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Marketplaces: What payment methods do sellers and customers prefer?

Marketplaces could be defined as a virtual shopping center. The difference is that, in this case, the mall instead of charging the seller a rent and expenses, it charges a monthly fee plus a commission on its sales. And these commissions can be really high, as is the case with Amazon, which charges its sellers up to 15% on sales as a commission.

 

Knowing this, it is easy to understand why the payment methods offered by the giant marketplace are limited: the cheapest in terms of commissions and the most popular among consumers, since the commission of the payment platform must be added to the commission on the sales, as we’ve seen.

However, each marketplace has totally different prices, for example Ebay commissions on the seller do not exceed 7%. And these are just two of the most popular examples, but in recent years the number of online marketplaces has multiplied rapidly. And not in vain, because during the pandemic the best established platforms have grown to 100%, 200% or more. Without a doubt, it is a business model that really works today.

 

So how do you choose payment methods when launching a marketplace? It will be necessary to take into account the preferences of the sellers and, above all, those of the buyers, since are them who are going to make use of the payment gateway.

 

What payment methods do sellers in a marketplace prefer?

 

The short answer is: those that cost them a lower commission and improve their conversion rate. Without a doubt, payment by credit card is mandatory, since it is the one preferred by customers and (depending on the provider) one of those with the lowest commissions.

And the improvement of the conversion ratio can occur in different ways, the main one is to give the customer a payment method that they trust. Undoubtedly, it is also important to choose a payment gateway that is integrated within the same web to give greater confidence to the buyer, and also using alternative payment methods such as MoTo, which allow to recover abandoned carts and potentially save sales that were considered lost.

 

What payment methods do marketplace customers prefer?

 

The short answer is: the more options to choose from, the better. Because while it is true that the percentage of cyber shoppers who are reluctant to enter their card payment details is decreasing, it is also true that this type of user continues to exist and that due to the pandemic, new inexperienced buyers have appeared and they also fit that profile.

 

But not only that, new payment methods appear every day that have the option of becoming the favorites of some sectors of the population and that should not be left aside, as is the case with Bizum or even cryptocurrency.

 

 

At PaynoPain we are experts in online payment methods and we have all the tools to provide our customers’ marketplaces with the favorite payment methods of the Spanish and European, in addition to offering the best anti-fraud security measures and a control panel that facilitates the control of all transactions and business expansion.

 

 

Find out without obligation about our payment methods for marketplaces:

 

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    What trends in payment methods will emerge in 2021?

    The pandemic has accelerated the digital plans of most companies, reaching digital transformation plans that were initially going to take years to be carried out in a few months. Ecommerce has been strengthened by the pandemic and the online sales channel has become the main one for many businesses. But this is not the only trend in means of purchase and payment that COVID-19 has brought, several more have already been detected and their moment of consolidation will be in 2021.

     

    PSD2, payment initiation and a-commerce

    There is an event that many have forgotten but that will condition the world of online payments as much or more than the pandemic: the entry into force of PSD2. From the end of 2020 the authentication of the online buyer must be reinforced, but there will be a way to be able to make recurring charges, necessary for a-commerce (automated commerce), without the user having to identify himself each time or, at least, in a much faster way: the initiation of payments.

     

    And a trend that will inevitably be associated with double authentication is going to be the use of biometric features for the approval of payments. A touch with the fingerprint, the scan of the iris or the facial features will serve as confirmation to complete the payment quickly and safely for the user.

     

    Unified Commerce

    With the widespread digital leap that we are experiencing, the next logical step towards efficiency is to integrate all sales channels to offer a better customer experience, avoid duplication and optimize costs. To take this fundamental step, there are different technologies that will help businesses to centralize their sales, such as a payment gateway that works both offline and online but also includes social selling or apps and unifies all charges, data collection and statistics. Also, card tokenization will guarantee the security of payment data even in multi-channel mode.

     

    Ewallet and loyalty apps

    Although cashless payments have skyrocketed, the possibility of reducing intermediaries and that the customer can pay directly in a business’s own app is even more interesting. This is especially interesting for restaurants and cafes or companies that require great loyalty efforts, such as gas stations and service stations. Creating your own app serves to open a direct communication channel with the customer, it allows him to adopt the power to complete the entire purchase process practically independently and, in addition, it can include loyalty tools such as point cards or discount coupons . A wide range of possibilities that the pandemic has made much more necessary and that will begin to become popular from 2021.

     

    At PaynoPain we are experts in online payments and we are helping many Spanish and international companies to comply with the regulations and start working with the payment tools that we have seen.

     

    Find out how we can help your company to digitize and enjoy a more efficient payment system:

     

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      Management of online payments in SMEs and micro-enterprises: what is the best solution?

      A fact that is often talked about in Spain is that most of the Spanish businesses are small and medium-sized companies, but the truth is that the figure is even higher than many might imagine: according to the report ‘Entrepreneurship at Glance 2017‘ by the OECD, about 95% of Spanish companies are micro-SMEs, that is, with less than 10 employees.

       

      This is information that B2B service providers do not always take into account despite its importance, since these types of companies will have specific needs that have nothing to do with those of large companies or multinationals.

       

      At PaynoPain we provide payment services to companies of all sizes, but many of our clients are SMEs and micro-enterprises, for this reason we have managed to create the perfect products and customer experience for these types of companies. These are some of its main features:

       

      – Fair prices, proportional to sales: obviously a small company cannot afford the same costs than a large one, in the same way that revenues will not be the same either. For this reason, the commissions of our payment services are proportional to the sales and economic capacity of each company, always adjusting them as much as possible to maximize their benefits.

       

      – Easy and guided integration system: our payment gateway has plugins to integrate with most online sales platforms without any effort, in addition our support team offers constant support for the peace of mind of our clients.

       

      – Close and efficient customer service: we know that offering optimal service to your customers at all times is the most important thing for both large and small companies, for that reason our 24/7 customer service solves quickly and with a close and personalized treatment any problem that may arise.

       

      – Own security tools: small companies cannot afford to have an infinity of providers for different needs, which is why it is especially useful that our payment gateway has different security and trust-building tools for customers, such as 3D Secure or our own anti-fraud system. These tools protect both buyers and the online store from possible fraud attempts, the use of stolen cards or data theft.

       

      As we have seen, SMEs and micro-enterprises are the business base of Spain and it is essential that their management of online payments is simple and fluid for the convenience of all citizens. And with this objective we work at PaynoPain innovating in payment technologies and now also in financial services.

       

      Whether you want to integrate our payment gateway into your physical and/or virtual business or if you want to explore other ways of collaboration, write to us without any obligation and we will be happy to answer all your questions.

       

      TELL US ABOUT YOUR NEEDS:

       

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        Tourism businesses can find in eCommerce an important ally for the revival of the sector

        • PaynoPain summarizes in 5 the keys to having a secure, fast and easy-to-use e-commerce, which is essential to ‘return to normality’ in the tourism sector. 
        • PaynoPain recommends offering multi-device payment experiences, in which the users can choose the way to make the transaction and the currency that best suits their needs, and feel total security and confidence when making the transaction.

         

        The coronavirus has altered the vacation plans of many this summer: only 32% of Spaniards who had made plans keep them intact after the pandemic, according to SocioMétrica. The fear of contagion and the gradual opening of borders slow down the return to normality of a sector that, if in 2019 it contributed 153.9 billion euros to the GDP of Spain’s economy, Exceltur’s forecasts are that this year its contribution  will barely exceed 70,700 million euros, the worst figure since 1999. Apart from the protection and hygiene measures, PaynoPain, a Spanish technology company specialized in the development of online payment tools, recommends that tourism operators opt for ecommerce as an ally to recover the figures prior to the pandemic.

         

        “Although it is true that travel agencies and operators are, within the tourism sector, the most advanced in the adoption and use of electronic commerce – proof of this is that they generated 16% of the 11,999 million euros that they invoiced e-commerce in Spain in the second quarter of 2019, according to the CNMC-, there is still room for improvement that can be vital for recovery, ”says Jordi Nebot, CEO and co-founder of PaynoPain.

        This way, PaynoPain recommends that those who have not yet started their journey in the online world, do it as soon as possible, since 72% of Spaniards already prefer to pay and book trips online, according to Cetelem data. The advice for those that already sell online,  is to check if their online sales systems include the following options:

         

        1. 100% safe. Overcoming the fear of being scammed is still the main obstacle for a website visitor to end up becoming a customer. The best formula to guarantee security to the user and give them confidence is to comply with all the PCI regulations, the also mandatory PSD2 with its corresponding 3D Secure authentications and add extra layers of security as an intelligent anti-fraud system.
        2. Multi platform. Currently, the computer is giving way to mobile devices such as smartphones and tablets when hiring and paying for vacations online, so it is important to have a multiplatform sales system. In this way, it will be possible to increase the conversion ratio and maximize sales opportunities.
        3. Cards tokenization. The debit or credit card continues to be the favourite means of payment for customers, so ensuring that the user’s sensitive data is safe from any possible fraudulent use is essential. The fact of having a payment gateway capable of tokenizing card payment data in a completely indecipherable code is the best guarantee, also for the service provider since, thanks to this technology, they can check security data before executing the reservation, for example, verifying if it has been stolen or has enough money, and minimize any scam attempt.
        4. Variety of online payment methods. It is important to consider a wide range of options so customers can find the one that best suits their needs or preferences. Thus, for example, it is interesting that the operator has a payment service that includes payment by link with 3D Secure and even IVR (Interactive Voice Response), to guarantee efficient and very secure remote charging to customers who prefer book by email and phone, respectively.
        5. Multicurrency and digital means of exchange. The Internet opens the business to the world. For this reason, it is important to have an automatic currency conversion system, which makes it easier for foreign customers to pay with their currency. With this, not only it is possible to optimize the conversion ratio but also to offer a better online booking and payment experience. It is also convenient to open up to the use of digital currencies or cryptocurrencies as a payment method.

        “Today it is no longer enough to be on the Internet. Businesses have to create safe, convenient and fast shopping experiences for the user. Offering dream destinations and vacations for a population eager to forget about the months of confinement and facilitate online booking and payment anytime, anywhere, regardless of device and method of payment, can be key for the recovering of the sector. That is why we create personalized shopping experiences with the business brand to build trust. In these times it is what the customer needs the most”, says Nebot.

        PaynoPain has a specific payment gateway service for the tourism sector, Paylands, which includes all the aforementioned benefits and, in addition, a fraud monitoring tool, which shields consumer information and the operations they carry out.

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        Shopping trends after coronavirus pandemic: How do consumers prefer to buy and pay?

        With the state of alarm and the confinement over in Spain and other countries, many might think that we will return to normality, but everything indicates that the post-coronavirus era will be very different from the previous one. Many areas of daily life have been affected, such as work methodologies or behaviors when it comes to socializing and also consuming.

        The new normality has a new type of consumer, the post-coronavirus consumers have changed their habits and consumption patterns during confinement and many of them will stay. The fear of catching the disease and the comfort discovered with alternative purchasing methods have led to the emergence of a new post-coronavirus consumer profile, which has already been attributed a series of very specific characteristics. Let’s see them:

         

        Post-coronavirus consumer is more attentive to promotions and offers

        The purchasing power of consumers has dropped during confinement. Although they have not left home and have barely spent money, millions of Spaniards have lost their source of income or have had to subsist without a job. It is for this reason that many non-essential sectors have noticed a drop in demand and that the consumer has begun to look at prices with a magnifying glass and to value any promotion or offer that helps them save a few euros, and this trend will continue, at least , as long as the economic situation is not the same as it was before the crisis.

         

        Post-coronavirus consumers buy much more online

        During confinement, the closure of most stores forced consumers to try online shopping. And not surprisingly, online sales have increased their results by 55% on average during the months of alarm and today (with all physical businesses already open) accounts for a third of total transactions in Western Europe. This has led many local producers and stores to digitize their business and have a greater online presence, and those who have not yet done so, have had to find alternative payment solutions such as link payment.

         

        Post-coronavirus consumer chooses larger, infrequent purchases

        Closely related to the habits we’ve seen above are the largest but infrequent purchases. This online purchase mode allows you to get better promotions and offers, save shipping costs and minimize the number of times the purchase process must be repeated.

        And there is another related trend: the rise is the automated or subscription purchase, which consists of choosing a frequency in which certain products will come home and automate it so that you do not have to go through the payment process again. Many virtual businesses reward this type of purchase with discounts, which perfectly fits the interests of the company but also of the post-coronavirus consumers’.

         

        Post-coronavirus consumer chooses innovative payment solutions

        The cash withdrawal in Spain fell 68% during the month of March, at the beginning of the confinement. Interestingly, this has been the first crisis in which the demand for cash has decreased rather than increased. The fear of contagion has made online and contactless payment methods flourish, allowing zero contact and guaranteeing greater security. But at the same time, they are faster, more comfortable and safer payment methods, due to which everything points to the fact that the post-coronavirus consumers will continue to tend to prefer them over cash.

         

        At PaynoPain we implement the necessary technology in any type of business so that it can adapt to the needs of the new post-coronavirus consumers in a simple, economic and fast way. Our Paylands payment gateway allows to respond to all the payment needs of users, in addition to many other advantages for the company.

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        It is time to retain new online customers

        E-Commerce has had 55% growth in the last two months due to the closure of shops, which has meant the arrival of many new customers to online stores. Doubtlessly, it’s a unique situation that must be strengthened, achieving new customer loyalty and improving long-term results. If this is your case and you are looking for a way to retain your new customers as soon as possible, we bring you the most important strategies that you can do to achieve it:

        1- Establish feedback with the customer

        We must provide the customers with useful tools  and communication channels to transmit their opinions and experiences with our product. Both positive and negative reviews help us to keep improving. In this way, the client will feel valued and increase his confidence and comfort in front of our brand, at the same time that we get information to resolve mistakes and improve our service. It’s very important to offer quality customers service which is actually effective helping customers. 

        2- Increase your presence on social networks

        Increasing engagement is most important to improve online clients loyalty. It provides us the opportunity to show the human side of the brand, getting closer to the customers and their social environment. Social networks are not only an indispensable tool for instant and massive communication and promotion, but also an effective method to retain clients through own content which encourage interaction or causes emotional stimuli in the online community. In addition, it allows to improve both the recognition and the image of the brand.

        3- Offer discounts and personalized offers.

        Discounts and offers stimulate the purchasing action of our products. Through this loyalty strategy we facilitate the consumption of the “associated products” for clients., at the same time that we get them to have better knowledge of our website. Recommending, offering and providing discounts to customers in concrete products based on previous purchases will help us to stimulate the purchase in our lines products. Also, launching giveaways and gifts to reward your brand loyalty is an effective strategy to build customer loyalty.

        4- Safe and comfortable shopping experience. 

        In a time when scams and data theft are very present on the network, the customers feel defenseless in internet, so our website must inspire confidence and security by the time the customers are going to introduce a sensitive data. Therefore, a payment gateway that inspires confidence and security is an indispensable tool to retain online customers. 

        In order to help you in your objective, in PaynoPain we have Paylands, our payment gateway which helps in improving customers’ loyalty thanks to a quick and easy payment process and the large number of security tools that it includes.  

        Do not doubt to contact us for more information.

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        What role will online payments play in the new post-COVID-19 normality?

        The health crisis caused by COVID-19 has triggered numerous economic and social changes that, in all likelihood, will largely remain in the new postcoronavirus normality. As we have talked about several times lately, businesses that didn’t previously have an online presence have been forced to virtualize in order to continue offering service to the confined population and not having significant economic losses.

         

        For their part, those businesses that didn’t have an online store or the possibility of creating one at the moment, have found an intermediate solution in our pay-by-link service, through which their customers have been able to order and pay by contacting them directly by different online channels. Ultimately, it’s a way to take the digital leap with minimal investment, an affordable option for any business.

         

        As expected, during the confinement online purchases are estimated to have increased by 55%, being the only way to continue providing goods to citizens while maintaining social distancing and security measures established by the authorities. But it’s also anticipated that this number will never return to what it was before quarantine, initially for fear of contagion and, in the long term, for the total acquisition of the new buying habit.

         

        On the other hand, businesses that have been able to remain open, such as supermarkets and grocery stores, have seen the use of card and contactless payments increase significantly, due to consumers’ fear of using cash because of its large bacteria transmission capacity (not viruses). Not surprisingly, the cash withdrawal fell 68% in March. Contactless payments have been especially favored by the bank’s decision to increase the payment limit hereby from € 20 to € 50 without the need to insert the pin into the dataphone. This decision has been given by the recommendation of the European Banking Authority, with the aim of avoiding physical contact with the terminals as much as possible and thus reducing the possibility of contagion.

         

        All these measures and new habits acquired reaffirm a trend that had been going on for years, the trend towards the total digitization of payments and the residual use of cash. And, although the classic means of payment will rarely disappear, the truth is that giving the maximum possible payment options to the customer is today as the only way to avoid losing sales. For this reason, at PaynoPain we work to create innovative, very secure payment methods that meet all needs.

         

        Sources: Ecommerce News, Europapress

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        How to sell more than ever on Black Friday and Cyber ​​Monday

        Last year we already showed you the importance of your payment gateway during Black Friday and similar dates in which a great sales peak is expected. And this year we are going to focus on marketing strategies that have proven to work especially well in these important days for online stores. Get ready to sell more than ever on Black Friday and Cyber ​​Monday!

        We will assume that you already know well the best practices that get more sales nowadays: free shipping and returns, offer the highest possible discount, do marketing campaigns in Google Ads and social networks, send mailings to your customer bases… But, just in case, here you will find several posts with different strategies to consider to improve sales results:

         

         

        But focusing on Black Friday and Cyber ​​monday, which are the dates that most worry these days, we will see some important tips to sell more than ever and that are not usually taken into account:

         

        Prepare your website (and not just the offers)

         

        Not all online businesses take into account that higher sales also means more traffic on your website and higher chances of running out of stock. Therefore, it is important to anticipate possible problems and write specific terms and conditions these dates, that are accessible from the website and that take into account any possible user complaints.

        Slow website, lack of stock or delays in shipments are the most common problems, but the more scenarios contemplate the terms and conditions, the more headaches you will save.

         

        Differentiate discounts for each day: flash deals

         

        Every year more online businesses decide to join the whole Black Friday’s and Cyber ​​Monday’s Black Week. This means starting to make discounts from the first Monday of the week (this year on November 25) and to Cyber ​​Monday itself (this year on December 2). And something that is very effective to take advantage of this week of offers and further improve sales is to differentiate discounts by days and make flash offers, as they create the feeling of urgency and reduce the amount of abandoned carts.

        So, you can choose a range of products to be on sale on Monday, another on Tuesday, another on Wednesday … And Black Friday itself and Cybermonday put more products on offer. But this is only one option: the possibilities are unlimited and you know better than anyone what can work for your business. And, of course, you must announce these flash discounts on the website, in mailings to customers, in social networks and in Google advertising, if not, it will do almost no good.

         

        Create specific campaigns

         

        There are many people who weeks earlier already start looking for products that they want to buy accompanied by the words “black friday” or “cyber monday”. Creating a Google Ads or social media campaign with these keywords and showing juicy discounts either in text or image format is a very interesting idea.

        You want to be the first result of these searches and the most eye-catching, so do not skimp on advertising, because if you reach your target audience and the discounts are worth it, the benefits will undoubtedly far outweigh the advertising investment.

         

        Use tools to create a sense of urgency

         

        There are countless tools that favor the visitor to complete the purchase process, such as complete descriptions, free shipments, verified opinions or having a payment gateway with a quick purchase process.

        But in these important days the competition is more voracious than ever, so you need to make sure that your visitors feel the need to buy in your online store and not in others, and that they do so as quickly as possible. For this there are tools that generate a sense of urgency, such as putting a counter of the items in stock or a countdown of the time left for each offer to end.

        As you will see, there are a lot of strategies to sell more these Black Friday and Cyber ​​Monday. If you follow these instructions and review the posts we have recommended, you will surely improve the results, and if you need a payment technology that favors sales while gaining security, do not hesitate to contact us.

         

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