As consumers expect smoother online shopping experiences, it is vital for merchants to optimise the payments checkout part of the shopping journey. But before implementing a new payment method, as a payment expert, there are a few things you need to take into account:
Understand your business.
Understand the market you operate in.
Understand your audience.
After identifying the above, it’s relevant to establish how you want to position your company in terms of payment methods. Once you do this, it’s good practice to carry out an in-depth analysis together with your PSPs, discuss with other merchants, and browse through industry reports that would provide you additional insight on achieving your goal.
Another important step is aligning internally with your tech and product teams to ensure the project can be delivered in time.
Finally, it might be worth asking the vendor for marketing funds to promote the payment method either at the launch (depending on its popularity) or once ensured it performs well at the checkout.
The main challenge in implementing new payment methods is finding reliable information to help you choose the ones that would actually be the best fit for your business.
In addition, sizing the implementation by the tech team sometimes is complex and difficult to fit within the roadmap. Hence, it is extremely important that the project gets properly sized in terms of the revenue it will generate once implemented. This will give you the key to setting the project as prio 1.
In terms of commercials and contracts, make sure that within the analysis, pricing has been also benchmarked and your company gets a competitive rate. In terms of the agreement, allow yourself some time too to ensure that your Legal also has sufficient time to review and provide the right assessment to it.
Providing the right payment methods for your company is a game changer, and it will translate into satisfied customers, who will perceive it as a good gesture to confirm that you comprehend their needs, which is what all companies aim to do.
For example, by implementing some of the most popular Asian e-wallets to our checkout page, we have experienced an increase in Asian customer presence. This has led to this payment method representing more than 1% of our global revenue.
This article was first published in Payment Methods Report 2022, the most updated overview of trends and developments in the payment methods space and the innovative technologies that these methods work upon, emerging consumers habits, and strategies on how to win at conversion and retention.
Pedro Bennasar, Head of Payments, Vestiaire Collective
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