Offering multiple payment choices increases conversion rates for e-commerce sites

eMarketer and Internet Retailer published articles on the findings of a survey conducted by CyberSource which focuses on the impact multiple forms of online payment has on the conversion rate of e-commerce sites.

The survey found that shopping cart abandonment rates decline along with increases in the number of offered payment methods. Shopping cart abandonment for survey respondents offering only one payment method was 40%. The rate dropped to 34% for retailers offering two payment methods, 29% for those with three and 28% for those with four or more.

The most popular payment methods, according to the survey, are the general purpose credit cards like Visa and MasterCard, followed by gift certificates. 53% of the surveyed e-retailers offer only one or two methods of payment.

Offer credit card alternatives

Offering an alternative to credit card payment like PayPal or Bill Me Later improves the chances for successful e-commerce experience for those online shoppers who are not willing yet to share their credit card details with the e-merchant.