What payment methods should you offer in an online store?

The variety of payment methods available in an online store is one of the most important factors that determine the success of an online store. Payment options are a critical part of the customer experience and can determine whether a customer ends up making a purchase or abandoning their shopping cart at the last minute.

The importance of payment methods is especially emphasized when competition between online stores is fierce. When a customer finds the product they want, the purchase decision can be ruined by the missing payment method. According to research, up to 6 out of 10 customers abandon their shopping cart if their preferred payment method is not available.

The choice of payment methods also affects the internationalization of online shopping. Different markets favor different payment methods, so an online store targeting international markets must take into account the payment practices of the target markets. An online shopping platform like Shopify allows for easy integration of different payment methods, which makes expanding your store to different markets smoother.

What are the payment methods preferred by Finns when shopping online?

Finnish consumers particularly prefer secure and fast payment methods for their online purchases. Online banking payments are still one of the most popular payment methods in Finland, as they are perceived as reliable and easy to use.

However, there are clear differences in the use of payment methods between different age groups:

• Young adults (18-35 years old) prefer mobile payments such as MobilePay and credit cards
• Middle-aged people (36-55 years old) most often use online banking and credit cards
• Older age groups (56+) prefer invoice and online banking payments

The price of the products you buy also influences the choice of payment method. For cheaper purchases, online banking and mobile payments are preferred because of their speed. For more expensive products, installment payments and credit cards are becoming more popular, as they allow you to spread the costs over a longer period of time.

A special feature of Finnish consumers is their strong trust in domestic payment intermediaries. Services such as Klarna, Paytrail and Checkout Finland have achieved a solid position in the market and offering them in online stores increases trust in the eyes of customers.

How do payment methods affect online store conversion?

The choice of payment methods and their user experience significantly affect the conversion rate of an online store. Cart abandonment is most common at the checkout stage, and is most often caused by the lack of a suitable payment method or a complicated checkout process.

Key factors in conversion optimization include:

• Coverage of payment options: Offer at least 3-5 different payment methods familiar to Finns
• Smooth checkout process: The fewer clicks, the more likely the customer is to complete the purchase
• Mobile-Friendly: Ensure that the payment process works seamlessly on mobile devices
• A sense of security: Clearly display security certificates and familiar payment service logos

Offering a variety of payment options not only improves conversions, but can also increase the average purchase size. Offering installment and credit options can encourage customers to purchase more expensive products or larger quantities, as the costs are spread over a longer period of time.

Optimizing the payment process is an ongoing process. Regular analysis of online store payment data helps identify which payment methods are most popular across different customer groups and product categories, enabling continuous improvement of the payment process.

Choosing payment methods for online shopping: summary and recommendations

When choosing payment methods for your online store, it's a good idea to take a balanced approach that takes into account both customer needs and business realities. For online stores operating on the Shopify platform, we recommend the following set of payment methods:

• Online banking payments (all Finnish banks)
• Credit cards (Visa, Mastercard)
• Mobile payments (MobilePay)
• Invoice and installment services (Klarna, AfterPay)
• Digital wallets (PayPal, Apple Pay, Google Pay)

Integrating payment methods into the Shopify platform is technically simple, but it's worth considering the cost structure. Payment processors usually charge transaction fees, which directly affect the profitability of your store. It's often most cost-effective to choose a provider that allows you to use most payment methods through a single integration.

Future payment trends include the growth of mobile payments, biometric authentication, and cryptocurrencies. Following these trends and maintaining readiness to adopt new payment methods is important to remain competitive.

When choosing payment methods, consider your target audience – digital and mobile payments are important for younger customers, while traditional payment methods are often more preferable for older age groups. Ultimately, the success of your online store depends on how well you can offer your customers the products they want and enable them to buy in the most natural way.