How to Choose the Right Payment Solution for Your Online Store

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How to Choose the Right Payment Solution for Your Online Store

Choosing a payment solution that fits your online store is essential to keep costs low, maintain a satisfactory conversion rate, and provide a great customer experience. There are several factors to consider when selecting a payment solution, including whether it can integrate with your e-commerce platform and is user-friendly for both you and your customers. Here, we’ll go through the key factors to help you choose the right payment solution for your online store.

How to Accept Payments on Your Online Store

You need something called a Payment Service Provider (PSP), also known as an acquirer, if you want to let your customers pay for goods and services using bank cards. You should consider whether you want to use a payment solution that includes card acquiring or if you prefer to use a third party to handle the payments.

In short, the acquirer is the entity that processes the payment and transfers the funds to your bank account. The payment provider acts as the link between the online store and the acquirer. Below, we’ll take a closer look at good payment providers that offer solutions with and without card acquiring.

Good Payment Options in Norway

Collector Bank, Dibs Easy, Klarna, and VIPPS are excellent payment options in Norway. They offer various solutions, including card payments, invoice payments, and complete checkout solutions that include invoice, card, and instalment plans. The advantage of the latter is that you generally don’t need third parties like card acquirers.

Collector Bank is a payment solution that offers invoicing for online shopping and is used by large online stores such as Boozt and Nelly. Dibs offers both invoicing and card payments, as well as a comprehensive solution called DIBS Easy. This allows you to easily accept both card and invoice payments without needing a separate agreement with third parties.

Klarna is a very popular option with its own checkout solution called Klarna Checkout. Customers can pay by card, invoice, or choose to pay in instalments through their Klarna account. You can also opt to use specific solutions like Klarna Invoice without replacing your entire checkout system. An acquiring agreement is included in Klarna Checkout, so you don’t need a third party to use the services.

Vipps is a great option for many online stores today. You can easily increase the conversion rate and user-friendliness by using this innovative and modern payment system. Customers pay via their mobile phones, and the barrier to purchase is often lower when they don’t need to search for their wallet or enter card details. Today, Vipps is used by over three million Norwegians, giving you access to a large customer base. The customer only needs to enter their phone number and then pay in the Vipps app with just one click.

Why Choosing the Right Payment Solution is Important

Some of the most important criteria for choosing the right payment solution for your online store are costs, conversion rate, and user experience. These are the three aspects we will delve into in this article, but it is also recommended that you consider the following points when choosing a payment solution:

  • Customer Service: You should be able to quickly get help with technical issues.
  • International Solutions: Check that the payment solution is accepted abroad.
  • Security: Ensure customers’ personal information is stored securely.
  • Ownership: Determine whether you or the payment solution provider owns the customer data.

Costs and fees are among the first things you should consider when choosing a payment solution. Investigate the setup costs and monthly fees carefully. It’s important to get a complete overview to ensure the payment solution fits your budget. There are solutions well-suited for both new and larger businesses, such as Klarna and Vipps. This makes it easier to scale your business over time as your budget grows.

Another important aspect is the conversion rate, which is also linked to user experience. DIBS Easy and Klarna are good examples of solutions that allow returning customers to pay with just one click. The system remembers the customer’s details, so they don’t have to enter them each time they want to shop with you.

Offering multiple payment methods can be advantageous for both the customer experience and conversion rate. You can increase your sales by allowing the customer to choose the payment solution that suits them best. It’s important to make the shopping experience as easy and hassle-free as possible for the customer to boost conversions.

Consider which payment solutions are suitable for your target audience. Young adults, for instance, appreciate being able to pay with VIPPS, while invoice payments and instalment options are good for those selling more expensive products and services.

Payment Solutions That Integrate with Your Online Store

Most payment solutions can easily integrate with Shopify, Magento, BigCommerce, and other major platforms, thanks to robust APIs. Most payment solutions have a list of supported platforms on their websites.

It’s worth noting that comprehensive payment solutions like Klarna and Dibs give you a clear and straightforward overview of your accounts, as you have all payments consolidated in one place. You can choose to receive a single payout to your account, making bookkeeping much faster.

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