Credit and debit cards still dominate the eCommerce arena, yet alternative payment methods such as digital wallets and buy now, pay later (BNPL) plans have gained popularity as online payment options. Key reasons why include the ease and convenience they provide. As a result, most eCommerce merchants prioritize offering digital wallets and BNPL to meet this consumer demand — and merchants will think about switching payment processors if they cannot currently accept certain payment methods, data shows.
Today, 80% of merchants accept digital wallets such as Apple Pay, Google Pay and PayPal, while 40% provide BNPL options. The popularity of these payment methods and the convenience they provide are important factors more than half of merchants consider when adding alternative payment methods to their online platforms. Furthermore, more than four in five merchants surveyed report available payment methods are important when choosing a payments processor, with one-third saying it is the most important factor.
Data in the report suggests that offering alternative payment methods, including digital wallets and BNPL, can directly impact merchants’ conversion rates. These methods increase eCommerce conversion more than other checkout features, including subscriptions and guest checkout.
The report contains crucial information for merchants looking to prosper in today’s competitive eCommerce arena. Ten charts of insightful data uncover the growing popularity of BNPL and digital wallets and how offering these alternative payment methods helps to increase conversion rates. Download the report to learn more about how eCommerce merchants benefit from offering alternative payment methods such as BNPL and digital wallets.
“How Offering BNPL and Digital Wallets Can Drive eCommerce Sales Growth,” a PYMNTS Intelligence and Adobe collaboration, explores the growing need for eCommerce merchants and their payment processors to enable online shoppers to use payment methods such as digital wallets and BNPL when making purchases. We surveyed 102 executives at firms that sell directly to consumers through eCommerce channels between Sept. 25 and Oct. 10 on how meeting consumer demand for alternative payment methods helps them grow their businesses. Our respondents included firms in manufacturing, wholesale trade or retail trade that generate annual revenues ranging from less than $25 million to more than $100 million.
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