Purchase on account: Why you should offer this payment method as an online Comerciante
The payment method 'purchase on account' is often the crucial tool for turning 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 is crucial which payment methods you offer your customers. The figures speak for themselves: according to the E-commerce Sentiment Barometer 2024 by HWZ, the purchase on invoice with 70 % is still one of the most popular payment methods.
That merchants have recognised this is shown by the Online Merchant Survey 2024 by ZHAW: Around 72 per cent of Swiss online merchants offer this method. For 34 per cent of them, purchase on invoice even accounts for a revenue share of over 50 per cent. If you do not offer this payment method, you are therefore foregoing potential sales.
In addition, no other payment method satisfies the needs 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 first, before actually paying for them. This gives them the security that the product ordered meets their expectations. That is exactly what purchase on invoice enables.
Generate more revenue thanks to stronger trust
The basis of trust that you create by offering purchase on invoice works in both directions. On the one hand, you give your customers the security to check the goods first. On the other hand, you show that you rely on their fairness regarding payment. A study by HWZ on the success factors in Swiss e-commerce confirms that exactly this perceived security significantly lowers the purchase barrier, especially for new customers.
Many people are also sceptical about shopping online – especially when they have to enter sensitive data, such as their credit card details. Accordingly, the purchase process is often abandoned at exactly this point. With purchase on invoice, you overcome this hurdle: your customers can conveniently obtain the goods or services and usually only need to provide their address for delivery.
Ultimately, purchase on invoice also has a positive effect on the turnover of your online shop. If you offer this payment method, your business appears more reputable, you can significantly reduce cart abandonment and increase the conversion rate, especially for 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 also return more often and recommend your shop to others.
Protect yourself against any potential risks
Although the advantages of purchase on invoice clearly outweigh the drawbacks, this payment method also entails some challenges. For example, it may happen that you send the goods, but your customers do not pay. Such a situation can cause major 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.
That makes it even more sensible to pass on the effort and responsibility. Studies by Lucerne University of Applied Sciences and Arts on debtor management at SMEs emphasise that outsourcing the processes to specialised providers not only minimises the risk of payment defaults, but also protects your own liquidity and significantly reduces the administrative burden.
The good news: there are various purchase on invoice providers who take over the risk of payment default as well as the assessment of buyers, the so-called credit check, 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 to Payrexx via third parties:
POWERPAY
With POWERPAY, developed by MF Group AG, you can offer your customers purchase on invoice with a partial payment option. POWERPAY takes on the credit check and the risk of payment default. This provider is ideal for shops focused on the Swiss market, where customer satisfaction and security are the priority.
CembraPay
Give your customers maximum flexibility by offering them purchase on invoice with or without an instalment payment option from CembraPay as a payment method. A unique solution in Switzerland – without interest or additional fees. For you as a merchant, with guaranteed coverage against default and pre-financing. CembraPay helps you achieve a higher conversion rate and increases your revenue.
Ideal Payment
Ideal Payment is a good solution for small and medium-sized companies that want to agree terms individually and adapt processes to their business model. With Ideal Payment, you get a secure purchase-on-invoice solution without high fixed costs or complicated integrations. This provider is particularly interesting for you as a merchant if you want to get started with little effort and still appear professional.
The following provider is available within the payment provider Payrexx Pay Plus developed by Payrexx:
Klarna
Klarna is perfect for merchants who sell their products internationally. Klarna is established across Europe and builds trust with customers, especially in medium-sized and larger shops. In addition to the classic purchase on invoice, Klarna offers options such as “Pay later”, instalment payments or financing.
Purchase on invoice is far more than just a payment method you offer as a merchant. It is a strategic instrument that directly addresses the need of new customers for security and trust. If you offer this option, you can secure a clear competitive advantage. And with Payrexx, these advantages can be easily transferred to your online shop.
