eWallets Explained: Why You Should Consider the Payment Option for Your Online Store
If you’re an eCommerce manager, you’re well aware of the need to continuously watch the latest trends and technologies that could impact how you sell online. As shoppers continue to expect better user experiences and easier shopping methods, alternative payments offer enticing benefits for online retailers.
According to World Pay, alternative payments account for 22% of global eCommerce transactions. 40% of shoppers feel more comfortable purchasing from a retailer with multiple payment options, while 83% of shoppers feel retailers should look at adding more payment options.
One of the most popular alternative payment methods is an eWallet. With an eWallet, consumers can store funds or link their credit card to a program such such as PayPal, MasterPass, or Apple Pay. It’s easy to understand why eWallets are so popular:
- Online security is a growing concern for consumers. Those that have a trusted relationship with an eWallet provider will have more confidence in their purchase and therefore more likely to complete their transaction.
- Consumers purchasing from a retailer for the first time may be reluctant to complete a customer profile with credit card information until they’ve established a relationship with that retailer.
- Mobile users want to avoid additional form fields, and stored information in eWallets can drastically shorten the checkout process, making it easier to buy.
Here are some design considerations when incorporating an eWallet into your eCommerce site:
- Clearly communicate the options early in the checkout process.
- Set expectations on process, especially if use of the eWallet will take the shopper off the site to complete the transaction.
- Don’t overwhelm the consumer with too many options; choose an eWallet provider that has market share with your target customer.
- Know what works in your market. Countries vary widely on their preferred payment provider.
There are various eWallet options that you should consider for your site:
- Paypal and AmazonPay are top choices for many retailers and consumers alike. PayPal has 192 million active registered accounts and is available in more than 202 countries and supports payments in more than 100 currencies.
- V.me and MasterPass are emerging solutions in the market by leading credit institutions (Visa and MasterCard respectively). MasterPass is expected to win significant share in non-PayPal dominated markets, including China.
- Since its US release in 2014, Apple Pay has seen some great traction. It previously only worked in physical stores or in native applications, but is now available online. Many retailers that we work with at LYONSCG – especially those that get a lot of traffic from iPhone or iPad devices – are considering incorporating Apple Pay into their early 2017 road maps, especially since Salesforce Commerce Cloud (formerly Demandware) has enabled it in their core package.
Anyone who has used an eWallet knows the joy of using an existing login, choosing an existing credit card, and being done with checkout often in less than a minute. eWallets can equate to a huge reduction in cart abandonment and often means customers trust purchasing from you, and will quickly login and buy rather than delaying their orders. By offering eWallet options on your site, not only will your customers be happy, but you’ll also be happy with higher conversion rates and increased sales.
Jennifer Conklin is a Senior Account Manager at LYONSCG, bringing more than fifteen years of experience to the eCommerce implementation, support and digital strategy teams. Her background is in user experience design and web development. Jennifer graduated from the University of Illinois at Urbana-Champaign and resides in Chicago, where she enjoys running, playing with her children, and cheering on her beloved Cubbies.