Purchase on account: Why you should offer this payment method as an Onlinehändler:in
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 retailer, it is crucial which payment methods you offer your buyers to choose from. The figures speak for themselves: According to the E-Commerce Sentiment Barometer 2024 by HWZ, purchase on invoice with 70% remains one of the most popular payment methods.
That retailers have also recognised this is shown by the Online Retailer Survey 2024 by ZHAW: Around 72 percent of Swiss online retailers offer this method. For 34 percent of them, purchase on invoice even accounts for a revenue share of over 50 percent. Anyone who does not offer this payment method is therefore foregoing potential sales.
In addition, no other means of payment 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 they actually pay for them. This gives them the security that the ordered product meets their expectations. That is exactly what purchase on invoice enables.
Generate more revenue thanks to greater 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 count on their fairness with regard to payment. A study by HWZ on the success factors in Swiss e-commerce confirms that this perceived security in particular 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 that of their credit card. 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 revenue of your online shop. If you offer this payment method, your business appears more reputable, you can significantly reduce aborted purchases and increase the completion rate, especially among 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 tend to return more often and recommend your shop.
Protect yourself against any risks
Although the advantages of purchase on invoice clearly outweigh the disadvantages, this payment method also entails some challenges. For example, it could happen that you ship the goods, but your customers do not pay. Such a situation can cause major difficulties, especially for smaller retailers with limited resources. And the manual effort involved in managing incoming payments, reminders or debt collection processes should also not be underestimated.
It therefore makes even more sense to delegate the effort as well as the responsibility. Studies by Lucerne University of Applied Sciences and Arts on accounts receivable management at SMEs emphasise that outsourcing the processes to specialised providers not only minimises the risk of payment defaults, but also preserves your own liquidity and significantly reduces the administrative burden.
The good news: There are various purchase on invoice providers that take on the risk of payment default and the assessment of buyers, the so-called credit check, for you. In the following, 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 third-party providers with Payrexx:
POWERPAY
With POWERPAY, developed by MF Group AG, you can offer your customers purchase on invoice with instalment payment option. POWERPAY takes over the credit check and the risk of non-payment. 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 instalment payment option from CembraPay as a payment method. A unique solution in Switzerland – without interest or additional fees. For you as a retailer, with guaranteed default risk and advance 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 invoice purchase solution without high fixed costs or complicated integrations. This provider is particularly interesting for you as a retailer if you want to get started with little effort while still appearing professional.
The following provider is available within the payment provider Payrexx Pay Plus developed by Payrexx:
Klarna
Klarna is perfect for retailers who sell their products internationally. Klarna is established across Europe and builds trust with customers, especially within medium-sized and larger shops. In addition to classic purchase on invoice, Klarna offers options such as “Pay later”, instalment payment or financing.
Purchase on invoice is far more than just a payment method that you offer as a retailer. It is a strategic tool that directly addresses new customers' need for security and trust. If you offer this option, you can secure yourself a clear competitive advantage. And with Payrexx, these benefits can be easily transferred to your online shop.
