Optimizing customer payment experience raises conversion rates in e-commerce

It is in the details that companies working with e-commerce can get ahead of competitors, retaining customers and increasing revenue. One of the ways to do this is to take good care of the payment flow during the purchase. The optimization of the customer experience after it has already entered the payment phase is a small adjustment, but it makes all the difference. The potential for additional gains reaches 20%.

Search a recent report by Nuvei showed that, in general, the optimization of the payment process can generate revenue up to 30% higher in e-commerce, and this includes improving the consumer experience while he is paying for his purchase. The report found that 70% of shopping cart abandonment happens after the customer enters the payment flow. This suggests great opportunities for adjustments also at this stage. That is, it is not enough to offer good products and services on a friendly website, for example: you need to think about the fluidity of the experience also at the time of payment.

To improve transaction performance and increase conversion rates, companies should aim to optimize three points: removing friction from the payment process, offering relevant payment and financing options, and minimizing transaction errors.

Low friction payments are key

Another finding of the Nubei report was the fact that 42% of withdrawals occur when the e-commerce system asks the customer to enter personal data and payment information. One way to overcome this difficulty is the implementation of the autocomplete functionality through browser plugins and digital wallets, along with express payment solutions such as Apple Pay or Shop Pay. This initiative reduces the burden on the customer, making the experience more satisfactory.

Also, allowing consumers to complete purchases in guest mode can help capture more sales, as those who are not comfortable creating an account will tend to follow through with payment.

It is noteworthy that these approaches reduce the amount of steps buyers must go through to finalize a product or service acquisition, keeping their purchase intent high until the transaction is completed. Industry research suggests that removing friction from the payment process can lead to a 35% increase in conversions. This data signals the direct impact of simplified payment experiences for revenue acceleration.

Sufficient payment and financing options

While offering multiple payment options is advantageous and tends to reduce cart abandonment rates, the conclusions of the Nuvei report suggest the need for a strategic approach.This is because an excess of options can lead to decision fatigue, increasing the complexity perceived by the customer in relation to the transaction process.

Therefore, it is crucial to select, test and prioritize payment methods consistent with the preferences and habits of the target audience, as well as adapt the payment mix depending on the market. Another important point is the integration of flexible financing solutions, such as installment plans or options of “buy now, pay later” (BNPL, in the acronym in English), which democratizes high-value purchases and further stimulates conversions.

Fast and accurate transaction processing

In the survey by Nubei, almost a quarter of brands reported that their customers definitively abandon carts after declined payments or error messages. Other 31% cited slowness in transactions as one of the most common negative feedbacks they received. Today, the main market references indicate that consumers expect to complete a payment transaction in e-commerce in less than two minutes, while having low tolerance for declined payments 42% of consumers move away after experiencing a payment error.

So, to align with these customer patterns and behaviors, ecommerce brands need to ensure that their payment infrastructures are not only fast: they must also be scalable and accurate, without errors. In this sense, payment media technology is a great ally, with tools such as cascading mechanisms, account updater and robust redundancy of acquirers in target markets, especially during the high seasons. Enhancing the system architecture to support faster processing times and more reliable transactions can significantly reduce delivery rates and improve the payment experience.