. This technology is also helping smaller retailers capture more business and stand out from the retail giants like Amazon.
As more businesses start to understand how new fintech options could affect their bottom line, they are also jumping on board, searching for the right options to provide their customers. They are looking at a range of solutions that improve the shopping and payment experience, including giving shoppers innovative ways to pay. Shoppers are also jumping on board. They are beginning to expect these alternative payment methods to be available wherever they shop. To clarify, we are referring to payment options that do not require paying the lump sum upfront in cash or with a credit card.
If you haven’t already considered providing an alternative payment, keep in mind that many of your competitors are, and you might want to do so before you get left behind.
What does alternative payment methods have to do with improving retailers’ online strategy?
More and more shoppers are turning to the internet to make their purchases from the convenience of their home. They no longer need to spend time and money driving to different stores to compare prices. This means retailers are having to focus more on their online strategies. Their online presence has to be attractive and stand out from their competitors, their “story” and overall branding needs to connect with their audience, and their website needs to be trustworthy and easy to navigate.
Offering alternative payment methods is like putting the finishing touches of paint on a masterpiece. By providing these payment options, a merchant is removing obstacles for consumers to pay, making it easier to close more sales. It provides a safe way for shoppers to make purchases easily and for merchants to secure the full payment. This is what consumers want and they love not having to pay for their items all at once. It allows them to tap into their own purchasing power, giving them the ability to buy higher ticket items they would otherwise not be able to afford or wish to pay for in one bulk sum.
If you’re a retailer, the real question today is why wouldn’t you provide alternative payment methods on your site? At the most it’s a real competitive advantage and at the least it’s an expected service that is proven to close sales.
What to look for in an alternative payment option
The key is finding the right alternative payment method to offer your consumers.
From the consumer’s perspective, it has to be a simple and secure option that preferably makes their lives easier, not harder. For example, filling in an application or running a credit check is harder. The fewer steps they are required to take, the better. Shoppers also want to understand exactly how their chosen payment option works without having to read all the “fine print” and they definitely don’t want to run into any surprises later on. If there are benefits to their payment method, in addition to not having to pay in full immediately, then that is a bonus that will leave you with very happy customers.
From the merchant’s perspective, it has to secure the receipt of payment. If a consumer opts to use a plan to pay over time, the retailer wants to know that they will receive all their money. Also, technically speaking, the integration with the merchant’s website and ecommerce platform should be seamless. However, ultimately, it needs to provide value. They want to know how this technology will improve their business: close more sales, grow their bottom line, and secure repeat happy customers.
Splitit: The Ideal Alternative Payment Method
Splitit is the only credit card based installment payment solution. This means it can offer benefits from both the shopper and the merchant perspective that are available nowhere else.
Here’s a breakdown of benefits:
The benefits for a shopper:
- No applications or credit checks
- Instant approval
- Always 0% interest, never any late fees
- Collect usual benefits (points, miles, cash-back)
The benefits for a merchant:
- Increase sales, higher average order values, decrease cart abandonment rates
- Access to 1 billion shoppers worldwide
- Higher approval rate
- Omni-channel, working across all platforms online, in-store and on mobile
- Quickest checkout