Having the right payment method on your website can be the difference between a customer choosing to buy from you or your competitor.
According to Grand View Research, the global payment gateway market size is expected to grow by 22.3% by 2023 at a Compound Annual Growth Rate (CAGR). Therefore, having the right payment method on your website is important to your business's success. This article will explain how you can add payment methods to your website and what to consider before adding them.
What To Consider Before Adding a Payment Method?
There are a few things that you must consider first before you start adding a payment method to your website, and they are:
1. Customer Preferences
The most important thing to consider, in our opinion, is customer preference. The goal of a payment method is to allow customers to pay for a product or service. For example, the most popular payment methods for U.S. consumers are credit and debit cards, mobile wallets and bank transfers. Therefore, if you are an ecommerce business or even an online business in general, it would make sense to provide those payment methods on your website. Otherwise, your chances of making a sale or converting a customer will decrease dramatically.
2. The Fees
The fees are an important aspect to consider before adding a payment method. It's important because fees affect your profit margins, and they also affect your customers. Make sure to check and compare the fees of multiple methods before you decide to add the payment method to your website.
3. Security
Security is a major factor when it comes to payments. After all, we are dealing with customers' money and confidential information. Therefore, it is important to pay attention to the strengths and weaknesses of each method of payment and analyze the safety of those methods to protect your customers.
4. Ease of Use
Ease of use is often underrated when it comes to payment methods because it does not impact the customer or your sales directly. However, we would argue that ease of use of a payment method has a strong impact on sales just as much as other factors.
That is because ease of use removes any friction that stops your customers from completing their purchases. This will ultimately have an impact on your bottom line.
5. Reliability
Reliability is important because you will want to make sure that the payment methods you use on your website will work when you need them to. Although most payment methods today are extremely reliable, we should always keep reliability in consideration.
6. The Types of Payment Methods
Lastly, it is time to consider the types of payment methods that you want to add to your website. There are several different types and these include:
- Credit cards
- Debit Cards
- Bank transfers
- E-wallets
- Mobile payments
- PayPal
- Cash on Delivery (CoD)
- Cryptocurrency
Each of these methods has different advantages and disadvantages. We recommend looking into each method thoroughly before making a decision. If you are currently operating an ecommerce website, we have a dedicated article discussing the best payment methods and gateways for ecommerce businesses.
Adding a Payment Method To a Website
Now that we have covered what we have to consider before adding payment methods to your website, let's get into how to add them to your website. The process itself is not as difficult as you would imagine, so let's begin.
Step 1: Review the compatibility of your website host
The first step is to review the compatibility of each payment method with your website host. If you use a hosting provider such as Shopify or Squarespace, they usually provide comprehensive lists of payment methods and payment gateways that they are compatible with. Shopify provides over 100 payment gateway providers and Squarespace provides a detailed guide on how to connect a payment method on their platform.
Different website hosts will provide different guides and instructions, so we recommend you begin with this. If you decide to go with payment gateways, it is important to understand the different types:
Hosted Payment Gateway
This payment gateway takes your customer away from your website to another secure site to get the payment and redirect the user back to your website. Examples of hosted payment gateways include:
Non-Hosted Payment Gateway
This payment gateway has APIs and modules that can be integrated into your website. The payment transaction happens automatically on your website. Examples of non-hosted payment gateways include:
Step 2: Select your payment methods or gateways
After you find which payment method or gateway is compatible with your website host, it is time to choose the payment methods that you want to add to your website. We recommend choosing multiple different methods and providing customers with more options to choose from. Always remember to select the payment methods that are most popular for your customers.
Step 3: Compare the fees & service charges
While the integration and set-up fee is a standard charge, depending on which payment gateway you choose, you may have to pay a fee for additional security measures and every transaction, including refunds.
Once you understand the extra charges and services you are required to pay for, you can only make an informed decision regarding which payment gateway to choose.
Step 4: Add the payment method
With the help of your web host provider, you can integrate the payment gateway into your website. This integration option will be accessible through the admin page or control panel.
You may use any of the payment methods listed above. After you've added the payment methods, use a Test or Sandbox account to verify that the payment gateway is functioning properly and that transactions are proceeding without incident.
Step 5: Create a Merchant Account
A merchant account is a business bank account that enables businesses to accept and process electronic payments and card transactions. Merchant accounts require a business to link with a merchant-acquiring bank that facilitates all communications in an electronic payment transaction.
The merchant account acts like a ‘middleman’ to ensure transactions made are held securely through different payment processes used by the customers. Once you have set up the payment gateway, you must create a merchant account and link all payment methods with it.
Merchant accounts are regulated and supported by FDIC and come with fraud protection.
What Else Do You Need After You Have a Payment Method?
Payment methods are half the equation when it comes to accepting payments on your website. The next step is transferring your profits into a business account so you can start utilizing the funds to grow and finance your business.
Statrys offers a business account service that allows you to make or receive payments in all major currencies. Nowadays you don't need a bank to run your business because Statrys is the modern alternative to traditional banks. Open a business account in Hong Kong remotely with Statrys, and you'll get a versatile account in one of the world's most crucial financial hubs
As an expert in e-commerce and online payment systems, I've spent years delving into the intricacies of the industry, staying abreast of market trends, and implementing various payment methods for businesses. My experience is rooted in comprehensive research, hands-on involvement with payment gateways, and a deep understanding of customer preferences, security protocols, and technological advancements in the payment space.
Now, let's break down the key concepts mentioned in the article about adding payment methods to a website:
1. Global Payment Gateway Market Growth:
- The article cites data from Grand View Research, indicating a projected 22.3% growth in the global payment gateway market by 2023, measured by Compound Annual Growth Rate (CAGR). This growth highlights the increasing importance of having the right payment methods for online businesses.
2. Considerations Before Adding a Payment Method:
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Customer Preferences:
- Emphasizes the significance of aligning payment methods with customer preferences. In the U.S., popular methods include credit and debit cards, mobile wallets, and bank transfers.
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Fees:
- Highlights the impact of fees on profit margins and customer experience. Recommends comparing fees across different payment methods before integration.
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Security:
- Stresses the critical role of security in payment methods, emphasizing the need to protect customers' financial and confidential information.
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Ease of Use:
- Acknowledges the importance of a seamless user experience in payment methods, as ease of use directly influences sales by reducing friction in the purchasing process.
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Reliability:
- Underscores the importance of choosing reliable payment methods to ensure they work when needed, enhancing overall customer satisfaction.
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Types of Payment Methods:
- Lists various payment methods, including credit cards, debit cards, bank transfers, e-wallets, mobile payments, PayPal, cash on delivery (CoD), and cryptocurrency, each with its own advantages and disadvantages.
3. Adding Payment Methods to a Website:
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Step 1: Review Compatibility:
- Advises reviewing the compatibility of payment methods with the website host, mentioning examples like Shopify and Squarespace. Introduces hosted and non-hosted payment gateways.
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Step 2: Select Methods or Gateways:
- Encourages selecting multiple payment methods based on compatibility and customer popularity.
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Step 3: Compare Fees:
- Recommends comparing fees and service charges associated with each payment method.
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Step 4: Add the Payment Method:
- Instructs on integrating the selected payment gateway into the website using the hosting provider's admin page or control panel. Emphasizes testing the functionality with a Test or Sandbox account.
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Step 5: Create a Merchant Account:
- Introduces the concept of a merchant account, emphasizing its role in securely handling electronic payments and card transactions. Mentions the need to link all payment methods with the merchant account.
4. Post-Integration Steps:
- Business Account with Statrys:
- Highlights the need for a business account to manage and utilize the funds received. Recommends Statrys as a modern alternative to traditional banks, offering business accounts in major currencies.
This comprehensive guide provides businesses with the knowledge and steps necessary to navigate the complex process of adding payment methods to their websites, ensuring a seamless and secure online transaction experience for customers.
