The rising expectations of customers and the number of digital transactions are expected to increase the demand for digital payment services. The digital payment services market is forecasted to grow exponentially at an annual growth rate of 18%, with a projection to reach $86.76 billion by 2023.
Until a few years ago, traditional financial institutions used to steer the digital payments market — one of the linchpins of technological innovation. However, the birth of new digital payment solutions — Paypal, Amazon Pay, Stripe, and Apple Pay — centered towards customer’s expectations, threatened the very existence of traditional players.
To remain competitive and optimize customer satisfaction, businesses need to anticipate the future of consumer payments and satisfy their ever-increasing expectations for integrated and secure ways to pay for any product or service.
3 Reasons Why Businesses Choose a Digital Payment Service
Making the switch to an end-to-end digital payment solution, choosing a top payment gateway, and optimizing the payment strategy can not just make your customers happier, it also offers best-in-class fraud detection technology, along with many other benefits discussed in the blog.
1. Boosts the Buying Conversion Rate
Even with the dynamic and ever-evolving landscape of the eCommerce business, cart abandonment remains one of the significant issues that hurt the purchase conversion rate — the average eCommerce store loses over 75% of its sales due to cart abandonment.
Top reasons behind cart abandonment, as mentioned in the research by the Baymard Institute, are complicated checkout process and website requiring the visitor to create an account.
Cart abandonment is one of the issues that savvy marketers want to solve and thus seek a digital payment service that allows the customers to skip the lengthy form of account creation that requires personal and payment information. With an integrated digital payment system, customers checkout seamlessly, thereby getting rid of any friction that stops the customers from completing their purchase.
2. Supports Multichannel Payments
Consumer payment preferences vary since the advent of digital technologies. To complement physical stores, consumers have increasingly adopted multiple channels like eCommerce and mCommerce, which have grown drastically. They are set to be on the rise with the addition of voice commerce. Consumers, today, expect a seamless multichannel shopping experience that is intuitive, immediate, and inspired.
A survey conducted by Amazon Pay mentions that 39% of consumers are quite comfortable with starting their journey in one channel and ending it in another.
With customers expecting a frictionless and connected shopping experience across all the channels, it is becoming vital for businesses to integrate a digital payment service that corresponds to customers’ needs.
3. Enhanced Security
You might have experienced that carefree feeling of hopping out of the Uber cab without going through the hassle of digging for your credit card. This seamless and secure paying journey enhances customer experience, and as per the Accenture study, this trend is expected to rise and proliferate across the industry.
A survey by Amazon Pay reveals that consumers prefer choosing a digital payment service over traditional payment services because it protects them against fraud and alerts if their account encounters a security issue. Apart from consumer satisfaction, even retailers can benefit from digital payment solutions — Apple Pay uses a Secure Element (SE) to protect sensitive information, while Android Pay employs Host Card Emulation (HCE).
Thus by integrating your business with a robust digital payment system, you plug all the blind spots in payment systems that criminals look for.
With an expansion in the payments universe, customer experience is becoming the prime competitive differentiator. Customers are giving more preference to digital payment services like Apple Pay, Google Pay, Amazon Pay, or PayPal as they demand a little or no planning at checkout, along with being secure and widely accepted.
Thus, businesses that will listen carefully to the needs of customers will integrate their business platforms with digital payment services to improve their experience, thereby enhancing customer expectations and intensifying competition globally.