Cart Abandonment Killer: How the Right Payment Gateway Boosts Conversions
Shopping cart abandonment is a long-standing problem for most e-commerce companies. Attracting traffic to your website, creating a smooth user experience throughout the shopping process and persuading potential customers to add items to their shopping cart is a huge accomplishment. And then they disappear. While several reasons can lead to cart abandonment, the payment gateway is often the primary reason why.
Why payment gateways matter more than you think
While payment gateways are typically viewed as passive, behind-the-scenes components that transfer funds from the customer to the merchant, their true impact on the buyer experience extends far beyond simply transferring funds. When it comes to building shopper confidence, ease of use and transaction completion rates, the payment gateway plays a major role.
Whether it is due to poor payment gateway usability, technical errors or limited payment options, hesitation can quickly become abandonment. On the other hand, a smooth, secure and quick payment process can motivate uncertain shoppers to take the last few steps toward completing a sale.
Speed and simplicity will always win
Most times, customers do not abandon their shopping carts because they have changed their minds about making a purchase. Instead, the checkout process becomes an obstacle. Customers may find themselves faced with confusing fields, a lack of familiar payment methods or an extra login screen that they were not anticipating. Each additional step creates friction.
An ideal payment gateway removes this friction. The right payment gateway offers returning customers a remembered experience, provides a guest checkout option and accepts digital wallet integrations. The right payment gateway does not ask for unnecessary information; instead, it functions smoothly and quickly. In a world of one-click checkouts, the reliability of the right payment gateway is what consumers expect and demand.
Trust can be built in seconds
When it comes to providing sensitive financial information, trust is paramount. Any hesitation by a shopper to enter their financial information could result in abandoning a cart, due to delays in loading, an unfamiliar interface, or an unfamiliar third-party processor. Consumers are not willing to risk sharing their personal and financial information in order to complete a purchase. Trustworthy payment gateways demonstrate security. Visual indicators such as padlocks, SSL certificates and recognisable third-party processors provide subtle assurances that a consumer’s data is being handled safely.
For international shoppers, localisation builds upon that trust. By supporting multiple currencies, translating the payment gateway interface and offering payment options based on the shopper’s region, you are demonstrating to international shoppers that you speak their language, both figuratively and financially.
Recurring billing: The silent strength of automation
Automated recurring billing is a core operational aspect of many e-commerce businesses today, including but not limited to subscription boxes and SaaS software. In order for merchants to automate the billing process, they require a payment gateway that understands automated billing, is able to securely encrypt and store payment details, and complies with evolving regulations, such as the UK’s Strong Customer Authentication (SCA).
To make this work, you need a reliable way to get started with credit card processing that handles automated payments. The initial experience matters just as much as the ongoing one. If customers struggle to set up their recurring payment, they won’t hesitate to walk away permanently.
The unseen conversion increase you have been missing
Many merchants spend large amounts of time and resources trying to improve their conversions through advertising, design and promotions. However, the vast majority of these merchants are ignoring the last leg of the buying process – the payment experience. In fact, the selection of a payment gateway is a critical element that can either positively or negatively affect conversions.
With a contemporary, optimised payment gateway, merchants can eliminate unnecessary form fields, pre-populate customer data, optimise for mobile devices and implement retry logic to recover failed transactions. An optimised payment gateway can also help recover lost sales without the fanfare, merely by functioning properly.
What to look for in a payment gateway
Choosing the right payment gateway isn’t about picking the most popular one. It’s about finding the one that aligns with your business model and customer behaviour. Look for:
- Seamless integration with your existing e-commerce platform
- Transparent pricing with no hidden fees
- Support for both one-off and recurring billing
- PCI DSS compliance for data protection
- Local and global payment methods
Test the experience from your customer’s point of view. Every second shaved off the process adds up to more completed checkouts.
Final thought
Cart abandonment isn’t just a sign of customer indecision. Often, it’s a technical issue dressed as hesitation. When your payment gateway becomes an enabler, not a barrier, conversions will improve naturally. The checkout is the last impression you leave with your customer. Make it count.
Top photo by SumUp on Unsplash
