Online Retailers Adopt More Alternative Payment Methods

Major online retailers are leading the way in adopting alternative payment methods. A recent study by Brulant points out that out of 100 major online retailers, 30 percent offer alternative payment methods to credit cards. Brulant reports on some of its alternative payment findings:
“One of the most surprising findings is the increase in retailers offering all three alternative payment methods,” says Brulant principal Adam Cohen, noting that none of the same retailers offered all three methods in February 2007. “Today we find 5% adoption of all three at a variety of retailers from Toys ‘R Us to PetSmart to Rite Aid. This reinforces the ‘customer is king’ mentality, as retailers begin to offer a multitude of choices for checkout.”
This is further indication that ecommerce shoppers want the ability to limit how many ecommerce Web sites get their personal information. It also emphasizes the increasing customer focus in online shopping on increased options.
The study did not address the Amazon “Pay Now” widget, instead focusing on the more popular options: PayPal, Google Checkout and Bill Me Later. These three services are making inroads, it appears, and it may be difficult for Amazon, a late-comer to the alternative payment game, to catch up. Adding the “Pay Now” widget to your ecommerce site, in addition to the three other major alternative payment methods won’t hurt, though. Ecommerce Trends points out that alternative payment is becoming a consideration, along with product choices:
“As online shopping continues to grow, it is critical to not only expand your product assortment,” but to also offer “alternative means of payment,” says Marty Keane, senior vice president of e-commerce at Bluefly an online retailer.
Posted by Miranda | February 6, 2008 | 6 Comments


