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The ideal online payment method
If you have an online store, you want to ensure that customers can check out smoothly and securely. Axxes consultant Cyril Hendriks provides tips to optimize this online payment experience.
As a retailer, there's nothing better than inspiring people to happily head to your checkout counter after browsing through your store. No one enjoys paying, but you and your colleagues make the process as pleasant as possible by installing fast payment terminals and greeting every customer with a smile. Simple, right? In a brick-and-mortar store, yes, but it's not so straightforward online.
In an online shop, there's no cashier to welcome you with a smile, and the payment process is typically less seamless. How do you decide as an online store which payment methods to offer? What risks do you face? And what does the future hold? Axxes consultant Cyril Hendriks sought answers to these questions.
Bancontact or credit card?
For a customer, two things are essential: convenience and trust. Initially, they want to be able to check out smoothly. Additionally, people want to be sure they will receive the purchased products or services - which is naturally easier in a physical store than in an online shop. Especially with unfamiliar online shops or purchases of large amounts, people tend to be more suspicious.
Convenience also revolves around the payment methods you offer. In Belgium, Bancontact is undoubtedly the most popular choice. Around 60 to 70 percent of all transactions at Belgian webshops are made using Bancontact! A significant advantage of Bancontact is that it has the lowest transaction costs for shop owners and carries no risk of chargebacks.
Following Bancontact are credit card payments, typically Mastercard and Visa in Belgium. They account for about 20% of purchases. Since people prefer to make large payments with a credit card, it's important for webshops selling expensive products to offer this option. Customers generally choose credit cards because they offer insurance in cases of non-delivery, defective products, or disputes with the webshop. Convenient for the customer but less so for retailers. Payments via credit card are significantly more expensive - sometimes up to ten times more costly than Bancontact payments.
Those paying with a credit card can use a chargeback in disputes to request a refund. Because this method is sometimes exploited for fraud, it's essential to work with your PSP (Payment Service Provider) to implement robust fraud protection, especially if you want to offer credit cards as a payment method.
One-click checkout
In addition to Bancontact and credit cards, there are several other payment methods available. Think of options like paying afterwards through services such as Klarna, Billink, and Riverty (formerly Afterpay). Especially in the clothing industry, customers who shop online want to try on their outfits at home before making their final decision. As a webshop, you send out products without having received payment. Specific providers take on that risk, but as a retailer, you should expect higher transaction costs. Additionally, there's a chance of more returns, but if you sell clothing and target a young audience, you can't avoid this reality.
Payment via digital wallets such as Apple Pay, Google Pay, and PayPal is also gaining popularity. In such digital wallets, customers store their favorite cards and address details. Through an Express Checkout, they give their consent for payment with a single click and share their information instantly. Customers increasingly opt for these types of payments, which save time and hassle.
In addition to players like Apple Pay, Google Pay, Klarna, and PayPal, credit card companies have also developed quick checkout options. The initiative, called "Click to Pay," will soon be available in Belgium as well. Bancontact is also said to be working on an alternative. It's challenging to predict which payment method will become the most popular in the future, but ultimately, only one person decides: the customer.
The essence
Feeling a bit overwhelmed by all these terms? Cyril Hendriks summarizes the essence:
- Bancontact is the most popular method in Belgium. Not offering this option is not advisable. If you offer relatively expensive goods or target international customers, you'll also need to offer credit cards.
- In the clothing industry, it's also common to offer customers the option to pay afterwards.
- In the future, Quick Checkout payment methods will become commonplace.
- Feeling unsure? Contact Axxes for tailored advice for your webshop.
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Cyril Hendriks
