Payment methods: how to choose the ones that boost your sales

Choosing the payment methods you offer your customers is much more than just a technical step: it is a strategic lever to boost your sales, build loyalty, and improve the shopping experience.

A good mix of payment methods can:

• Increase your conversion rate
• Boost the average basket value
• Reduce cart abandonment
• Improve customer satisfaction

Conversely, a limited or poorly adapted selection for your markets can hinder your sales and frustrate your customers.

1. Understand your customers and your markets

Every market and customer segment has its own preferences:

• France : credit cards remain dominant, but installment payments (3x, 4x interest-free) are booming, and digital wallets like Apple Pay and Google Pay are seeing rapid growth. 
• Netherlands : iDEAL accounts for over 60% of online payments.
• Spain : Bizum is essential for quick payments.
• Young and urban markets : Apple Pay and Google Pay are popular for their speed and security.

💡 Purse Tip : analyze your sales by country, channel, and device to identify high-potential payment methods.

2. Main categories of payment methods

The essentials

• Bank cards: universal, fast, secure.

Definition : A physical or virtual payment method linked to a bank account, used via a terminal or online.

Usage : In-store or e-commerce purchases, immediate or deferred payment.

Examples : Visa, Mastercard, American Express.

• Digital wallets: seamless and secure payment, ideal for mobile.

Definition : An application or online service that allows you to store and use saved payment methods.

Usage : Quick payment on mobile or desktop.

Examples : PayPal, Apple Pay, Google Pay

Conversion drivers

• Installment payments: increase average order value and conversion rates.

Definition : Paying for a purchase in several fixed installments, with or without fees for the end customer.

Usage : Facilitating the purchase of high-ticket items (e.g., 3x, 4x interest-free).

Examples : Alma, Oney, Klarna

• BNPL (Buy Now Pay Later): pay after receipt, popular with younger consumers.

Definition : Deferred payment allowing an order to be settled after a set period (often 30 days or more).

Usage : Fashion, electronics, impulse buys.

Examples : Fintecture, PayPo,...

Specific solutions

• Instant bank transfer: : fast, irrevocable, low fees.

Definition : Instant money transfer between two bank accounts, available 24/7.

Usage : E-commerce payments, bill settlements, B2B.

Examples : Wero, iDEAL, SP Plus…

• SEPA Direct Debit: perfect for subscriptions and recurring services.

Definition : Authorization given to a merchant or service provider to automatically debit a bank account.

Usage : Subscriptions, utilities, insurance.

Examples : Payzen, Slimpay, Easycollect…

• Pay By Link : ideal for collections or remote sales.

Definition : A unique link sent to the customer to redirect them to a secure payment page.

Usage : Remote sales, payment reminders, quote-based payments.

Examples : HiPay, Scalapay…

• Gift cards : a powerful marketing tool for customer loyalty.

Definition : A physical or digital card loaded with a balance that can be used for specific purchases.

Usage : Customer loyalty, corporate gifts, marketing programs.

Examples : illicado, BuyBox, Easy2Play…

• Prepaid vouchers : a powerful marketing tool for customer loyalty.

Definition : A specific payment method, often tax-exempt, used within a defined legal framework.

Usage : Dining (meal vouchers), leisure, personal services (CESU).

Examples : Chèque Déjeuner, Chèque-Vacances, and Pass Restaurant vouchers.

Emerging methods

• Local mobile payment : tailored to regional habits.

Definition : A national or regional application linked to a bank account, enabling instant transfers.

Usage : Online or in-store payment, depending on local customs.

Examples : Bizum in Spain, MB Way in Portugal, Swish in Sweden, or Twint in Switzerland.

• Cryptocurrencies : innovative image, tech-savvy niche.

Definition : Decentralized digital currencies using blockchain technology.

Usage : International payments, tech-savvy communities.

Examples : Bitcoin, Ethereum, etc.

3. How to choose your payment methods?

To avoid an overwhelming "endless list" effect that detracts from the user experience, base your choice on:

• Local habits (Bancontact in Belgium, iDEAL in the Netherlands)
• Your product type (BNPL for high-value baskets)
• Your target demographic (Apple Pay for mobile-first audiences)
• Your business goals (loyalty, average basket value, reducing unpaid invoices)
• Your technical constraints and PSP costs
• Your industry (subscriptions with monthly direct debits, etc.)

Orchestration: the real differentiator

Offering multiple payment methods is good. Orchestrating them intelligentlyis better.

With Purse, you can:

• Quickly activate new payment methods with one click
• Adapt payment to the customer's profile and context
• Optimize your costs and acceptance rates through multi-PSP
• Offer a smooth, frictionless payment experience

Boost your conversion with Purse payment orchestration
Give your customers the right payment method, at the right time.
Speak to a Purse expert and discover how to optimize your payment methods in just a few clicks.

Sources

• Observatory for the Security of Payment Means – 2023 Annual Report (September 2024) banque-france.fr
• Banque de France – OSMP Activities (September 2024) banque-france.fr
• Observatory for the Security of Payment Means – Vie-publique.fr Summary (September 2024) vie-publique.fr
• Most Popular Payment Methods by Country – Noda.Live (2024) noda.live