Experts say two (or three) is better than one when discussing payment gateways. Still, every approach has its pros & cons; and the situation often differs from one business to another.
The gateway is the service that confirms and verifies a transaction before authorizing it to proceed to completion. These gateways scrutinize and permit transactions for the different payment avenues so you must double-check to see if a vendor fits your needs.
Also, service offerings vary from vendor to vendor so you must be as specific as possible. Factors like projected transaction volume, ticket value, business model, and whatnot all determine how much you pay.
Multiple gateways offer troves of benefits to business owners who implement. Besides enabling your customers to pay in many different ways, you also enjoy troves of data concerning your audience’s payment habits and a backup gateway when one system is down.
The 5 Pros of Using Multiple Gateways
- Troves of useful customer data
Various payment gateways expose you to use data sets that you can analyze and gain clues about customer behavior.
They also offer a wide range of uses and analytical data; e,g by allowing you to group buyers per their location, nation, preferred currency, payment avenue, and so on. These extra clues allow you to make data-driven decisions and offer insights on how to improve each transaction.
- Guarantees payment security
Internet buyers love to shop in a safe environment so a payment gateway is a must-have. Gateways play a vital role in encrypting data and sharing it safely with the involved parties. Today’s customers prioritize payment security than you imagine; a Baymard Institute study revealed that 20 percent of buyers abandon carts because they didn’t feel safe sharing their credit card data on the ecommerce site.
With many payment methods to use, shoppers can easily switch to their second-favorite next methods. Options also increase customer trust in your business and can boost cart conversions significantly.
- Collect payments globally
Because ecommerce has gone global, you must ensure payment comfort for customers from all corners. Selling to a large audience with different currency and payment method preferences means you must use multiple gateways with the relevant ways to pay.
The ability to appeal to a large global audience prepares your brand for international success. For instance, while PayPal and plastic cards dominate the US ecommerce front, you can’t do much in Asia if you don’t include Alipay.
- Instant backup
It’s okay to believe that your payment gateway won’t breakdown. Nevertheless, it’s better to stay safe than sorry. Adding various payment methods offer customers an alternative avenue in situations where they can’t use their preferred avenue (for whatever reason).
Relying on a single gateway can mean lost sales when a technical error happens or you face issues with your service providers.
- You appeal to a larger audience
Many customers will drop or continue purchase at the checkout stage. Their decision often depends on the availability of their preferred payment avenues. Allowing shoppers to pay in many ways makes you appeal to a larger audience.
Author Bio: Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.