How to pick the right payment solution for your e-store
A payment solution is an important tool to all e-commerce companies. The right solution will of course make it easier for you as an online trader to accept payments, but it can also help you convert more buyers, meet customer demands, and generate more income. In this article we will walk you through how to select the best payment solution in three simple steps. What do you need to consider, and what payment methods do online shoppers use today?
Pick the right payment solution for your web store in three steps
1. Decide if you want to run your e-store nationally or internationally
Are you selling to markets in or outside of Sweden? If you want to sell your products on markets outside of Sweden, it’s a good idea to look for a payment solution that also meets the needs of your customers in different countries. Vipps and Mobilepay are the equivalents to Swish in Norway and Denmark. If you’re selling to these countries, including these options may be beneficial.
Adyen is an example of a payment solution popular among international traders. They operate in most European countries and offer several international payment methods.
2. Find out how your customers like to pay
Depending on your target audience, your customers will prefer different payment methods. Target groups with weaker finances prefer paying in stages, while target groups who buy expensive products often like to pay by invoice. The more you know about your target audience and their purchasing behaviour, the easier it will be to find out what payment methods you should offer. If you don’t offer the preferred payment methods to your customers, they will find an online store that does.
3. Make sure that your e-commerce platform supports the payment solutions and payment methods
Some e-commerce platforms offer pre-installed payment solutions, others require you to implement payment solutions on your own. The latter can become quite expensive. Avoid this by comparing payment solution options and pick one from a developer perspective, one that is easy to connect to your e-commerce platform.
When the payment solution is connected and your first customers come in, you can save a lot of time by automating the purchasing of shipping. A basic requirement for happy customers is that packages arrive on time. With PostNord integrations you can track all packages automatically and take control of your deliveries. This means that you can spend more time developing your web store and less time on administrative work.
Three pieces of advice when selecting the best payment solution
Write a check list
It’s always good to create a checklist of the requirements you have for your payment solution. The list will make it easier for you to compare the different options. One suggestions is to divide or rank your requirements based on how important they are to you. What can you compromise on, and what does the payment solution have to offer?
Carefully check the cost of the payment solutions
It can be challenging to compare the costs of different payment solutions. The companies behind them often have complicated pricing models with different models for each payment method. A payment solution with unclear costs comes with the risk of eating up the margins of your products. Make sure to have a thorough understanding of the pricing models of the payment suppliers you’re comparing. For example, the payment solution Klarna Checkout might be one option, with its transparent pricing model for card payments.
Klarna Checkout can also be integrated with Skicka Direkt Business, our tool to simplify shipping and transportation of customer orders. By connecting the Klarna Delivery Selector with Skicka Direkt Business, you can for example show your customers the shipping options you offer straight in your e-store.
Only pick a payment provider that offers multiple payment methods
It’s rarely profitable to pick multiple payment solution providers. Your life as an e-trader is simplified if you pick a payment solution that can give your web store all the payment methods you need. That way, you reduce administrative work and don’t have to integrate multiple payment solutions with each other, which can save countless hours on development work. If you only have one payment solution and run into technical problems, you know straight away who to call.
Examples of payment solution providers:
- Bambora
- Hygglig
- Klarna
- Nets
- Paypal
- Payson
- Shopify Payments
- Stripe
- SveaWebPay
- Swedbank Pay
- Swish
What payment methods are most common in Swedish e-commerce?
Almost every year, Nets will release various e-commerce reports. In them, they investigate things like what payment solutions Swedish customers prefer. In the Nets report “Swedish e-commerce 2021”, it is revealed that most people prefer to pay by invoice. Second on the list is card payment, then payment via Swish, and payment via online banking. PayPal and Apple Pay are the least popular options.
- 35 % prefered invoice
- 22 % prefered card payment
- 19 % prefered Swish
- 13 % prefered direct payment via online banking
- 4 % prefered payment via PayPal
- 1 % prefered payment via Apple Pay
- 6 % didn’t know
However, what payment options customers prefer differ from what methods they actually use.
- 57 % pay by card
- 52 % pay via Swish
- 46 % pay by invoice
- 33 % pay by direct payment via online banking
- 13 % pay by PayPal
- 4 % pay by Apple Pay
Surveys like this one give you a great pointer when considering what payment options you should offer your customers. The numbers are general, which means that the preferred payment methods may vary between different industries and target groups.
Bonus Tip! Get more customers to complete their purchases online
As an e-trader you know how hard it can be to get a customer through the entire purchasing process – from awareness to purchase. You also know how costly it can be to lose a customer as late as during the payment process. Here, we list three things that can help you get the customer across the finish line.
More payment options equals more customers
More options for how to pay is a crucial factor to attract many customers. In the study from Nets 2020, Swedish customers were asked why they choose to cancel their online shopping. 11% replied that the payment option they wanted wasn’t available. Offering more payment options is, in other words, an obvious way to get more customers to complete the process.
Save the customer’s details – if they ask for it
In the Nets survey ”Swedish e-commerce 2020”, every fifth person said that they would shop more if their personal details had been saved in the web store. When all personal details are saved purchases become much quicker to complete, which leads the customers to shop more often. Some customers, however, don’t want their personal details to be saved, probably due to fear of fraud. So give your customers the options to voluntarily save their contact details in your web store. Be clear about how safely the information is stored, and be sure to manage personal details in accordance with GDPR. That way you’ll keep customers happy, and get more people to complete the purchase process.
Show the logos of the payment companies on your start page
Payment companies like Klarna and PayPal instil trust and safety in consumers, while Swish give them a sense of efficiency and simplicity. By displaying the logos of the payment companies already on the start page, you send positive signals to all potential customers who are considering making a purchase. Another trust and safety signal is the Trygg E-handel certification.
More about e-commerce
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