It’s important for your webshop’s conversion rate to choose the right payment methods. You can do this by focusing on your customers' preferences.
It’s crucial to optimize your webshop’s conversion rate by carefully considering and selecting the most suitable payment methods. A high conversion rate means that a larger portion of the visitors to your site end up making a purchase. In this process, the choice of payment methods plays a key role.
To make the best choice, it’s essential to understand your customers' preferences and needs. This involves researching which payment solutions they find most appealing and secure to use. By offering the payment methods your customers prefer, you can significantly improve their shopping experience, which not only boosts your conversion rate but also helps build loyalty to your webshop.
At pensopay, we will usually ask you three questions to help determine the right payment methods for you:
- Who are your customers?
- Where are your customers located?
- What products or services do you offer?
1. Who Are Your Customers?
Analyzing your target audience can be a lot of work, but it’s essential to have a clear understanding before launching your webshop. With in-depth knowledge of your audience, you can better plan and streamline your sales and marketing activities.
It’s essential to understand your customers' demographic information, their purchasing behavior, and the sector they belong to.
There are three sectors:
- The private sector (B2C)
- The business sector (B2B)
- The public sector (B2G)
If you sell in the private sector (B2C)
B2C, or Business to Consumer, is the largest sector. The payment methods you need can vary greatly depending on your sector. At pensopay, we assist clients across all sectors, so we’ll help you find the right solution.
For B2C businesses, we would recommend our standard card payment methods, along with MobilePay, and possibly Anyday if you want to offer popular installment options.
If you are a business selling to other businesses (B2B)
In the business sector, where you sell as a supplier or otherwise, purchases are often more complex, and prices and quantities are typically higher than in B2C. This is not where you would usually make a purchase with your mobile phone or a MobilePay swipe. Business purchases are often made using a corporate card.
Therefore, we would generally recommend card payments, Apple Pay, or Google Pay.
If you sell to the public sector (B2G)
Sales to the public sector can vary greatly depending on the industry you’re selling to. It can be beneficial to have something simple like MobilePay or the more common card payment methods. Alternatively, you might need a completely different solution. As always, we’ll guide you to ensure you get the right solution.
2. Where Are Your Customers Located?
As part of a target audience analysis, it’s also important to know where your customers are located. This includes their online presence – which platforms do your target audiences use the most?
In addition, it's important to know where they are located geographically.
Popular payment methods in Denmark
If you're starting by targeting the Danish market, as most Danish entrepreneurs do, you should offer the most popular payment method in Denmark: VISA card payments. Here at pensopay, we include VISA, Mastercard, VISA/Dankort, Electron, and Maestro as standard in your agreement. Additionally, Apple Pay is also included in our agreement and can be easily added to your gateway.
MobilePay is also hard to ignore, as it is the second most popular payment method in Denmark. Many customers prefer MobilePay because it's easy to use and they don’t have to search for a payment card. That’s why it’s also beneficial to add it to your webshop.
Preferred payment solutions in other countries
If your customers are in other countries, such as in Sweden, it’s a good idea to offer popular Swedish payment methods like Klarna and Swish. Vipps, Norway's equivalent of MobilePay, is another great option to offer if you're selling products or services to the Norwegian market.
3. What Products or Services Do You Offer?
Regardless of what you’re selling, it's important to understand your product categories and their price range. This has a major impact on which payment methods will suit your business best.
High-End or Fast Fashion
If you sell high-end or complex products with a higher price range, such as large furniture or expensive courses, offering your customers an installment payment option like Anyday can be beneficial for your business. This allows your customers to enjoy your products while paying for them over time, without extra costs or fees.
Product categories like food or fast fashion are more impulse purchases and don’t require much consideration. In this case, a payment option like regular card payments or MobilePay would clearly be the easiest and most straightforward for the consumer. This way, you avoid losing sales due to a complicated and time-consuming payment process.
Consider the Purchasing Process of Your Customers
Make it simple and straightforward for your customers.
It's not always advantageous to provide every payment method available on your webshop. Too many options can create unnecessary confusion, so it's best to choose the ones that fit your business needs.
Once You Have Selected Your Payment Methods
Nothing is more frustrating than discovering the product you want, only to face a complicated checkout. That’s why many customers check your website in advance to see which payment methods you accept.
That’s why it’s a great idea to clearly display the payment methods you offer on your webshop.
Don’t hesitate to contact us. We’d be happy to review the payment methods with you.
Team pensopay.
