What Type Of Payment Options Should You Offer?

As a business owner, you care about making your customers happy. You go the extra mile to meet their needs, providing excellent service and offering popular products. Payment options are one area related to customer satisfaction that you can’t afford to overlook. As times change, so do payment trends. What kind of payments should your business support?

Popular Payment Options in the United States

In the past, cash was king. Paying with $20s or $50s just made life easier. In the last few decades, paper money has faded almost completely from public use. In its place, alternatives have grown immensely in popularity.

Mobile Payment Apps

Over 300 million people use smartphones in the U.S. In comparison, the entire U.S. population is only around 330 million. That means at least 90% of Americans own a mobile device. Apps such as Google Pay and Apple Pay give iPhone and Android users a fast way to make payments online and in-store.

If you want to attract mobile users to your website, you need to accept this type of payment option. Make sure you choose music store POS software with integrated payments for Apple and Android.

Online Payments

In the same vein, online payment providers also allow for a variety of card-not-present transactions. PayPal, Square and Stripe are a few examples of apps that support online purchases. Once users set up an account, they can link the online payment app with a credit card, debit card or bank account. At checkout, they don’t need to mess around with any details, making for a smooth payment experience.

Supporting online payment apps can increase the types of products and services you can sell online. In addition to selling physical media, such as records, you can sell digital products. Integrating online payments possible to set up recurring payments for subscriptions and design reward programs.

Credit Cards

Even though credit cards have been around for ages, they’re still one of the preferred payment methods for Americans. There are several reasons why Visa, American Express, Mastercard and other credit cards are still going strong:

  • Freedom to pay anywhere
  • Convenience of cash-free payments
  • Ability to buy now and pay later
  • Airline miles, cash-back programs and other rewards

Credit cards also have the flexibility for online payments. When paying directly with a credit card, clients need to enter their card details at checkout.

To comply with data protection rules, make sure your e-commerce website has integrated payments. That way, credit card data is stored in encrypted form.

Conventional credit card readers don’t cut it anymore. Today’s credit cards and other card-based payment options come embedded with special magnetic chips. These EMV cards are inserted into a dedicated terminal that verifies authenticity and authorizes transactions. Swiping is out, and EMV is in.

Debit Cards

While not as popular as credit cards, debit cards are still important to many customers. These cards withdraw funds directly from the person’s bank account. This option provides the convenience of credit cards but without the risk of high interest rates or late fees.

The POS equipment necessary for accepting debit card payments is identical to what you need for credit cards, and the majority of debit options work online as well. Accepting this type of payment gives your clients the freedom to decide how they prefer to pay.

Consumer Financing

There are several varieties of customer financing, ranging from branded credit cards to buy now, pay later plans. BNPL financing businesses generally provide better terms than credit card companies, often giving customers offers for 0% interest for a certain number of months.

Popular BNPL options include Klarna, Affirm, Avalara and Afterpay. Deciding whether or not to support customer financing depends on your company’s circumstances, the purchasing habits of your clients and your overall profit margins. On one hand, offering financing can encourage customers to buy high-value musical instruments they may not be able to afford otherwise. Plus, you get paid immediately. On the other hand, BNPL providers charge business owners a percentage of sales for this type of service.

The Benefits of Supporting Multiple Payment Options

Allowing people to pay the way they want delivers a better overall shopping experience. In addition, it can boost sales and lead to more customers. Integrating modern payment options is essential for competing online.

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