Purchase on Invoice: Why you as an online retailer should offer this payment method
The payment method Purchase on Account is often the decisive tool to turn hesitant first-time visitors into paying customers. In this article, you will learn why this payment method is so important in Swiss e-commerce and how you can easily offer it in your shop with Payrexx.
Linda
Rajan
As an online merchant, it's crucial which payment methods you offer your buyers. The numbers speak for themselves: According to the E-Commerce Sentiment Barometer 2024 by HWZ, invoice purchase with 70% still remains one of the most popular payment methods.
That merchants have also recognized this is shown by the Online Merchant Survey 2024 by ZHAW: Around 72 percent of Swiss online merchants offer this method. For 34 percent of them, invoice purchase even accounts for a sales share of over 50 percent. Those who do not offer this payment method are thus missing out on potential sales.
Moreover, no other payment method satisfies the need for control and security when shopping online as well as this one. First-time visitors to your webshop often want to check your goods and services before actually paying for them. This gives them the assurance that the ordered product meets their expectations. This is exactly what invoice purchase allows.
Generate more revenue thanks to stronger trust
The foundation of trust you create by offering purchase on account works in both directions. On one hand, you provide your customers with the security to first review the goods. On the other hand, you demonstrate that you rely on their fairness in terms of payment. A study by HWZ on success factors in Swiss e-commerce confirms that this perceived security significantly lowers the purchase threshold, especially for new customers.
Many people are also skeptical about online shopping - especially when they have to enter sensitive data, such as their credit card information. Accordingly, the purchase process is often canceled at precisely this point. With purchase on account, you overcome this hurdle: Your customers can conveniently obtain goods or services and usually only need to provide their address for delivery.
Ultimately, purchase on account also positively impacts the revenue of your online shop. By offering this payment method, your business appears more reputable, you can significantly reduce purchase cancellations and increase the completion rate, especially with new customers. Data from the Netcomm Suisse Association regularly show that the absence of preferred payment methods is one of the main reasons for cart abandonment. Satisfied customers are also more likely to return and recommend your shop.
Safeguard against potential risks
Although the advantages of purchase on account clearly outweigh the disadvantages, this payment method also has some challenges. For instance, it might happen that you send the goods, but your customers' payment does not arrive. Such a situation can cause significant difficulties, especially for smaller merchants with limited resources. And the manual effort involved in managing incoming payments, reminders, or debt collection processes should not be underestimated.
It's all the more sensible to pass on the effort and responsibility. Studies by the Lucerne University of Applied Sciences on accounts receivable management in SMEs emphasize that outsourcing processes to specialized providers not only minimizes the risk of payment defaults but also preserves your liquidity and significantly reduces administrative burdens.
The good news: There are various invoice purchase providers that take on the payment default risk as well as checking the buyers' creditworthiness for you. Below, we take a look at all these options and explain how you can use them with your Payrexx account.
The following providers can be connected via External provider with Payrexx:
POWERPAY
Mit POWERPAY, entwickelt von der MF Group AG, kannst Du Deinen Kund:innen Kauf auf Rechnung mit Teilzahlungs-Option anbieten. Die Bonitätsprüfung und das Risiko eines Zahlungsausfalls übernimmt dabei POWERPAY. Dieser Anbieter ist ideal für Shops mit Fokus auf den Schweizer Markt, bei denen Kundenzufriedenheit und Sicherheit im Vordergrund stehen.
CembraPay
Schenke Deinen Kund:innen grösstmögliche Flexibilität, indem Du ihnen Kauf auf Rechnung mit oder ohne Teilzahlungsmöglichkeit von CembraPay als Zahlungsmittel anbietest. Eine einzigartige Lösung in der Schweiz – ohne Zinsen oder zusätzliche Gebühren. Für Dich als Händler:in mit garantiertem Ausfallrisiko und Vorfinanzierung. CembraPay verhilft Dir zu einer höheren Conversionrate und steigert Deinen Umsatz.
Ideal Payment
Ideal Payment ist eine gute Lösung für kleine und mittlere Unternehmen, welche Konditionen individuell vereinbaren und Prozesse an ihr Geschäftsmodell anpassen möchten. Mit Ideal Payment erhältst Du eine sichere Rechnungskauf-Lösung ohne hohe Fixkosten oder komplizierte Integrationen. Dieser Anbieter ist für Dich als Händler:in besonders dann interessant, wenn Du mit wenig Aufwand starten und trotzdem professionell auftreten möchtest.
The following provider is available within the payment provider developed by Payrexx Payrexx Pay Plus:
Klarna
Klarna ist perfekt für Händler:innen, welche ihre Produkte international verkaufen. Klarna ist europaweit etabliert und schafft Vertrauen bei Kund:innen, gerade innerhalb mittelgrossen und grösseren Shops. Neben dem klassischen Rechnungskauf bietet Klarna Optionen wie “Später bezahlen”, Ratenzahlung oder Finanzierung.
Invoice purchase is far more than just a payment method you offer as a merchant. It is a strategic tool that directly addresses the need of new customers for security and trust. By offering this option, you can secure a clear competitive advantage. And with Payrexx, these advantages can be easily transferred to your online shop.
