Businesses Urged to Update Online Payment Options for Christmas
With Christmas fast approaching, online business marketing experts are urging small businesses who sell via their website to make sure they offer a full suite of payment options so they do not miss out on sales.
According to research from Google AU, 25% of total annual sales for online retailers take place during the Christmas period.
SponsoredLinX CEO, Ben Bradshaw, said online retailers must adapt to a changing payment landscape.
“We work with thousands of small businesses every day to help maximise their online marketing and bring customers to their site. But if the right payment options aren’t available the marketing is wasted,” Mr Bradshaw said.
“It is easier than ever before for a customer to buy from a traditional retailer using technologies such as PayPass and PayWave.
“This has implications for retailers who sell online, with customers now accustomed to greater payment convenience and choice.
“Online retailers need to review their payment options and ensure they are modern and attractive.”
It is recommended to provide as many payment options as possible to your customers so they can choose a method that suits. SponsoredLinX has identified five major online payment options which help maximise online marketing activity and sales conversion.
- Credit Card (Merchant Facility and Payment Gateway)
A merchant facility provides the means to accept credit and debit card payments and is generally provided by the banks. The banks usually charge an initial set-up fee for the facility, such as a fixed monthly access fee (usually about $20) and a Merchant service fee as a percentage of the transaction value. It is a competitive space so shop around the banks to get a good deal.
A payment gateway facilitates online payments by providing the software to securely pass credit card information from the customer to the merchant and process the transaction on behalf of the merchant.
- Electronic Funds Transfer (EFT)
This involves providing your bank account details to the customer. The customer can then log into their Internet banking and process a payment using a reference number provided by you as part of the check-out process. This payment method is not usually instantaneous and the merchant normally does not receive confirmation of payment until they check their bank account the following day.
- Direct Debit
This process involves a customer providing their bank account details and giving the merchant authority to deduct the amount owing from the customer’s bank account. This method is more common for recurring transactions at the same dollar value such as monthly subscriptions.
Before being able to provide this payment method, the merchant is required to set up a Direct Debit Facility with their bank which involves completing an application.
Once again this involves setting up a facility with your bank. When a customer selects the BPay option as part of the check-out process, they are provided with a Biller Code and Reference No. The customer will then need to login to their Internet banking to complete the payment.
The merchant will normally receive notification of the payment into their bank account on the following day. BPay is great for very large organisations handling a large flow of transactions.
PayPal is a third party payment processor. It does not require the merchant to set-up a merchant facility and so set-up is fast and less complicated. Set-up fees are less than credit card merchant facilities; however the recurring costs are generally more expensive. To pay by PayPal, the customer can complete payment using their PayPal account. Payment is instantaneous so the merchant is notified when a payment has been completed.
“Your payment system should be designed to be as user-friendly as possible and optimised for mobile devices,” Mr Bradshaw said.
Research from Google AU shows 65% of transactions begin on mobile devices and 67% of consumers online identify as impulse buyers.
“With the right payment options in place, your customers are going to be much more comfortable with departing with their cash.”
Further information is available at www.sponsoredlinx.com.au
Media Contact: Lauren O’Connor | SponsoredLinX | firstname.lastname@example.org | 1300 859 600 ext 464
SponsoredLinX provides online marketing services to clients, helping them to reach their full business potential. The company has expertise in Google Adwords, SEO, mobile marketing, social media management, app marketing, mobile websites and web development. SponsoredLinX has developed a business formula which is adaptable to the needs of any business.