Payment by Invoice: Why you should offer this payment method as an online retailer
The payment method payment by invoice is often the decisive instrument for turning hesitant first-time visitors into paying customers. In this article, you'll find out why this payment method is so important in Swiss e-commerce and how you can easily offer it in your store with Payrexx.
As an online retailer, it is crucial which payment methods you offer your buyers. The figures speak for themselves: according to the HWZ'sE-Commerce Sentiment Barometer 2024 , paying by invoice is still one of the most popular payment methods at 70%.
The ZHAWOnline Retailer Survey 2024 shows that retailers have also recognized this: around 72% of Swiss online retailers offer this method. For 34 percent of them, payment by invoice even accounts for over 50 percent of sales. Those who do not offer this payment method are therefore missing out on potential sales.
What's more, no other payment method satisfies the need for control and security when shopping online as well as this one. First-time visitors to your online store often want to check your goods and services before they actually pay for them. This gives them the certainty that the product they have ordered meets their expectations. This is exactly what payment on invoice makes possible.
Generate more sales thanks to greater trust
The basis of trust that you create by offering payment by invoice works in both directions. On the one hand, you give your customers the security of checking the goods first. On the other hand, you show that you count on their fairness with regard to payment. A study by the HWZ on success factors in Swiss e-commerce confirms that it is precisely this perceived security that significantly lowers the purchase threshold, especially for new customers.
Many people are also skeptical when it comes to shopping online - especially if they have to enter sensitive data, such as their credit card details. As a result, the purchase process is often interrupted at this point. With payment by invoice, you can overcome this hurdle: Your customers can conveniently purchase the goods or services and usually only have to enter their address for delivery.
Ultimately, payment on invoice also has a positive effect on your online store's sales. If you offer this payment method, your business will appear more reputable, you can significantly reduce shopping cart abandonment and increase the completion rate, especially for new customers. Data from the Netcomm Suisse association regularly shows that the lack of preferred payment methods is one of the main reasons for shopping cart abandonment. Satisfied customers are also more likely to return and recommend your store to others.
Protect yourself against any risks
Although the advantages of purchasing on account clearly outweigh the disadvantages, this payment method also poses some challenges. For example, it could happen that you send the goods but your customers fail to pay. A situation like this can cause major difficulties, especially for smaller merchants with limited resources. The manual effort involved in managing incoming payments, reminders or debt collection processes should also not be underestimated.
This makes it all the more sensible to pass on the effort and responsibility. Studies by the Lucerne University of Applied Sciences and Arts on debtor management at SMEs emphasize that outsourcing processes to specialist providers not only minimizes the risk of non-payment, but also protects the company's own liquidity and significantly reduces the administrative burden.
The good news is that there are various payment by invoice-providers that take on the risk of non-payment and check the buyer's 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 used via third-party providers with Payrexx via third-party providers:
POWERPAY
With POWERPAY, developed by MF Group AG, you can offer your customers payment by invoice with an installment facility. POWERPAY takes care of the credit check and the risk of non-payment. This provider is ideal for stores with a focus on the Swiss market, where customer satisfaction and security are paramount.
CembraPay
Give your customers the greatest possible flexibility by offering them payment by invoice with or without CembraPay's installment facility as a means of payment. A unique solution in Switzerland - without interest or additional fees. For you as a merchant:in with guaranteed default risk and pre-financing. CembraPay helps you to achieve a higher conversion rate and increase your turnover.
Ideal Payment
Ideal Payment is a good solution for small and medium-sized companies that want to agree individual conditions and adapt processes to their business model. With Ideal Payment, you get a secure invoice purchasing solution without high fixed costs or complicated integrations. This provider is particularly interesting for you as a merchant if you want to start with little effort and still present yourself professionally.
The following provider is part of the payment provider developed by Payrexx Payrexx Pay Plus available:
Klarna
Klarna is perfect for merchants who sell their products internationally. Klarna is established throughout Europe and creates trust among customers, especially within medium-sized and larger stores. In addition to classic payment by invoice, Klarna offers options such as "pay later", payment by installments or financing.
Payment by invoice is much more than just a payment method that you offer as a retailer. It is a strategic tool that plays directly into new customers' need 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 store.
