Improving travel e-commerce with better online payments: 6 proven practices
A smooth and optimized e-commerce customer experience must focus on all of the steps that the customer takes when interacting with the brand and making a purchase online.
When it comes to payments, that includes a friendly and quick checkout process supported by security measures that lower the risk of fraud while at the same time still providing a seamless experience and not bringing unnecessary extra steps or inconvenience.
It also means meeting customers where they are by offering a wide variety of online payment methods that are recognizable to customers regardless of geography.
Here are 6 proven practices that travel merchants can use to improve e-commerce business performance through better management of online payments:
1. Know your customers and their payment preferences
By providing customized payment method options via the payment gateway that customers use to complete the online checkout process, businesses can improve their conversion rates in domestic and international markets.
The more payment methods that merchants offer, the more likely they will appeal to a broader audience and ensure a seamless shopping experience for everyone. As they continue to navigate one of the world’s most competitive online sectors, travel businesses need to keep a close eye on changing consumer behavior and constantly adapt to the demands of this rapidly growing industry.
Crypto and BNPL-related payments are increasingly making their way into the travel vertical. On the US market for example, 22% of consumers plan to use cryptocurrency to pay for part of their travel in the coming years.
2. Prepare your store for an omni-channel approach
Mobile commerce is a key channel particularly for Generation Z and Millennials, which together now represent every consumer between the ages of 18 and 40. These two generations convert via mobile more than any other generation.
Merchants do great when they offer shoppers their preferred payment methods and a seamless shopping experience, as part of an overall omnichannel-friendly user journey.
To increase conversion rates, merchants should ensure that their payment page design is well-optimized and the checkout experience is user-friendly on all available channels. At a time when customers expect a smooth, visually appealing, and user-friendly payment experience across all channels, merchants can easily lose customers and credibility by not providing the customer’s preferred payment method, or simply by delivering a clunky checkout experience.
3. Acquire locally
One way that merchants can accept more payment methods while incurring lower fees (and enjoying higher approval rates) is by working with local acquiring banks, or “acquiring locally” in industry-speak.
Ordinarily, integrating new payment methods or acquiring banks in different markets would require merchants to onboard new payment vendors individually – which can quickly become costly particularly if the merchant is active in multiple markets. For travel companies, one way to get around this is by working with a payment provider who can provide access to local payment processing and acquiring via a single global connection.
An international transaction involves the interaction of different acquiring banks, payment processors, and payment method providers—many of which are unique to specific markets. For travel companies to integrate these diverse layers seamlessly into their online stores and take advantage of global opportunities, a global payment solution is essential.