August 21, 2014 (Thu): Cash or credit? Not many consumers would want to pay using “cash” for their purchases on the Internet. It isn’t convenient or easy to buy online only to have to pay physical cash, somewhere else at a later stage. Online sellers can bridge this gap by accepting online credit card and internet banking payments.
According to recent payment statistics published by Bank Negara Malaysia, the number of credit cards in circulation in Malaysia was 8.1 million as at June 2014. By accepting online credit card payments, merchants will be more easily able to access this mass segment of the population.
Instant gratification is the primary motivation for online shopping. The consumer wants it here and now. Online shoppers typically would want to conclude the purchase quickly by making an online payment and expect that the purchased items will be shipped promptly to their doorstep. Asking customers to separately pay in cash opens up another step in the process. The customer may not return to complete the order and thus sales could be lost. Also, cash payments will delay delivery as the sellers will deliver goods after they are certain that payment is received. Because of this, most online shoppers will prefer to purchase items from websites that accept online payments.
Online credit card payments also increases consumer confidence with regard to your online store. Customers may be unsure about online stores that they have had no prior shopping experience with. The fraud protection offered by credit card companies to cardholders alleviates these concerns.
So why don’t all online sellers accept online card payments? The most common reason is the fees. In supporting #MYCyberSALE, the first and biggest cyber sale to be launched by Multimedia Development Corporation (MDeC) in the country from 29th September to 10th October 2014, online sellers can now subscribe for eGHL’s online payment service at zero one-time signup fee and zero yearly fee until 30th September 2014.
Commenting on the latest promo offered by eGHL, Raj Lorenz, the Group CEO of GHL Systems Berhad, said: “Various studies show that when online shoppers are given other than cash payment options, they are more likely to make impulse purchases and spend more per purchase. This will help online sellers increase their conversion rates, generate sales and overall revenue.”
“Online sellers should take this opportunity to start accepting online card payments for their online stores. With eGHL, there is zero upfront cost. Also, the transaction fee is especially low at 2.8%. This is a great opportunity, that won’t last forever, for online merchants to embrace online payments as a total solution for their customers” Raj added.