Introducing a new payment method to your checkout can unlock various benefits like increased conversions and reduced transaction fees. However, these benefits are only realized when your customers adopt and use the payment option! If Pay by Bank is to be effective, your customers need to choose it over other available options.
Maximizing adoption means encouraging more shoppers to choose Pay by Bank at checkout. This results in increased usage of the method, leading to lower fees, faster processing, and reduced dependency on traditional card schemes or other payment methods.
Although new payment methods often start slow, they can rapidly gain traction. In fact, 2 out of 3 consumers are open to using Pay by Bank, and a quarter of them already have. By increasing Pay by Bank adoption, merchants can enjoy reduced fees, improved cash flow, and a streamlined checkout experience.
Driving adoption requires action both before and after launching Pay by Bank at checkout. Here's how to approach both stages for maximum impact:
Before Pay by Bank goes live, it's essential to optimize the user experience to encourage customers to choose this payment method.
Ensure Pay by Bank is clearly labeled and accompanied by a simple description if needed. Icons representing trusted banks help reinforce security, while positioning Pay by Bank prominently in the checkout flow increases its chances of selection. For example, a "Recommended" tag or visual cues can steer customers toward this option.
With Open Banking, the heavy lifting is already taken care of, the payment flow is as simple and intuitive as possible. Merchants don’t need to worry about optimizing multiple steps; the process is already streamlined to minimize friction while ensuring customers feel secure and informed. A clear, seamless confirmation at the end of the transaction reinforces trust and leaves a lasting positive impression.
Ensure the payment experience is flawless on both mobile and desktop. On mobile, enable easy transitions from your site to the banking app and back. For desktop, offer the option to complete the payment process on a mobile device if necessary all depending on the 2FA authentication method.
Educating your customers is key to getting them on board with Pay by Bank. Before launching this new payment method, use emails, website banners, and social media to highlight the benefits of Pay by Bank. Make sure to emphasize its safety, as consumers rank security as one of the top factors in adopting new payment methods.
Once Pay by Bank is live, show it as a "recommended payment method” and continue educating shoppers through push notifications, in-app messages, and even an explanation in the FAQ page. Regular reminders will help create familiarity and encourage repeat usage.
Offering incentives can accelerate the adoption of Pay by Bank. For instance, you could offer extra loyalty points or discounts to customers who use Pay by Bank instead of other payment methods. The emotional appeal of saving or earning something additional encourages customers to give it a try.
However, remember that once customers are familiar with Pay by Bank, they’re likely to keep using it even without rewards. The inherent convenience and security of the payment method will drive continued usage.
Not all transactions go smoothly, and card payments may occasionally fail. Having Pay by Bank as a backup option can help recover those sales. It not only increases the likelihood of successful payments but also introduces Pay by Bank to users who may become repeat customers in the future. Also, another bonus Pay by Bank is chargeback free!
By strategically focusing on user experience, ongoing education, thoughtful incentives, and using Pay by Bank as a fallback option, merchants can maximize Pay by Bank adoption, driving both short-term success and long-term loyalty.
Want to learn more or get started? Contact us at: sales@alternativepayments.com
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