When you think about optimizing your online store for sales, one of the first things you would need to consider is introducing the payment methods your customers would use. In this article, we will discuss 5 reasons why you should start accepting mobile payment methods on your e-commerce store.
1. Mobile payments are growing in popularity
Just a few years ago, credit cards were used in 70% online payments, and the second most popular method was cash on delivery (20%). Nowadays the situation looks different: while credit cards are still the number one online payment method in Japan, their popularity dropped by more than 10%. Konbini payments, carrier billing, and mobile payments are increasing in popularity every year, and with the Japanese government initiatives to increase the amount of cashless payments everywhere, it is predicted that the market size of mobile payments will increase twice in 2023 compared to 2020, which will affect the online payment industry as well.
2. Mobile payments help decrease cart abandonment rate
Japan is in the top 10 countries with the largest number of smartphone users, and according to Nielsen Digital Consumer Database in 2019 there were more people who used their smartphone instead of a computer not only to research information about the product, but also to make a purchase. However, in more than 70% cases shoppers abandon the cart, often because they didn’t have their credit card handy or couldn’t trust the website with the credit card information. Mobile payments take out this extra step between a customer taking an interest in your product and making a purchase.
3. You reach a larger audience
In Japan, a country where cash still dominates the market, credit cards are associated with a certain risk, and many shoppers are reluctant to use them while purchasing online. On the other hand, the younger generation, which is always quick to adapt everything new, doesn’t even own credit cards and is left with a lesser choice of payment options. By introducing mobile payments, you reach an audience that prefers to not use credit cards.
4. There are no extra fees for customers
A reasonable question to ask here is how are mobile payments compared to other alternative payment methods, such as konbini payments, cash on delivery or bank transfer. The last two methods usually require bigger fees that have to be covered by a customer, while convenient store payment can never be as convenient as a phone you already have in your hands.
5. Your customers can collect rewards
It is in every mobile payment provider’s interest to make their service as attractive for customers as possible. For example, PayPay, the most popular mobile payment service, has a great point system, and customers can use points from offline for online purchases. Merpay allows customers to use their sales from Mercari to shop online, and LINE Pay lets customers collect rewards after joining LINE Point Club. Moreover, if you are already using LINE to connect with customers, you might see an increase in purchases after introducing LINE Pay, as the customer journey will be a lot smoother.