Consumers are used to having instant connections with information, entertainment, other users through text message, social media and products they want to purchase. Since people expect that almost all their needs can immediately be addressed with the help of technology, it is not surprising that they would rather go for online payments and the businesses that accept them.
The top reasons why people choose online payments are as follows:
They get rid of geographical limits.
A person who travels to another country/continent has to adapt to the place and make do with what they have inside their wallet. This may mean exchanging foreign currency or using another credit card than what they would commonly use. Online payments get rid of the problems that keep them from joining in an international marketplace.
A lot of payment processors supply businesses so they can accept a wide range of currencies, automatically compute the current exchange rate based on the currency, and also adjust to the language and info provided in checkout forms to take in the different languages spoken by buyers, depending on the currency used.
They are more convenient than ever.
Payment technology is so advanced to the extent that consumers are able to make an online payment even though they did not bring their card or wallet with them. Besides the growing popularity of mobile wallets, studies reveal that online consumers continue to go for other simpler forms of funding. As a matter of fact, above 80% of respondents said that they made use of a card-free payment tool last year for online payment.
They let consumers save on time.
Aside from being convenient in terms of transaction speed, online payments get rid of the need for consumers to go to a physical store, spend their precious time, and wait for their turn to pay. Studies regarding the psychological effect of waiting in line show how time is precious to consumers. They have the tendency to exaggerate how much waiting consumes their time by almost 40%. Even if the length of time lost by a customer from waiting in line is true or just imagined, the perception is real. Online payments give a clear advantage just by providing the buyer with a choice of how to spend time.
They give more buyer protection.
When customers buy from a small business – whether online or from a physical store – they need to establish a certain amount of trust with the seller, since this is their first time to buy from this merchant. No matter how clear a business explains its policies on return, exchange, as well as customer satisfaction, consumers may still be a bit hesitant. Online payments can address this problem. When they use a credit card for online payment that gives a guarantee of the lowest price for a declared number of days, an extension of manufacture warranties and the right to dispute a purchase, they can have the peace of mind that they will be given protection, whatever the merchant’s policy is.
They duplicate their present financial habits.
More than 50% of Americans depend on the online banking tool to pay bills, transfer funds and track their money. Online payments duplicate the financial habits that have been adapted by a lot of consumers.