Premium payment services make online shops fit for the future
With Mollie you can integrate over 20 important payment methods with one click. The integration plugins make this possible for over 120 powerful shop systems and e-commerce applications.
The share of e-commerce in retail sales was 11.2 percent in 2019. In the best-case scenario, it could grow to 19 percent by 2026, according to a study by ibi research at the University of Regensburg. “And due to the ongoing pandemic, the peak season will ensure a further upswing – especially in m-commerce,” diagnosed Vanda Astfäller, Sales Lead at Mollie DACH.
This is also confirmed by the Salesforce Shopping Index from the second quarter of 2021: Buyers used a smartphone for 57 percent of global and 50 percent of German online orders in the first quarter of 2021. And a study by the research institute ECC Köln und Mollie showed that 32 percent of the turnover of German e-commerce retailers comes from abroad. The top buyers are primarily the Austrians, French and Swiss.
These three trends have far-reaching consequences for online shop operators and retailers with an online shop. You should differentiate your offers, marketing, pricing and payment methods at the same time more internationally and locally. The checkout in particular decides whether the conversion rate is high or low.
Abandoned purchases due to a lack of payment methods are the most common reason for low conversion rates. Various studies show that PayPal is still the most popular payment service in this country. “Buy now, pay later” (BNPL), i.e. purchase by invoice or installment, is also becoming increasingly popular. Already 21 percent of Germans would like these BNPL offers in the checkout, as Klarna offers with purchase on account. 48 percent want to pay with e-wallets such as PayPal and, with an increasing proportion, also Apple, Google or Amazon Pay. But: German dealers meanwhile sell in an average of eight European countries, and this is a different picture!
In Great Britain, Belgium and France the credit card continues to dominate with over 50 percent, which in this country only comes to 19 percent. 69 percent of the online retailers surveyed also stated in a survey that they are more successful in cross-border trading if they offer local payment options. 58 percent believe that locally preferred payment methods increase sales. Locality is also becoming more and more important with the currencies on offer. Because those who accept national currencies have higher sales, say 66 percent of those surveyed. Especially those who want to reach well-to-do customers in Great Britain, Switzerland and Eastern Europe cannot avoid a localized payment mix.
In addition to an inadequate payment mix, a low conversion rate is often also due to a lack of optimization for mobile devices. Because the smaller the screen, the more likely it is that a purchase will be abandoned – for mobile users: the rate inside is over 85 percent. In view of the fact that orders via mobile devices will continue to increase, online retailers should optimize their entire ordering process for mobile applications. The presentation of goods, the click routes and the checkout must therefore be adapted to smartphone displays today. Above all, the tap areas should be larger so that they can be hit better. In addition, the optimization of the click routes and the possibility of logging into a web shop with the existing social media login data help. And for payments with mobile devices, e-wallets are also playing an increasing role if they take place within the online shop without the customer having to be redirected to another website with renewed authentication.
These three trends make it clear that payment transactions will develop into an open and ﬂ exible ecosystem with more and more offers and new processes. This offers enormous opportunities for online retailers – if they properly integrate payment service providers and modern payment methods.
Mollie For example, it provides over 20 payment methods in all currencies that can be integrated into any web shop with just a few clicks. This makes it possible to localize online shops that also want to reach international customers. In addition, Mollie has integrated all payment methods so that they take place within the checkout in the online shop. A forwarding to the selected service provider is thus superfluous.
Older and less experienced customers in particular benefit from this, as shop operator Roeckl discovered after the integration of Mollie. The complaints about bill purchases decreased significantly. In addition, Mollie has with the „Grow Kit“ popular applications such as Billomat, Taxdoo and Sencloud are integrated and offer an interface to Datev. The tools that can be operated via a dashboard make shop management easier. Mollie gives its users freedom for optimization and makes online shops fit for the future.