Although many entrepreneurs believe that they only need one payment gateway, studies shows that consumers prefer having more than one option According to a recent Cardtronics Health of Cash study, 9 out of 10 people like being able to use a variety of payment methods when making an online purchase.
The JP Morgan Chase Report, titled The Intersection of Payment and Commerce in a Digital World, also revealed that 73% of online consumers decide whether they will make a purchase from a company based on the type of payments they accept. Based on this data, it only makes sense to use multiple gateways.
Here are several more reasons why your ecommerce store should have more than one payment gateway.
You Will Have Backup in Case Something Goes Wrong
Imagine you only have one payment gateway. What will you do if you experience technical issues? Do you have a backup plan? Multiple payment gateways can act as insurance in case one gateway isn’t performing well or is down for an extended period of time.
They can help you maintain additional records of your company’s payment data or e-commerce transactions. Other gateways can also process payments when there is an overflow or sudden surge in sales. This means you can rest easy during Christmas and Cyber Monday without worrying about your store being able to collect your customers’ payment information.
Customers Enjoy Having More Payment Options
Based on the Health of Cash study, customers enjoy having payment gateway options when it
comes to shopping online. For example, let’s say your target market prefers using PayPal because they don’t want to input their credit card information. When you add PayPal as an additional payment gateways it’s more likely to increase your sales.
You Can Sell Internationally with Multiple Payment Gateways
One of the best advantages of owning an online business over a brick and mortar store is that you can easily sell to anyone in the world. However, you will probably have to add additional payment gateways if you want to sell internationally. This is because different payment gateways may be more prevalent or acceptable in certain countries and regions.
It’s important that your payment gateway is capable of supporting currencies from different regions. It will be much easier for people from all around the world to buy your products and services when you have multiple gateways that can process foreign currencies.
Multiple Payment Gateways Provide More Flexibility
Do you know if your payment gateway can accept monthly billing? Can it grow with your business or integrate with your website platform? It’s unlikely that one single payment gateway meets all your needs.
Multiple payment gateways give you the flexibility to know that you can handle almost every situation you encounter. You can also use certain gateways according to your speciﬁc needs at the time.
You Can Test Which Payment Gateway Converts Better
Is PayPal more popular? Or do your customers prefer Stripe? A big part of being a business owner is continually running tests and ﬁguring out how to optimize everything. When you offer multiple payment gateways you can conduct experiments and see which one increases your company’s overall conversion rate the most.
Multiple Payment Gateways Provide More Analytical Data
Another reason you should consider using multiple payment gateways in your ecommerce store is that you can use it to collect more customer data. Certain payment gateways have different capabilities and can provide a range of analytical data.
For example, one payment gateway may allow you to segment customers based on their country, currency, payment method and other information. This additional data can help you make more informed business decisions and provide insight on how you can optimize every transaction.
With Orderwave, you can easily manage multiple payment gateways, as well as have the ability to schedule billing at a future date and implement free trials all while having access to detailed transaction reports.
Be sure to check out the long list of payment gateways that Orderwave supports.
See how these ideas and use the use of Orderwave will help you grow your e-commerce business and get ahead of the competition. Contact us to get a free demo and consultation.