Do Payment Gateways Impact Checkout Conversion Rates

Irrespective of the industry your business is in, the checkout is often the make or break point. 

According to Baymard Institute, the average documented transaction abandonment rate is as high as 70-89% across industries. 

And one of the leading factors for abandonment is reported to be the payment gateway one offers. 

In this post, we look into how payment gateways impact your conversion rate and what you can do to improve it. 

How do payment gateways impact conversions 

Let’s take a quick look at why and how the payment gateway impacts how many consumers complete a transaction: 

1. Speed to checkout

A good payment gateway helps convert the consumer before they can change their mind about making the purchase. The lesser the time to think, the higher are conversion rates - enabling impulse and momentary interest in product/ service is key. 

A very long checkout process or technical glitches that slow down the same can create room for drop-offs of even the highest purchase intent buyers. 

Good payment gateways come with optimized checkout processes and a high uptime to ensure your business is always ready for transactions. 

2. Security and trust

One of the primary concerns of online shoppers is the security offered by payment gateways. And the concern is justified. 

Payment gateway breaches and fraud are common. 

A report by Stripe mentions that 71% of businesses have reported that they have been targeted by payment fraud at least once. 

An average payment gateway breach can cost USD 9.44 million - businesses don’t just need to secure themselves, but also ensure they give consumers a safe platform to make transactions. 

3. Global accessibility 

When selling globally, businesses need to adapt to consumer payment preferences rapidly. This is where the importance of a payment gateway that comes with currency support and multi-language capabilities becomes important. 

At the same time, it is also important for businesses to adapt to device preferences over which consumers engage with them, giving them a way to checkout faster without the back and forth between pages. 

Right from the currency, preferred payment modes, devices and more, a good payment gateway enables businesses to adapt to local preferences quickly. 

Best practices to follow to ensure higher conversions 

If your business has been experiencing lower conversion rates, here’s what you can do to improve the number: 

1. Streamline the checkout process

Since the checkout process is a crucial step toward conversion, it’s important to keep it simple and remove any friction that can lead to customer frustration. Here are a few steps to remember: 

• Keep the checkout process to a single page. Scrolling from page to page can distract a customer, causing a loss in sales. Further, it will also factor in if there are any internet issues. 
• Offer alternative payment methods so that your customers have one or two preferred payment methods included. This will also attract customers who don't have access to or don't prefer the traditional payment methods.
• Implement a one-click payment system that’s convenient and encourages on-the-go shopping. In this system, the sensitive data is secured with PCI and tokenized on the website.
• Filling out unnecessary details like birthdays and anniversaries is time-consuming and often turns off buyers who are in a hurry. Instead, gather only the necessary data that are compulsory to complete the payment.
• One of the biggest inconveniences for buyers is when they have to sign up and provide login details before they can checkout. Look for a payment gateway that offers QR code payment or displays the bank account details where you can asynchronously process the payment without having to log in. 

2. Offer diverse payment modes 

Choose payment gateways that allow users to choose from diverse payment modes. 

For example, with PayBy, you can enable cashless transactions and online payments via various international and domestic credit cards, debit cards, and over 1.5 billion wallets.

It easily integrates with your existing website, so you can host the payment page and customize it according to your needs. 

And did we say that payment pages powered by PayBy are optimized for mobile phones, too?

3. Ensure speed and reliability

One of the biggest turnoffs for consumers is a slow and unreliable transaction process. Irrespective of the products/ services in the equation, this can result in the consumer losing trust in your business. 

A good payment gateway enables you to offer speed and reliability to your consumers. They are also licensed to enable transactions by legal authorities, giving you and the consumer, further peace of mind. 

For instance, Payby is licensed by The Central Bank of the UAE. It has been given the highest levels of financial service approvals to conduct Stored Value Facility (SVF) and Retail Payment Services (RPS) operations. 

4. Ensure mobile responsiveness 

Data says that at least 79% of mobile users have made a purchase at least once using their mobile phones. 

So, ensure your payment gateway has mobile responsiveness for consumers who prefer to shop using their handheld devices. 

A good payment gateway offers an optimized mobile pay page along with secure mobile payment modes. 

5. A/B testing and analytics

Continuously A/B test different elements, designs, and functionalities of payment gateways to determine the best configuration that gives you maximum conversion. 

You can A/B test the payment gateway among a subset of customers to understand the preference for local payment methods. 

Track and analyze the data to understand how it’s impacting conversion and the average order value. 

Are you ready to improve your conversion rates?

While there are many options in the market that can help you set up a payment gateway, Payby is one of the leading solutions in the UAE and is trusted by leading brands across industries. 

PayBy’s solution caters to a vast array of industries, including fitness and wellness, insurance, travel and tourism, social products and services, restaurants and cafes, hospitals and healthcare, information technology and services, gaming betting and casinos, and more - alongwith the ability to scale with the size of your business.  

Its easy integration feature works seamlessly with your existing technology – be it your website or app. 

Payby comes with several other powerful features that go beyond improving your conversion rates, and boosting the experience you deliver to consumers. This includes the ability to generate digital receipts, invoices, payment links and more. 

Want to know more about how Payby payment gateways can improve your conversion rate? 

Get started with Payby today.