Balancing the books: How to manage your home finances

If demonetization was a preliminary event that pushed the nation towards digitization, COVID 19 acted as a major catalyst to attain this goal. With individuals staying indoors to maintain social distance, online mode became the best medium to complete various transactions like electricity/water bill payments, EMI repayments, premium payment etc. They are not just convenient but also make transactions faster and easier. Digital payments provide flexibility to make payments at anytime from anywhere. Also, it helps save time. While few businesses may use funds from their pocket to simplify their online transaction process, others can opt for business loans or working capital loans to meet this goal.

Check out four measures businesses must follow to ameliorate their payment process to enhance their consumer base:

  • Offer multiple payment methods

Many online platforms just offer a few specific payment methods. They usually select the ones with zero or least MDR (merchant discount rate). However, it will be fair to assume that consumers expect you to have various payment modes during the checkout time. To meet their expectation, you must research the preferred payment modes in your targeted region.

Payment methods like net banking, all major debit and credit cards, e-wallets and mobile phones can offer convenience to customers.

  • Allow payments without login or with minimal effort

Making customers compulsorily sign up for an account can cost you a sale. Allowing quick guest checkout can speed up the process.

However, if you do have a sign up process, propelling the target audience to follow complex processes is considered intrusive and may lower conversions. More fields you have in your sign-up page, the higher the risk you hold of losing out customers during the registration. Thus, you must work towards making the life of your potential buyers simpler by allowing them to sign up easily with minimal effort. Users must be permitted to sign up using their social media platforms or Gmail accounts.

  • Customize your check out page from branding point of view and ask only essential information

Check out design and customization are a major aspect your target audience may consider. Your page must be consistent in terms of font, design, color, on app and website to enhance brand recognition. Many audiences may doubt your brand, if your check out page is different from your brand home page. Thus, being consistent is important. However, it doesn’t mean you require complicating things on the design part. Having a consistent check out page even helps to build consumer trust and satisfaction.

Also, keep in mind that customers are likely to abandon their cart midway if they are required to fill in too much information and irrelevant details. So, make sure that customers only need to input essential information.

  • Make your website secure

Have and display a Secure Sockets Layer (SSL) certificate for your website to provide a secure connection and encrypt credit card information.

  • Avoid too many page redirections

When you work excessively hard to entice audiences to your site, you naturally will not want to send them to any other website to pay. It is one of the drawbacks of using payment services that often redirects consumers from a website to a different payment page. Re-directing them to a third-party payment website may erode trust.

As you lack control over the design and look of intermediate payment pages, few consumers may think they are paying to other businesses, which may lower trust. Thus, it is important for you to ensure an experience, which is redirection free for your consumers. It is possible if you select the correct payment gateway for your online business.

  • Have a clear call-to-action

Guide customers by giving a clear and specific call to action like ‘Continue to checkout’, ‘Add to cart’, etc. to avoid confusion.

Ending note

The above-mentioned ways can assist lower cart abandonment rate and ensure a hassle-free online payment process. Still, it is a prudent idea to examine what may work best for your company. In case of fund shortages, your company may avail mid or small business loans depending upon its size.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.