Mobile Payment Options: Maximizing Conversion Rates in 2023

by Paresh Khandelwal

43% of all US smartphone users have a mobile wallet and use mobile payment options for one-click purchases on their phones. 44 million people use Apple Pay alone. In the modern world, mobile means accessibility. People browse and purchase through their phones at an ever-increasing rate, and 85% of adult Gen Z members entering the workforce use mobile wallets at least once a month.

Needless to say, the market is ripe with mobile pay opportunities for brands that are ready to make the jump. When it comes to conversion opportunities, no system offers faster, more seamless checkouts and more accessible purchasing. This article will help you maximize your eCommerce and local conversion rates through the implementation of mobile payment options.

Understanding the Benefits of Mobile Payment Options

The benefits of mobile payment options are difficult to understate. When you look at the checkout experience created and the widespread use of mobile payments among younger shoppers, it becomes clear why a top mobile app development company would implement mobile pay and reap the rewards.

  • No Card Reading Delays
    • Stopping to pull out one’s credit card is a risky moment. It creates the risk of theft, loss, mistakes, and second thoughts. Mobile pay is instant once set up, and those who choose it usually already have it set up and ready to go.
    • Ex: A customer decides to do some shopping on their phone while on the bus or train home. With mobile pay, they don’t have to pull out their wallet or risk dropping their card.

  • One-Click Checkout for Returning Customers
    • When it comes to welcoming back returning customers for a quick and enjoyable checkout experience, mobile pay is unmatched. One-click checkouts access previous authorizations and instantly charge the customer’s account as the order is created.
    • Ex: Your customer buys a product and they want a second one immediately. With one click, the product is on its way in just a few taps in your mobile app.

  • Three-Click Checkout for New Customers
    • Onboarding new customers also takes little to no time. Sometimes in as few as three taps to the phone screen, new customers can connect their mobile wallet and make their first purchase.
    • Ex: A new customer is considering a purchase. They see that their favorite mobile payment gateway is available and quickly connect their account. They avoid the bottleneck and second thoughts about punching in card numbers.

  • Seamless Checkout Experience
    • Mobile payments offer a  checkout experience with no stops and no error-prone handshakes. In fact, some e-commerce mobile applications have perfected an exchange that doesn’t even feel like checking out while the user is automatically charged for goods and services.
    • Ex: Uber exemplifies seamless payments with an automatic charge when the ride is complete.

  • Impulse Shopping Opportunities
    • When checkout is that easy, customers can impulse-shop without guilt or the moment of second thought that might slow or prevent their purchase.
    • Ex: A customer wants your product on a spur-of-the-moment impulse. With mobile pay, it’s on their way before they have time to second-guess or make other plans.

  • Peer to Peer Gifting
    • Young people like gifts and are more open about payments. Often, mobile wallets are used to cover one another’s expenses which is made easy the more e-Commerce Mobile Applications make mobile payment available.
    • Ex: A customer hears a friend really wants an item from your store. They quickly use mobile pay to send the product to their friend as a gift.

  • Access the Younger Generation
    • And, of course, with mobile wallets as the favored form of payment for young people, offering this method makes your brand more accessible to the younger generation of shoppers, including teenagers, young adults, and early-career professionals.
    • Gen Z is interested in your products and connects their mobile e-wallet to your store to make one-time or routine purchases.

Implementing the Payment Options on Your Website or App

Mobile payments are enabled through the integration of mobile payment gateways. Gateways function as secure APIs between your eCommerce website and the user’s mobile wallet. The mobile wallet then acts as a connection to the user’s bank account such that a multi-layered authentication process takes place with each payment.

The payment gateway acts as the payment processor. Here’s how it works:

  • The mobile customer makes an order
  • Also, the payment gateway checks the selected  card and account
  • The payment gateway requests verification from the payment processor, which checks with the cardholder’s bank
  • When verification is successful, the payment gateway receives the go-ahead
  • The payment gateway initiates the payment and the merchant is paid.

This all happens in a near-instant process in which the payment gateway takes on the processing burden while the user and merchant both enjoy rapid, secure payment services.

Optimizing the User Experience

How can you use mobile payments to optimize your conversion rate by improving the user experience? When your users find mobile pay to be quick and easy, they will by more readily and come back to your app because shopping is enjoyable and hassle-free. Using the following tactics, you can quickly improve user experiences and boost your mobile pay purchases.

  • Broadcast Which Mobile Payments You Accept
    • Let your users know which mobile payments you can accept. Choose big names in your region like Apple Pay, PayPal, CashApp, and Venmo. The more mobile payment options you offer, the larger your audience. At the same time, showing that you accept these payment types up front will tell shoppers that check out will be simple and fast. This is especially important on product pages.

  • Provide a Quick-Checkout Button for Each Payment Gateway
    • In the user’s cart, they will have the option to go through a traditional checkout. However, you can give mobile payment users a Fast-Pass through checkout, which will make using mobile pay even more appealing.

  • Allow Customers to Connect Their Favorite Payment Method
    • Don’t just accept mobile payments. Also, save that connection. Allow your customers to connect their favorite mobile payment methods and market them as their primary payment choice. When they return for future checkouts, offer this payment method first.

  • Enable One-Click Checkouts Using Favored Mobile Payment
    • For any customer with mobile payment saved as their primary payment method, offer one-click checkouts for a perfectly seamless shopping experience.

Securing the Transactions for Your Customers

How can you offer better security for your customers who use mobile payments? One-click shopping is convenient, but it’s also high risk of just anyone can pick up their phone and start making purchases. There are two ways that work best to allow both streamlined checkouts and secure customer accounts.

Account Security

The first method, unsurprisingly, is account security. While checkout should be quick and easy, getting into your app after idle time should require some degree of identity verification. You may use facial recognition and fingerprint scanning, unique login puzzles, or other methods to ensure that only your customers get into their logged-in app.

Multi-Factor Authentication

In addition to account security measures, multi-factor authentication both during login and checkout can improve payment and purchase security overall. MFA requires users to confirm on a separate email address or device that they are themselves and not using a stolen password or phone. Often, it involves a one-time code sent to a tokenized address that only the real user would know or have acess to.

Analyzing and Improving Conversion Rates

Once you have implemented your first payment gateway for mobile payment access, your web and mobile app development company can start analyzing your success and making improvements. Consider how mobile pay flows with your current checkout process and how you can offer a more streamlined experience. Consider new ways to integrate both one-click purchasing and secure yet convenient account protections. 

Using analytics, you can identify bottlenecks, engagement points, and greater opportunities to create conversions within the mobile customer journey. For more eCommerce mobile development insights, contact us today.

Paresh Khandelwal is a PMP Certified seasoned Technical Project Manager at Practical Logix. With his exceptional quality of maintaining client relationships helps to strengthen the bond between our Clients and us. He has a business first mindset which in-turn leads to a keen eye for the budget and revenue and Quality control for the projects. Being a CSM he follows the agile methodology which is an asset to keep us in line with the current trends in Project Management, along with the traditional Waterfall model.

Leave a Reply

Your email address will not be published. Required fields are marked *

QA Automation Testing, Mobile App Development, application design and development, top software development company
May 18, 2023
QA Automation Testing in 2023: Pros and Cons of Outsourcing It

cloud application development, cloud application development services, cloud app development services, cloud app development company
May 26, 2023
Cloud Application Development: Ensuring Security and Compliance