Different Payment Methods on Shopify and How to Set Them Up
What’s the very first thing you look for on an online store when making a purchase? The payment modes it has to offer. While some of us prefer online banking, there are also those who’d rather choose cash on delivery for their orders. But as a store owner, how do you ensure that you’re catering to all types of customers and their payment preferences? Well, according to several studies, having multiple payment options on your store can boost your conversions by 71%. But imagine having to tie up with different banks or set up different payment gateways manually. Tiring, overwhelming and you’re sure to make mistakes. That’s why we at Shopify have made things as easy as plug-and-play. Before we dive into how you can set up multiple payment modes on your store, let’s take a quick look at what payment methods consumers usually seek.
What are the different types of payment modes?
Seems like a lot of things to implement? Well, if your store is on Shopify, it’s easy to offer them all.
Here’s how! How to set up multiple payment methods on your Shopify store?
1. Enabling netbanking/ debit card/ credit card/ UPI
To make it easier for you to offer multiple payment options to your customers, majority of payment gateway partners in India like PayU, RazorPay, CCAvenue, Paytm, Cashfree and others have built one-click integrations with Shopify. All the payment gateway providers support majority payment methods like credit card, debit card, UPI and netbanking. You can check all our payment gateways here. To enable a third party payment providers (Cashfree, Stripe, PayPal), you need to:
Go to Settings -> Payments
Head over to Third Party Providers
Click Choose third-party provider
Select the provider that you want to use from the list
Enter your payment gateway account credentials for the provider that you selected
To enable alternative payment providers (PayU, RazorPay, Paytm), you need to:
Go to Settings -> Payments
In the Alternative Payments section, click Choose alternative payment
Choose a provider from the list shown
Enter your payment gateway account credentials for the provider you chose
Click Activate to enable the provider
2. Setting up cash on delivery
To let you easily enable and offer cash on delivery on your Shopify store, we have developed an app called Advanced Cash on Delivery. The app gives you more control over how and when your customers can use Cash on Delivery as a payment method, which pincodes cash on delivery is available on, the minimum value for which the payment method can be chosen and configuring COD fees. You can also upload postal codes of areas where you offer cash on delivery, add a snippet to your online store theme to let customers check if COD is available in their location.
Enabling cash on delivery in your store is easy. Your store comes with the Advanced Cash on Delivery app pre-installed. All you need to do is configure the cash on delivery app to leverage all its features.
To enable cash on delivery manually Alternatively, you also have the option to set up cash on delivery manually on your Shopify store. This might take you a little longer than using the app as it involves a series of steps. Here’s what you need to:
Go to Setting -> Payments from your Shopify admin
In the Payment providers section, select Manual Cash on Delivery
Go to Additional details to enter any information you want to display next to the payment method
Add Payment instructions for the customer to follow to pay for an order
If you’re activating cash on delivery manually on your Shopify store, we recommend going through these instructions carefully: Setting up cash on delivery manually.
4. Setting up buy now, pay later
If you sell wholesale products or high-value items or typically see a high average order value on your Shopify store, you can consider letting your buyers pay for their purchases later using easy instalments. For Indian buyers, you can do this easily using Sezzle. But to do so, you will have to set up an alternate payment gateway for the same. Here are the steps to follow:
From Shopify admin, go to Settings -> Payments
In the Alternate Payments section, click Choose alternative payment
Select Sezzle from the list
Enter your account credentials for Sezzle (you need to have a verified account on Sezzle)
Click Activate to enable the provider
Note: The app lets you enable 4 interest-free payments for customers over a period of six weeks. For customizations, please contact them.
5. Offering payments via wallets
Some of your buyers will choose to make payments using popular wallets such as PayTm, PhonePe, Freecharge, Mobikwik and other digital wallets. For this, you will have to ask the payment gateway provider you choose to enable those wallets for you. Shopify does not have direct integrations with these wallets. So to enable this, simply follow the following steps:
Choose a payment gateway provider (point 1)
Request the payment gateway provider to enable a digital wallet you want to use
Once enabled, you will be able to accept payments via the wallet
Why do you need to set up multiple payment modes?
Different consumers prefer different payment methods for making an online purchase. In most cases, if they do not see their preferred payment mode, they abandon the purchase and consider making the same from another store. Setting up multiple payment methods, as suggested above, will help you:
Increase conversion rates - When buyers see more payment options, they’re more likely to find one that suits their needs. This reduces their dwell time on the products added in the cart, leading them to complete the purchase. Multiple payment options are proven to improve conversions by 71%.
Reduce cart abandonment - If you have multiple payment options, you give more flexibility to the buyer while making a purchase. This helps reduce cart abandonment rates by at least 12%.
Improve customer satisfaction - Seeing multiple payment options on a store makes the customer feel ‘considered for’, which improves their overall shopping experience with your Shopify store.
Display brand credibility - A brand that has focused and made an effort to offer multiple payment methods is seen as credible and more established in the market.
Offer a hassle-free checkout experience - Not having to choose a payment method other than the one preferred, also improves the overall checkout experience on your store. It also reduces the cycle of having to find alternative payment methods on the consumer front.
How many payment methods do you need to set up on your store?
While Shopify offers the flexibility to offer as many payment methods as possible, it is important that you look into what your target customers are looking for. It is important to understand their purchase behavior and enable a payment mode that suits them the most. The closer you are to identifying what payment methods they’re comfortable with, the more likely they are to complete a purchase.
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