New Payment Methods
One of the biggest sources of friction between the consumer and electronic commerce is the available payment methods. This is the reason why every year millions of online shopping carts are abandoned, which has promoted companies to launch new and innovative payment methods in retail environments, such as Pay + Afternoon, which allows you to finance purchases in up to 12 installments and « no paperwork », or Ingenico, which offers secure transactions through its applications and payment processing devices.
This trend has not gone unnoticed by the e-commerce giant Jeff Bezos, who left Amazon Pay in 2007 in order to speed up online shopping. On the other hand, Trustly landed in Spain last year with the purpose of transferring safer transfers for consumers and profitable for merchants.
While Ingenico and Trustly show uneven growth, Amazon Pay and especially Pay + Afternoon, the abandonment rate of the shopping cart is 68% in retail environments, according to a study by Baymard, which shows the frictions derived from the limitation of payment methods.
Electronic payment methods (PayPal, Amazon Pay, etc.) should improve their acceptance among consumers, since only 39% of buyers use them, while the rest corresponds to credit and debit card issues, according to Statista. 37% of SME owners are considering introducing new mobile payment options in 2018, according to PCWorld. This demonstrates the growing interest of companies in the new payment methods.
The frictions in the checkout processes have been reduced with the introduction of electronic payment methods, due to their greater comfort and speed. The conversion rate, therefore, is optimized by the lower number of abandoned shopping carts and the greater speed of checkout. The security of online transactions has improved with the arrival of ePayments, since they eliminate the risks associated with cash, offering greater security measures than credit / debit cards.
Pay + Afternoon:
This company operates through Pagantis and offers express financing for online purchases, with the guarantee of being regulated by the Bank of Spain.
Launched in 2008, this Swedish company has positioned itself as the first online payment method that allows online banking transactions.
Founded in 2011, Stripe is a company that provides software that allows customers and merchants to receive payments over the Internet, safely and with fraud prevention.