Increase Mobile Revenue by Offering Consumers a Choice of Payments

Apr 07 2021 | PayPal Editorial Staff

Consumers expect enhanced brand experiences on mobile, including easy navigation and a seamless checkout where they can use preferred payment methods. The growth of mobile commerce has been accelerating in the current dynamic market alongside a steady rise in consumer adoption of alternative payment methods. Understand the impact of these digital trends and steps you can take to stay improve your customer experiences. 
Key Findings
Many consumers are not satisfied with merchants’ mobile checkout experiences. 

Though consumers are increasingly using mobile for shopping, merchants struggle with low conversion rates on mobile sites and apps. A significant number (42%) of consumers are not satisfied with mobile checkout experiences, partly due to misalignment between consumer expectations on checkout pages and merchants’ features. Merchants struggle with checkout abandonment due to suboptimal user experiences.
Most merchants plan to expand digital wallet types to offer consumers payment choice and security. 

Payment choice is important to consumers; the availability of multiple digital payment options was the most important feature in checkout pages (70%). Over a third of consumers have abandoned a mobile purchase recently due to a lack of payment options. They prefer not to share financial details
with merchants — the top reason over a quarter (27%) use digital wallets for mobile purchases. Merchants recognize the opportunity; 73% of e-commerce leaders plan to expand digital wallets on mobile.
Merchants can increase mobile conversion and revenue by providing a choice of payment options and digital wallets. 

By implementing digital wallets, merchants have increased mobile conversion (63%) and revenue(70%). Consumers are more likely to buy (71%) and feel positively toward the brand (62%) if they have a choice of payment options and digital wallets. Defaulting to a payment method causes negative sentiment toward brands (75%) and may risk abandonment (74%). A curated set of digital wallets enhances the brand, optimizes mobile experience, and increases reach across segments like consumers under 25, who are among the most demanding consumers in Forrester’s Empowered Customer Segmentation.

The content of this article is provided for informational purposes only. You should always obtain independent business, tax, financial, and legal advice before making any business decision.

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