With an increasing number of consumers shying away from credit cards, more and more companies are investigating alternative payment systems. Not only do such payment options reduce or eliminate merchant fees, but they also increase sales. Indeed, a recent study by CyberSource Corp. showed that consumers complete purchases 14% more often when a retailer offers three or more types of payment instead of one or two.
We’ve written about Bill Me Later and eBillMe in previous posts. While both these have been around for a few years, the credit crunch is spawning more options all the time. Three that have launched in just the last few months are Moneta, Mazooma and Secure Check by Noca Inc. Merchant fees, if any, are a fraction of typical credit card processing fees.
While you may not want to be the first to hop on the bandwagon with a brand new system, offering alternative payment options is clearly a trend that’s here to stay.