14 Jan

Choosing the Best Payment Suites for Your Business

by Dea Deviana
Strategic Partnership at Midtrans

5192Views

Cashless or non-cash payments are commonly accepted nowadays - acceptance of payments using various types of cards and e-wallets has been the norm now in various establishments; from the grocery store next door to large supermarkets and malls. This is especially true for online transactions, most notably ever since the pandemic early this year.
 
Naturally, every business owner wants to provide the best payment options for their customers. However, we often encounter many businesses; both in offline and online landscapes, in the spirit of providing as many options as possible to their customers, decided to provide so many payment options including those that their customers might not be familiar with. Not just that this requires a substantial amount of resources (both talents and financial) to maintain, payment success rate might end up being lower as well due to choice fatigue experienced by the customers, causing abandoned payments.
 
Then, how do you find the best payment method for your customers?
 
To begin to answer these questions, business owners need to understand their business's target consumer in-depth profile & demography, such as:

1. Consumer age range,

2. The average basket size of your business’s transactions,

3. Nature of products / services being sold (whether they are daily consumption goods, etc)

4. Consumer demography (location, gender split, etc)

5. Consumers’ level of comfort in using technology

6. Marketing channels used, and customer purchasing habits.

 
Afterwards, business owners can determine the most suitable payment suites for your customers according to the advantages of each type of payment method. Details about the advantages of each online payment method can be found in the following article "Knowing 7 Online Payment Methods in Indonesia,".
 
In addition, it is also necessary to understand how each payment provider markets their products to their consumers to understand their main user’s demography. It’s also a good idea to analyze the promotional or marketing support provided by the  payment providers, whether it aligns with your business’s consumer profile. Last but not least, make sure that the transaction fee schema for each payment method is suitable for your business model. For example, a business with small average basket size and profit margin per transaction may benefit more with payment methods that use a percent (%) fee-based scheme rather than a fixed fee.
 
In conclusion, as a business owner, you don't necessarily have to provide 1001 payment methods to your consumers - carefully choosing the best and most suitable payment method for you and your customers can actually be the better strategy. A carefully curated payment suite strategy will actually provide a smoother customer payment journey and helps to increase the chances of your customers to complete the payment, which also means a boost in your successful payment rate.
 
If you want to learn more on how to choose payment methods that are suitable for your customers, don’t hesitate to contact our team further at sales@midtrans.com.