Facebook Pay joins a long list of innovators in Internet payments, including Apple Pay, Google Pay, Samsung Pay, WeChat Pay, Alipay, PayPal, Amazon Pay, Venmo, Masterpass, Visa Checkout, and many more.
It’s time to demystify these”pays” and create a strategy to advance your ecommerce business.
The listing of electronic payment options can be simplified and divided into two classes –“platform dependent” or”site-integrated” — based upon the client experience.
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The first course can be described as”we’ll take your customers in exchange for exposing your company to a larger group of consumers.” In other words, your success as an ecommerce merchant relies upon the achievement of social networking or market platform — think Amazon Pay, Facebook Pay (available to users of Facebook, Instagram, and WhatsApp), and shoppable Snapchat ads. Your clients are on a platform that you don’t control.
Platform-dependent payments provide access to tens of thousands or even millions of possible clients. Unfortunately, that access comes at a steep price: customer experience.
Enjoying the advantages of, say, Facebook Purchase or Amazon Pay means that you give up significant if not complete control over:
- The customer-acquisition funnel.
- The path-to-purchase journey.
- The feel and appearance of your ecommerce operation and complete user-experience.
- The checkout and payment process.
- The post-payment upsell opportunity.
- A/B testing.
- The opportunity to collect and analyze client information.
Merchants who offer platform-dependent payments should first answer a few important questions. Are you ready to let Facebook and other platforms command the buying experience for your customers? Can you take the possibility of distractions during the purchase journey? (It’s a totally new level of cart abandonment.) Would access to thousands of new customers mitigate these risks?
The following category of”pays” — such as services like PayPal, Google Pay, Apple Pay, Visa Checkout, and Masterpass — are integrated directly into an ecommerce site, which retains control over the customer-shopping experience. The integrated provider handles only payment approval.
With site-integrated payments, merchants can create, test, and modify the path-to-purchase funnel. Merchants can decide when to present upsells and remarketing. And the probability of industrial and social distractions is much less.
Payment gateways will be the first site-integrated providers. Years before this”pays,” ecommerce businesses relied on traditional payment gateway integrations with providers like Authorize.Net and Stripe. Gateways enable merchants to accept online credit card payments in a user friendly, secure manner while the shopper remains on your site, inside of your conversion funnel.
More or less all ecommerce platforms (e.g., Shopify, Magento) have built-in payment approval, allowing merchants to concentrate on running their businesses as opposed to maintaining gateway integrations and complex payment authorization procedures.
Consumers are accustomed to paying in the traditional, site-integrated method. Thus merchants should keep on offering this option. It works, after all.
However, merchants should occasionally consult with their gateway provider for new features which might assist their business as more of the innovative payment technologies (i.e., the”pays”) become common. Most payment processors and ecommerce platforms give low-risk, low-effort approaches to start with the”pays” For instance, Amazon Pay and Alipay are characteristics of Shopify Payments.
When considering one or more of the present payment creations, merchants should ask:
- How do my clients want to cover?
- Does the new payment service include convenience, or confusion?
- Can I need to modify my existing checkout experience?
- Are customers ready for a new checkout experience?
- Is my company ready to train and support customers as they work through a new checkout flow?
- Is the most recent technology effortless to incorporate?
- What are the costs?
- Can I cover those costs with an increase in revenue generated by the new feature?
None of those”pays” are free. Generally, and perhaps cynically, companies that develop new payment processes aim to:
- Increase their presence and their grip on a market. Google Pay and Apple Pay receive a number of the transaction fees, which, as usual, is passed to the merchant.
- Gather massive amounts of data, which might generate revenue for different elements of their businesses. Facebook, Google, and Apple have mastered data collection — not necessarily for the benefit of consumers and merchants.
- Make it difficult for customers to leave. Consumers aren’t as likely to leave an iPhone if their credit card is stored on it.
Unfortunately, innovation in payments doesn’t translate to decrease processing fees for merchants. It’s up to each merchant to weigh the costs of executing at least one of those”pays” against the possibility of acquiring more clients.
1. ) Appropriate for your organization? Ascertain if platform-dependent payments fit your organization. Allowing your customers to use Facebook Pay, for example, means that they will be shopping on Facebook, Instagram, or WhatsApp. Is your company permitted to advertise on Facebook? Are your opponents there? Would access to a enormous potential base be worth the loss of control? Are the costs of running your organization on Facebook reasonable?
2. ) Strengthen and improve. As platform-dependent payments proliferate, try to strengthen different facets of your organization. Consider:
- Purchasing a customized experience for your site to be able to distinguish it from monoliths like facebook, Amazon, and Instagram. Show your clients why you are independent and unique.
- Emphasizing your mission, your value, and how you treat customers.
- Tightening your privacy protection and information protection. Major tech companies are forged for alleged privacy violations and safety breaches. Demonstrate how your business is better.
- Building your own”cover” solution by storing cards . Most payment processors and gateways give PCI-compliant, tokenized card-on-file services. Once implemented, you have the ability to present quick-buy buttons, repeat payments, and instant checkouts. Be creative. Brand it and promote it as your company’s”pay.”
3. Choose 1 platform. Start slowly. Begin with an easy business case in which you work out the benefits and the costs. Do not miss the fees in the outside platforms. It may be a small amount for a gigantic increase in sales.
Conversely, it may be a logistical headache. By means of example, how are you going to take new orders and handle fulfillment? Do you have enough time and resources to keep several sales channels? Measure everything. Collect as much information as possible to make rational business decisions.
4. ) Post-purchase opportunities. Use post-purchase upsell and advertising opportunities. Even if the sale is completed on an external platform, you will typically be responsible for order fulfillment. This is your Opportunity to promote your business, through:
- Order status email and text messages.
- Promotional materials and inserts.
- Free samples.
- Unique, value-added unboxing experiences.
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