🟢 How BNPL and Digital Wallets Are Shaping the Future of eCommerce Sales 💳

BNPL is becoming a new way of finance now.

🔸 83% of merchants consider the availability of payment methods as a key factor when choosing a payment processor, and 63% would switch processors if certain payment options were unavailable.

🔸 Digital wallets are widely adopted, with 96% of merchants accepting PayPal, 84% accepting Apple Pay, and 80% accepting Google Pay. In contrast, only 36% offer Buy Now, Pay Later (BNPL).

🔸 BNPL adoption varies significantly by revenue: 55% of firms earning over $100M offer BNPL, compared to just 33$25M.

🔸 Offering alternative payment methods boosts eCommerce sales. 97% of merchants earning under $25M reported increased sales after adding these methods.

🔸 Small merchants experience the most significant conversion rate improvements, with offering alternative payments being 36% more effective than subscriptions and 73% more effective than guest checkout.

🔸 Security concerns dominate processor-switching decisions, with 67% of merchants citing security issues as the primary reason to leave a processor.

🔸 The ease of use and convenience of alternative payment methods drive adoption: 75% of merchants highlight this benefit for Apple Pay, and 93% find PayPal popular among customers.

🔸 Merchants generating less than $25M offer an average of 5.9 payment methods, compared to 6.8 methods offered by those generating over$100M.

🔸 88% of merchants report that adopting alternative payments positively impacted their eCommerce performance, underscoring its importance.

🔸 High costs (49%) and the time required for implementation (59%) are major barriers to switching payment processors.

🔸 Merchants are 2.4 times more likely to choose PayPal over other digital wallets due to its popularity among consumers.

🔸 Small merchants, who highly value customer support and payment method availability, need tailored solutions from processors to stay competitive.

🔸 BNPL’s popularity among consumers is noted as a key benefit by 93% of large merchants compared to 44% of small merchants.

🔸 Fast payment processing is crucial: 86% of merchants consider credit card transactions the fastest for settlement, followed by PayPal at 82%.

🔸 Processors need to simplify the switching process and demonstrate long-term benefits to overcome merchants’ reluctance to change providers.

Author

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