Not everyone understands this, but the way businesses handle payments can be the key to closing a sale. A poor payment experience leads to frustration, cart abandonment, and lost revenue. Unfortunately, many online shops still make common payment-related mistakes that cost them sales.

This article looks at the top mistakes online shops make with payments and, more importantly, ways to fix them. Addressing these issues improves conversions, reduces abandoned carts, and boosts overall customer satisfaction.

Why payment experience is crucial for conversion

When it comes to online shopping, the payment process is often the make-or-break moment. In 2024, a striking 70.19% of shopping carts were abandoned, and many of those were due to payment-related issues. A reluctance to enter their credit card details due to security concerns (25%), a long or complicated checkout (22%), and limited payment options (13%) are the top reasons customers walk away before completing their purchase.

Plus, the larger the total amount at checkout, the greater the chance of abandonment. For high-value items, the stakes are naturally higher, making it even more critical to ensure the payment process is smooth, secure, and straightforward. Let’s see which mistakes can come in the way.

1. Overcomplicating the payment process

The mistake
A complicated payment process is a major turn-off for shoppers. Asking for too much information, forcing them to create accounts, or making the checkout too long can drive customers away before they hit “Pay.”

How to fix it
Keep it simple! Offer guest checkouts, reduce the number of required fields, and streamline the process. A smooth, fast checkout experience will keep customers moving forward and reduce cart abandonment.

2. Limited payment methods

The mistake
If you’re only accepting credit and debit cards, you’re limiting your potential customer base. Different regions have different payment preferences, and failing to offer alternatives can cost you sales.

How to fix it
Offer a variety of payment options to meet your customers’ needs. Consider adding mobile wallets, bank transfers, Pay by Bank and cash-based methods, depending on the target market. The more choices you provide, the more likely customers are to complete their purchase.

3. Not offering local payment methods

The mistake
Selling internationally and offering only hyped global payment options, you’re missing out. Every market prefers and has access to different payment methods, and ignoring these preferences can cut your sales. 

How to fix it
Research the preferred payment methods in the countries where your customers are located. In Latin America, go for Boleto Bancário. In Asia, opt for Alipay or WeChat Pay to win more customers. And in Northern Europe, it’s worth paying attention to open banking methods, which are becoming increasingly popular. 

By accommodating local preferences, you’ll enhance customer satisfaction and increase your chances of completing the sale.

4. Ignoring mobile payments

The mistake
With more customers shopping on mobile devices, failing to optimize your payment system can result in lost sales. If your checkout process isn’t mobile-friendly enough, it’s likely to frustrate customers and lead to abandonment.

How to fix it
Simplify the payment layout for mobile screens with larger buttons and easy navigation. Reduce the number of fields and enable auto-fill for a faster checkout process. Add popular mobile-friendly payment options that will allow one-tap payments. 

5. Lack of payment security

The mistake
If customers don’t feel their payment information is safe, they won’t complete their purchase. Security is a primary concern for online shoppers, and if your website doesn’t appear safe, they’ll walk away.

How to fix it
Secure payment process includes advanced anti-fraud tools, encryption, tokenisation, frequent audits and many other aspects. To avoid confusion, it is easier to cooperate with a trusted payment service provider who will take care of all the necessary security measures.

Also, consider offering secure payment methods, like Payop’s Pay by Bank, which doesn’t require sharing sensitive card information. 

6. No transparent pricing and fees information

The mistake
Hidden fees can be a major turn-off for customers. 48% are likely to abandon their carts if they get to checkout and discover unexpected shipping costs or payment processing fees.

How to fix it
Be transparent about all costs upfront. Show customers the full price, including shipping and taxes, early in the process. The more precise you are about costs, the more likely customers will complete their purchase without frustration.

The end result

Payment errors don’t just hurt sales, they also damage business reputation. By simplifying the payment process, offering more payment options, securing transactions, and optimising for both mobile and international customers, you’ll create a better experience that leads to higher conversion rates and increased revenue.

Partnering with a reliable payment provider like Payop ensures your payment systems are streamlined, secure, and capable of handling both local and global transactions seamlessly. With these fixes in place, you will turn every transaction into a win.

The information provided in this content is intended for general informational purposes only and should not be considered financial, investment, legal, tax, or health advice, nor relied upon as a substitute for professional guidance tailored to your personal circumstances. The opinions expressed are solely those of the author and do not necessarily represent the views of any other individual, organization, agency, employer, or company, including NEO CYMED PUBLISHING LIMITED (operating under the name Cyprus-Mail).