The “pain of paying” is a well-understood concept within behavioral economics. Customers love buying products and services, but they don’t enjoy the actual process of handing over money.
This is why casinos use chips and many businesses use credit cards. These monetary substitutes help to mitigate loss aversion and direct the user’s focus on the actual value received.
Yet, by making payment processing easier, faster and more secure, you can reduce the pain of paying even more. That way, your customers will remember the experience — and not the annoying invoice.
Below are some tips to get you started.
1. Invest in Payment Security
Credit card fraud affects everyone — including your customers. This is why it’s worth investing in secure payment processing. Doing so helps make the shopping experience as worry-free as possible.
Common strategies to improve payment security include:
- PCI-compliant processing
- Data tokenization
- Point-to-point encryption (P2PE)
- Fraud management filters
- EMV credit card processing
2. Make Payments Faster
Waiting in line at the cash register is never fun. However, you can speed up the queue by implementing Apple Pay — a convenient payment option that allows customers to wave their phones across a reader instead of swiping traditional credit cards.
You can further speed up this process by using mobile payments. Your cashiers can roam throughout the store and process credit card payments securely through POS-enabled smart devices.
3. Offer Payment Variety
Different customers prefer using different payment methods, and it’s impossible to guess these preferences in advance. Though by expanding the number of payment options you accept, you no longer have to guess.
In addition to cash, credit and debit cards, you may want to consider accepting ACH, Apple Pay, or PayPal.
4. Use Recurring Billing
Want to reduce the pain of paying as much as possible? Make all future payments automatic with recurring billing. Your customers will never have to “think” about another invoice again. The money is instantly deducted from their account whenever the next bill is due. By using an account updater service with your recurring payments schedule, you’ll reduce declines for cards that expire, are replaced or upgraded. The service works seamlessly in the background to keep your customers’ payment information current and reduce the risk of lost revenue.
Merchant-Side Benefits of “Painless Payments”
By implementing the strategies above, it becomes much easier to keep your customers satisfied — and happy shoppers are always good for business.
You also benefit in other ways:
- Better security means less time disputing fraudulent charges
- Easier payments allow you to make more sales per unit of time.
- Payment variety lets you generate more sales across the board.
- Recurring billing can dramatically boost customer retention.
Thanks to payment integration, it’s possible to bring all of these features under one umbrella. As you continue generating new sales, those transactions are automatically reflected in the accounting, tax prep and CRM tools you already use.
The Future of Convenient Payment Processing
The payment landscape continues to evolve rapidly. No one knows for certain what the future holds, but the general trend suggests that consumers increasingly expect their shopping experiences to become more secure, more convenient and faster over time.