As mobile payment continues to become more ubiquitous in our everyday lives, finding the right online mobile payment solutions for your e-commerce and virtual business are vital for any online merchant. In 2020, mobile payment users reached an estimated 1 billion people globally. By 2023, it is forecasted that the numbers will grow to reach 1.31 billion people worldwide.
Most people search for, watch content, or buy goods on their mobile phones these days. In fact, a recent report shows that between 2020-2025, the use of mobile payment applications is set to continue its great trajectory, with a compound annual growth rate of 26.93%, surpassing the manual use of credit card and cash as a payment method. There’s no way around it; mobile payment is the future, and your business will need to adapt to thrive. This article tells you how and why digital payment is important for your e-commerce business and how to choose the right mobile payment solutions that best suit your needs.
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What are mobile payments, and why are they essential for your e-commerce business?
Simply put, mobile payments refer to any form of payment made through a mobile device. Typically, the most common method of mobile payments requires customers to enter their credit or debit card information upon checkout. However, other methods, like mobile wallets, are also growing in popularity.
With mobile wallets, customers can conveniently store payment information from their credit or debit card via a third-party app or online service, which can be accessed through their mobile devices. Using mobile wallets, customers can store funds, make transactions, and even track their payment histories. This method is known to make mobile transactions quicker and easier, as customers can make transactions on the go without the need to re-enter payment details.
For online businesses, it is crucial to make sure that your e-commerce sites accommodate mobile payments. According to a recent study, over 60% of worldwide e-commerce traffic comes from mobile consumers. This is why a streamlined mobile payment solution will allow you to stay on top of your game and make it easier for your customers to make repeat transactions with your business.
How to choose the right mobile payment solutions that fit your needs
There is a multitude of different options when it comes to accepting payment online. However, bear in mind that choosing the right payment gateway should remain your utmost priority.
Essentially, a payment gateway is an online payment service that provides a bridge between your business and your customers which processes transactions securely and in real-time. It takes care of authorising your customers’ payment and making sure that the right transaction details are passed from the customers to your business.
If you’re ready to start integrating mobile payment in your business, these top four payment gateway options might be the best fit for your business:
Established in 1996, Authorize.Net is one of the oldest payment gateway providers around. It serves over 430,000 merchants globally and manages over one billion transactions every year. The platform allows users to accept payments from major credit and debit cards, most digital wallets, as well as e-checks and foreign payments from most countries.
Stripe’s native integrations with existing e-commerce platforms such as Shopify, Wix, Squarespace, WooCommerce, WordPress, BigCommerce, and more, makes them one of the most versatile payment gateway for e-commerce business. The platform also supports over 135 currencies and payment types, including various mobile payment options and wallets.
PayPal is the most commonly used digital wallet in the world. In 2020, the platform had 286 million active users, with an average of 36.9 transactions per year. It is known for its ease of use, reliability and security, and as a well-established brand, it has been proven to drive conversion up. Study shows that websites with PayPal checkout options convert at an 82% higher rate than sites without PayPal.
While initially built to simplify online payments for brick-and-mortar businesses, Square is also known for its seamless integration with major e-commerce platforms such as WooCommerce, Wix, WordPress, Magento, and many more. It accepts most mobile payment methods, and the platform is also priced competitively compared to other platforms in this list.
Finally, when choosing the best payment solutions for your online business, always make sure to keep these attributes in mind:
Make sure to know your customers’ preferences when it comes to online payment. Choosing a platform that your customers are familiar with can translate into a higher conversion rate.
Most payment gateway charges service fees to manage your transactions. Make sure you’re familiar with every fee structure and understand how it may affect your pricing or profitability in different ways.
Some payment solutions offer more seamless integration with your website or e-commerce platforms than others. It’s crucial to ensure that the service you choose works perfectly across different platforms, from web browsers to mobile apps.
Always choose payment solutions that are compliant with Payment Cards Industry standards. Concerns about debit or credit card security are among the most significant contributors to cart abandonment, so make sure that this tops your priority list.
As cash payment slowly becomes a thing of the past, mobile proximity payments will only continue to grow exponentially across different channels. If your business is ready to make the mobile switch, or interested to find out which online payment solutions are best for your virtual business, we are here to help.