Don’t let payment methods affect your conversion rate on your webshop. Choose the payment methods your customers demand. Find out which they are, here!
Did you know that 60% of online consumers abandon an online purchase if they can’t use the payment method they prefer?
More studies show that it can be a great disadvantage to offer only a limited number of payment options in your webshop checkout.
It can lead to many customers leaving the checkout process before completing a purchase, even with products in the basket.
Just as flexible freight and delivery methods can play a significant role in the purchase experience, flexible payment methods have been shown to be an important factor, too.
It should be simple and uncomplicated to complete a purchase from your webshop.
Here, we dive into the different payment methods to give you an overview of the most popular payment options, so you can make sure that you provide the best-possible experience in your checkout, in order to increase conversion and avoid losing customers.
Popular online payment methods
There are a number of different payment methods when it comes to paying online, depending on the customers and countries you sell to.
If you sell abroad, there are a number of elements to consider, as there can be quite a difference in the payment methods the different customers prefer.
Some like to pay by credit card, while others prefer to pay with their phone or by invoice. So, it can be a good idea to be acquainted with the most popular methods, so that you can accommodate your customers’ expectations of an easy checkout.
Which payment methods do the customers prefer?
Before choosing which payment methods you want to make available on your webshop, it’s important to consider which methods the customers actually prefer to use.
You should also consider which payment methods make most sense for your webshop and the products you sell.
There are a number of different charges with the various methods, so it is important to consider which payment methods make most sense to you, while still accommodating your customers’ preferences.
Do you remember the 60% we mentioned earlier?
This represents all the customers you stand to lose if their preferred payment type isn’t available. This, of course, is something you want to avoid.
Popular payment methods in Scandinavia
We have collected the most popular payment methods for the Scandinavian countries, to give you an overview of the customers’ preferences, so you have a better idea of which payment methods to provide for your customers.
Popular payment methods in Denmark
Source: Nets, Danmark, E-handelsrapport (2021): “Mest anvendte betalingsmetoder” (online)
Payment by card and phone
In Denmark, the most popular payment methods are paying by card and phone. Payment by card is still the most popular payment method.
However, it is decreasing in popularity, as many consumers choose to pay with MobilePay, because it is easy and convenient.
Payment by mobile phone is a fast-growing method that continues to develop with more suppliers. This method makes it easy, fast, and simple to complete a purchase, as the customer needs only their phone.
Some of the most popular phone payment solutions in Denmark are MobilePay, Apple Pay, and Google Pay.
Want to know more about the popular payment methods in Denmark? Click the button below. The guide is in Danish.
Popular payment methods in Norway
Source: Nets, Norwegian e-Commerce report (2021): The most preferred payment methods (online)
Payment by card and mobile
As the illustrations show, the most used payment method in Norway is card payment.
The most popular debit cards are Visa/Dankort and Mastercard.
When it comes to online purchases, this method is still highly preferred by consumers.
It provides confidence for the consumers, as they are familiar with the process and find it easy to use.
In Norway, paying by mobile phone is highly preferred as well, and the Norwegian payment service Vipps is particularly popular.
The phone-payment method is the second best rated and, like the Danish MobilePay, it is increasing more and more in popularity. The method is easy and quickly completes payments.
Click the button below to read more about the popular payment methods in Norway. The guide is in Norwegian.
Popular payment methods in Sweden
Source: Nets, Svensk E-Handel (2021): The most preferred payment methods (online)
Invoice payment and card payment
Invoice payment is the most common payment method in Sweden.
This is a type of payment where the customer receives an invoice and pays.
This method allows for payment to be postponed instead of paying straight away. This type of payment method is a good opportunity for webshops that wish to provide more flexibility for their customers.
This payment method is secure and highly valued by Swedish customers, as they have confidence in it, particularly because the payment can take place after the items have been delivered.
As the Swedish illustration shows, payment by card is the second most popular payment method, and it is still widely used by Swedish customers.
As a follow up, Swish, a payment method where the customers pay by phone, has also gained more popularity and is very attractive for the younger generation of Swedish customers.
Read more about the popular payment methods in Sweden by clicking the button below. The guide is in Swedish.
Which payment methods do I need on my webshop?
How you want to design and create your checkout is completely up to you.
But one thing is for sure - the customers want flexible payment methods.
It needs to be easy and fast to complete a purchase, and it needs to be safe and secure.
According to the research shown above, carried out by Nets, it is clear that Swedish consumers prefer invoice payment rather than payment by phone, whereas the Danish and Norwegian research shows a preference for debit card payment or payment by phone.
Another way to find out which payment methods you can take advantage of in your checkout is by doing a test run, offering multiple payment methods.
This gives you an insight and overview of which payment methods your customers prefer to use.
Alternatively, you can check out your rival companies, and see which payment methods they offer on their webshops.
How to offer payment methods on your webshop
When you want to provide different payment methods on your webshop, it is important to keep track of your payment solution.
Many payment solutions can have restrictions when it comes to the different payment methods that can be offered in your checkout.
So you should be aware of the different payment methods your payment gateway allows you to offer.
In order to provide some of the most popular payment methods on your webshop, it can be required to have a separate agreement with the payment provider.
You should also be aware of the webshop system you have.
Some webshop systems can be restricted in terms of which payment methods can be set up, so you should check this out before entering into an agreement with a payment provider.
A part of the customer experience: Easy return to your webshop
It might seem silly to start at the end in the customer’s purchase process, but nonetheless it can be quite beneficial to do so.
By starting at the end, we mean beginning with the return process.
Many customers start their online process by checking the webshop’s return procedures, before they make the purchase.
Research from Nets Danmark E-handelsrapport (2021) shows that up to 50% of all consumers have wanted to return an item, but found the return process too complicated or too time-consuming.
So, it can be very beneficial to adjust the return process, as it can actually be a determining factor in abandoned purchases and empty baskets.
But fear not! We have a solution for you.
You can create a good return experience by making it easy and convenient for your customers to return an item with Shipmondo Return Portal.
The customer just needs to fill in the information about the order, and choose the item(s) they want to return.
That way, it’s easy, simple, and flexible for the customer to make a return, while keeping it on your terms.
You can set up the Return Portal and customize it for your needs and wishes.
Use Shipmondo Order Management and make it easy for yourself to handle and manage return orders and refunds.
You just need to scan the attached return receipt, and start the repayment process right away. Gain a full overview of all of your outgoing (and ingoing) orders in one system.
See how easy it is for your customers to return an item through our return portal:
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