Have you ever gone to buy something online and discovered the checkout process is more complicated than trying to put together some flat pack furniture in the dark, blindfolded?

Did it make you think twice about going through with the purchase or at the very least becoming a repeat customer?

Don't make that mistake with your own eCommerce business! 

Making it easy for people to pay for your goods or services online is one of the key elements of a successful eCommerce set-up. One way to do this is to make the ordering, shipping and payment part of the customer journey as clear and smooth as possible. Having a range of payment options will widen your customer base by making it more likely that people will find their preferred payment method.

Let's look at the types of payment gateways for Shopify payments and whether you should be thinking about part pay options.

Shopify Payments: The Best Payment Gateways For eCommerce

Types Of Payment Gateways

There are a number of different ways that you can accept Shopify payments in your eCommerce store. We’ve listed the most common ones here, but keep in mind that some may be more suitable than others for your particular circumstances.

Shopify Payment Gateways:

Credit card - one of the most popular choices, a credit card payment works in the same way as it would in a bricks-and-mortar store. Your customers enter their credit card details and the money is taken from their card to be paid back to their bank at a later date.  

Bank transfer - this payment sees the customer move money from their bank account into your payment system. Depending on how this is set up, there can be a delay between the payment being made and the funds appearing in your account, so be mindful of this.

Digital wallets - this is a broad term which covers payment methods stored on a device - like Apple Pay or Google Pay. These methods are connected to the customer's bank account but can be used without a card. The money is drawn directly from their account into yours.

Third party providers - Companies like PayPal and Stripe offer another way to let customers pay you through their systems and then transfer the money to you. Be mindful that there are often fees involved with these transactions.

Choosing The Right Payment Gateway For Shopify Payments

When you are choosing which payment method (or methods) to offer on your site you should think about the following things:

• What demographic your target market is from and what sort of payment method they might use most often
• Whether you need to be able to accept payments from customers overseas or if you only sell in New Zealand
• What the fees are for the payment method and whether you are happy to pay them

Should You Use Afterpay Or LayBuy Option?

Afterpay and LayBuy are two popular options where customers can get their hands on their order before they have to pay for it in full. Instead, they pay in instalments usually over 4-6 weeks.

It is important to weigh up whether these payment options are suitable for your business. Here’s some things to think about:

The pros of Afterpay or LayBuy

• It can increase your sales because people feel like the products are more attainable when they are able to pay instalments.
• It can increase the value of sales because people are likely to put more in their shopping cart, than if they were paying for it all in one go.
• Customers are more likely to come back to your store for repeat purchases if they know they can access Afterpay or LayBuy as an option.

The cons of Afterpay or LayBuy

• The services charge a fee for using them which is in addition to any other fees you are paying to your payment gateways or banks.
• Fees are non-refundable even if the customer returns the goods to your store.
• The systems may need a bit of work to integrate with your eCommerce store which can be complicated if you aren't technically minded.
• Depending on the price of your products, by the time you've taken off the fees, it might not leave you much profit.

Integrate Your Payments With Xero For Easier Accounting

Xero is fab for small businesses. It makes it easier to keep track of your accounts, whether you do your own record-keeping or have a bookkeeper, and makes it easier for your accountant to file the relevant tax returns.

Adding a payment integration for your online store makes it even easier. Integrating your payments, automatically adds transactions to your Xero account which can be used for reconciliation and producing accurate reports. It keeps everything tidy and ensures nothing is missed.

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