Any business in existence wants to ensure that they continue to grow and remain profitable. However, simply hoping for this outcome is not going to make this a reality. The key to accelerated growth requires continuous innovation in both business and technology. If there are any limitations found within current technological infrastructures, any progress forward will come to a screeching halt.
A major roadblock can be traced to how the merchant accepts payments. Innovation requires that there be flexibility when it comes to payments and “eCommerce infrastructures.” Certain payment solutions may not be equipped to accommodate certain needs of merchants. The consequence is that any goal to venture into new markets will only be restricted or even delayed.
Those companies that are on the fast track of growth have relied on having multiple payment gateways to uphold their specific and ever-changing payment requirements.
Why Having Multiple Payment Gateways Is Key
Increasingly, customers have demanded not only outstanding customer service, but also their preferred method of payment. By allowing customers to pay how they prefer and reduce the number of declined transactions, businesses will be enhancing the overall customer experience, thereby fostering repeat business and ultimately more growth.
However, businesses cannot rely on a single payment gateway. Here are the reasons that having multiple payment gateways is a worthwhile investment.
- Supports Business Innovation
By having more than one payment gateway, a business will be equipped to support new business models. For example, if your company wants to introduce a monthly subscription and billing model, you can certainly do that in case one does not readily support it.
- Expand Geographic Coverage
If your goal is to expand your business overseas, then having multiple payment gateways will work in your favor. By supporting multiple payment gateways, an eCommerce business can easily direct transactions to the payment gateway that best supports a specific region. This will ensure that there will be more successful transactions across numerous markets.
- Allows Business Flexibility
Gateway providers come and go and therefore being able to store card data outside the gateway or in a “duplicate backup vault” that can be found outside the gateway offers plenty of flexibility and security. It also offers the freedom to switch gateways if necessary.
Other common occurrences are that the gateway can be down or simply unresponsive. Here you stand to lose your customer base as well as your bottom line. With multiple payment gateways, this won’t be an issue as you can easily re-route transactions through a different gateway, with little interruption.
- Offer Payment Options Customers Demand
Customers already have their preferred payment method in mind before they visit your store. One customer may be more inclined to use their credit card to rack up bonus points, others prefer not to enter their credit card information but instead use their PayPal account.
By having multiple payment gateways, you are allowing for more customization of payments for more customers. With these options made available, customers are likely to come back.
Know Your Business Needs
Payment gateways are an essential component within a customer’s purchasing experience. It is critical that the customer’s buying journey is as seamless as possible.
Therefore, merchants should carefully evaluate what exactly they need in their business before they mechanically choose a single payment gateway.
If the company is seeking rapid growth, having multiple payment gateways ensure that more payment methods can be used, payments can be processed efficiently, and can also accept payments from customers from around the world.