New Payment Types Accelerate eCommerce Revenue

Tuesday 15 June 2004 14:43 CET | News

A new study shows even the top North American merchants may have untapped potential in their eCommerce practices.

According to the data, released by CyberSource Corporation, merchants can convert as many as 20% more customers by offering them more payment types to choose from. Those merchants offering one payment type, such as general purpose credit cards, for example, convert 60% of their shoppers. Those offering four types, e.g., credit cards, gift certificates, eChecks, PayPal, etc., convert 72% of their shoppers -- a 20% increase. (Shoppers are defined as online customers who have started the checkout process). Currently, 18% of North American online merchants offer one payment type, another 35% offer two. Only 20% offer four or more. Merchants taking action Merchants clearly grasp the changing payment situation. According to the survey, 38% say they plan to investigate or offer a new payment method in the next 12 months. Methods they plan to implement first are: electronic checks (31%), PayPal or other non-card payments (26%), private label cards (19%), gift certificates (14%), instant credit (13%), and recurring billing (7%). About the survey The survey, undertaken by CyberSource Corporation and conducted by Quality Research Associates, was derived from 147 telephone interviews with some of North Americas top eCommerce websites. In order to qualify for the survey, companies needed a minimum of $10 million in annual online revenues. Respondent companies online revenues account for an estimated 10% of 2003 business-to-consumer eCommerce in the United States.

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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce