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Got mobile? Your customers do. An increasing number of consumers tap into their mobile phones to do everything from surf the web to pay for transactions. In fact, experts predicted that shoppers would enjoy Thanksgiving Day dinner—and then proceed directly to the couch with their smartphone or tablet to shop early Black Friday deals. The juicy new term for this mode of shopping is couch commerce.
But whether consumers are buying on mobile while lounging in front of the game or they’re buying through their tablet over lunch break, the fact is that digital merchants need to start making it as easy as possible for customers to complete these transactions. Here are a few stats to jumpstart your journey into the world of m-commerce:
- 12% of American adults have paid for a transaction with a mobile device; however Forrester analysts expect that number to rise. (Forrester, via Mobile Commerce Daily)
- 60% of consumers who buy with mobile make purchases with their device while still at home. (PayPal, via Digby)
- 24% of U.S. iPhone users and 21% of Droid users have accessed a shopping app in the last 3 months. (Forrester, via Internet Retailer)
- Roughly 50% of mobile commerce originates on tablet devices. (Forrester, via Mashable)
- $119 billion in goods and services will be purchased through a mobile device by 2015. (ABI Research, via Econsultancy)
- 49% of those who use the mobile web at least 1x each week have made a purchase with their device in the last 6 months. (ROI Research, via Digby)
When it’s time for your digital business to boost mobile shopping conversion, contact ILD Teleservices. From ILD Mobile to ILD Bill to Phone, our billing solutions provide your market with a friction-free checkout experience. Find out what our alternative payment methods will do for your bottom line.
Does your payment solution pass the no-hassle test?
The kids are back to school and no doubt some of them are moaning and groaning about quizzes and tests. As an ecommerce professional, though, tests are a chance to make sure that you’re giving your customer the best experience possible—the kind of experience that makes it easy to complete their transaction with you. Providing hassle-free ecommerce payment solutions is an important part of converting shopping carts into sales receipts. Do your payment methods pass the no-hassle test?
Credit Cards
For years, credit cards have been the go-to method for ecommerce merchants. And they are convenient—if the customer owns one, that is. Nearly 25% of Americans don’t have a credit card. What’s more, only about 41% of college students—a market ripe for online media and video games—own a credit card, writes CreditCards.com. For these consumers, requiring a credit card for purchase is anything but hassle free.
PayPal
The popular online payment service has gained popularity because it allows anyone with an email address to pay for goods and services with a credit card, electronic bank transfer, or personal check. Sounds easy, right? Not so fast. The payment processor requires consumers to set up an online PayPal account that retains credit card or bank account details—info that risk-adverse consumers aren’t likely to share. In addition, the account verification process can take up to several days. If you limit ecommerce payment solutions to PayPal, customers might find it’s more hassle than your product is worth.
Bill to phone
This third party payment solution allows consumers to receive a bill for your services in their monthly phone bill. For non-credit card owning consumers, it eliminates the hassle of finding a friend or family member who does own a credit card (assuming, of course, the consumer would take the time to do even that.) There are also no ponderous, time-consuming accounts to set up. All your customer provides is very basic information, including their telephone number. It’s a simple transaction that requires no real effort on the consumer’s part—and that means a higher conversion rate for you.
Does your ecommerce payment method pass the hassle-free test? If not, contact ILD, a leading bill to phone alternative payment processor with the tools and know-how to deliver easy online payment solutions.
The death of the credit card is inevitable.
Read the final post of this 3-part series.
The Solution.
Hamlet’s charachter, Polonius warned, “neither a borrower, nor a lender be“. But most of us are one or the other, and it’s this endless willingness of lenders to lend and borrowers to borrow that has shaped this recent economy. It’s not all bad, because it kept the consumer economy moving steadily from the early 1990s until the meltdown of 2007. But what about the future? How sustainable is high interest borrowing and lending? Look around. We are seeing alternative payment companies like PayPal, BillMeLater, Boku, and ILD Teleservices, experience phenomenal growth. The alternative payment method (APM) providers offer consumers a secure way to shop online without increasing their debt load and interest loan with “no credit card required” offers, and no interest. While conversely credit card companies are implementing increasingly hostile practices not only toward consumers but with extra fees for merchants, too.
A national poll by Consumer Reports lends further validation to this argument:
- 45% of consumers say they are paying less with credit than a year ago
- More than one-third (32%) have paid off and closed a card since January 2008, and half of those that canceled did so in direct response to the actions of credit-card issuers, such as cutting limits, hiking rates, or imposing fees.
So, do you still think credit cards will be alive and well for another 60 years? Clearly, I think there are some big changes coming, but I’d like to hear your thoughts, so please share them below.
Oh by the way, here are some other interesting links. If you don’t go to the site, at least read the headlines:
Consumer Reports Poll: Consumers Angry at Credit Card Companies; Citing Unfair Treatment When Closing Accounts
Merchants Start Campaign in Battle Over Credit-Card Fees
Anheuser-Busch Steps Into Credit Card Transaction Fee Reform Battle
http://www.csnews.com/csn/cat_management/malt_bev/article_display.jsp?vnu_content_id=1004030231
“The fees that the credit card companies charge defy logic” – CHS Joins Battle Against Credit Card Fees
http://www.allbusiness.com/retail-trade/food-stores/4486057-1.html
Angry Consumer Slices and Dices Credit Cards To Protest Rate Increase
We’ve all seen the “no credit card required” offers promoting new products and services. With no credit card required, there’s no obligation, right? So, you check out the offer and you’re sold (remember – no obligation, right?)! You provide all of your contact information on the form (what’s the risk?), hit “next”, but wait, there’s more! Often times you DO need a credit card for that product, service or trial. Isn’t that frustrating?
Yes it is – and now they’ve got your information, but you don’t have the product, but you’re hooked! All too often, ”no credit card required” means “sign up using your PayPal, BillMeLater or checking account”. Well, what if you don’t have one of those? What if you’re like 23% of the US population (and growing) who don’t have a credit card, or got beat up on credit because of the economy, but you’ve got the funds to make purchases (just not going to add to your debt)?
The good news is that there are alternative payments, and “credit card-less” systems out there, and more people are choosing not to use a credit card for online payments. According to Javelin Research, the overall projected growth for online payments is expected to climb to $268 billion by 2013, from around $150 billion today because people want more payment options.
So, what do you do when you’ve provided your personal information to a company and it wasn’t quite what you expected? Do the same thing you’d do when you’re dissatisfied with a meal at a restaurant. Let them know. Usually, the business will remove your information. Got any other ideas?
Found a service online that you’d like to sign up for? Need to add points to an online game that you’re really enjoying? Heard about a new diet program on-line and want to start it right now?
As you’ve probably already experienced when you get to the point where you want to purchase something online, you see that your options for payment are either credit card or Paypal. Paypal is of course another form to pay on your credit card but with added security. But what if you are part of the 23% of US households who don’t have a credit card? What if you don’t want to add to your credit card balance and risk paying more in the end for your online purchase? Or, what if your credit card company just increased your APR from 12% to 24.99%, like the BoA consumer Rockerchic4God (search video on YouTube) who launched debtorsrevoltnow.com? As our economy tries to climb slowly out of the recession, we are all still gun shy with our spending and trying to get the most for our money, without paying all those surcharges and fees.
So, given the option to purchase an item online without spending any extra on credit card fees or interest rates, wouldn’t you? Would you benefit from knowing that you can make the purchase now, haveit added to your phone bill and pay it on a monthly basis? Well according to researchers like Jupiter, more consumers want just that. Jupiter’s study claims 48 percent of all online adult shoppers prefer the convenience of alternative payment methods. So, you have the luxury of purchasing an item without the risks of using a credit card and if you don’t have one, you’re not left out! Alternative payment methods, like bill to phone, gives consumers an extra month to pay for purchases. When I use a debit card to make purchases, the banks withdraws the funds from my account immediately. Oh, and if the account is a penny short, you know how the banks love to tack on those overdraft fees. Allowing you to add charges to your phone bill is a convenient, no risk, consumer friendly way to make a purchase online for certain items in which merchants have chosen to give you that option.
I think that given the credit card crisis and the recent consumer revolts, there is a market for other forms of e-currency (without the use of credit cards). So why not alternative payments like bill to phone? What do you think?
For many online merchants, it is difficult to pick an Alternative Payment Method (APM). There are payment platforms like PayPal which is very popular amongst merchants but not a popular option to the consumer, because not everyone has a credit card or checking account option. Alternative payment options are on the rise with the credit crisis and economic downturn hampering the average American’s budget. Adding an APM to the checkout process allows merchants to reach a bigger market and ultimately grow their business in a down economy.
ILD Teleservices offers a Bill to Phone payment option for merchants conducting business online. Additionally, the company operates as a back office backoffice resource for ecommerce providers and digital merchants. ILD operates US based call centers and support to handle any backoffice problems a merchant might have.
Visit our site to learn more about how ILD Teleservices can help you grow your online business.
According to a poll performed by CyberSource, merchants who accept four types of payments (PayPal, credit cards, online checks, and Bill to Phone) have more customers convert than those merchants with a single payment option. The conversion rate is 20% higher for merchants with several payment options.
“Adding payment types can be effective because the Internet is now reaching well beyond the early adopter. We’re hitting different demographics now; people who may prefer not to use credit cards and people who don’t have them. Others simply prefer the convenience of an alternative payment method for a single transaction.” -Doug Schwegman, CyberSource director of customer and market intelligence.
Reach more of your customers by using ILD Teleservices’ Bill to Phone billing. Increase your conversion rate and expand your customer base. For more information click here.
Article on Alternative Payments
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