What are the payment facilities for individual cards ?
In an ever-changing economic landscape, card payment facilities are changing the way businesses respond to the specific needs of their customers and their business.
Mobile payment with e-wallets
By saving their card details in their phone’s wallet, customers can then pay easily and securely, online or in-store, using the terminal’s NFC (Near Field Communication) technology. This method eliminates the need to manually enter card details, speeding up the payment process. In 2023, PayPal remains the clear favorite among French consumers, adopted by nearly 85% of online payment service users. Apple Pay ranks second, followed closely by Google Pay¹.
For merchants, accepting payments via e-wallets offers several advantages :
- Increase conversion rates by offering a modern payment option that customers appreciate.
- Make card transactions more secure and reduce the risk of fraud, as this type of payment requires strong authentication from the cardholder (code, biometric recognition, etc.).
- No additional fees compared to a classic card payment
Multi-card payment
Multi-card payment is a major innovation, simplifying previously complex checkout processes. Merchants can now include multiple bank cards in a single transaction, for greater flexibility and transparent cost allocation.
For the merchant, multi-card payment has several advantages :
- Increase the conversion rate by offering to divide an amount into several small sums
- Meet specific settlement needs such as multi-participants for example
- Remove the obstacle of card limits
Pre-authorization
When a customer makes a reservation or purchases a service, the merchant may perform a pre-authorization on their credit card. This operation consists of verifying the availability of funds and temporarily blocking them (for up to 30 days) on the customer’s account, with a view to debiting them partially or in full at a later date. Pre-authorization is often used in sectors such as hospitality and rentals, for example.
For merchants, this mechanism offers several advantages :
- Reduce the risk of non-payment by blocking funds before the service or product is provided.
- Plan your cash flow more effectively with visibility into upcoming payments
- Digitize the deposit process, still often in the form of a check
What are the recurring card payment facilities ?
Today, with the advent of recurring business models, many companies are looking to offer practical and flexible solutions that simplify their regular collections on the one hand, and their customers’ experience on the other.
One-click
Once a customer has entered their card details on the payment page, they can choose to save them on the site. This way, when making future card payments, they will not need to re-enter this information. This method, widely used in e-commerce and subscription services, radically simplifies the purchasing process by allowing customers to complete a transaction with a single click.
For a merchant, one-click offers several advantages:
- Encourage customers to complete their purchases and thus reduce shopping cart abandonment.
- Facilitate the sale of additional products (upsales) and quick purchases at low amounts
- Provide a smooth and effortless payment experience, thereby encouraging repeat business from regular customers.
Credit card installment payment
Payment in installments by credit card allows consumers to spread the cost of a purchase over several payments. In practical terms, when a customer opts for payment in installments, the total amount is divided into several payments, which are automatically debited from their credit card.
For merchants, this payment facility offers several advantages:
- Increase the average basket size, as customers can more easily access more expensive goods or services.
- Boost sales by encouraging consumers to shop more regularly, thereby building customer loyalty.
- Reduce the risk of non-payment, as the amounts debited are smaller and there is therefore less risk of refusal.
Credit card payment
Credit card direct debit allows merchants to set up regular payment systems (monthly subscriptions or periodic bill payments, etc.) by scheduling regular card payments. By choosing this option, customers authorize the merchant to automatically debit their card for the amounts due at defined intervals.
For merchants, card payments offer several advantages:
- Ensure regular and predictable payments, simplifying cash flow management and reducing the risk of default.
- Save time and administrative resources by automating the payment collection process.
- Provide a smooth and hassle-free payment experience for the payer
Payment facilities to promote customer loyalty
Card payment facilities are essential strategic tools for ensuring customer loyalty. More than just transaction facilitators, they represent the symbiosis between convenience and trust, key elements of a lasting customer relationship.
- From a commercial perspective, they serve a dual purpose: companies can fully adapt to their customers’ expectations and payment habits to maximize sales, while demonstrating profound technological agility.
- From a customer perspective, this adaptability contributes to customer satisfaction and appreciation, making them more likely to return for future purchases.
In short, the integration of credit card payment facilities should not be seen as simply adding “options,” but rather as a real investment in long-term customer relations.
What card payment facilities should I offer my customers?
Integrating card payment facilities into your payment process is an important strategic decision. These facilities remove barriers to payment, whether financial (high amounts, inability to pay in installments, etc.) and/or psychological (long and complex payment process, regular manual payments, etc.).
To maximize their effectiveness and ensure an optimal customer experience, this selection must take into account the commercial context and the profile of the target customer base. The goal is not to offer every possible payment option, which could have the opposite effect and alienate consumers, but rather to choose them sparingly, with a thorough understanding of the market and customer base :
- Market focus: business sector, value of goods and services offered, associated costs and expenses, etc.
- Focus on the customer : type of customer (individuals or professionals), average basket size, payment habits, preferred payment method, purchase frequency, etc.
The integration of credit card payment facilities is much more than just a convenience for consumers; it is a strategic lever for companies keen to respond to changing market expectations. By offering flexible and tailored payment options, companies can not only improve their competitiveness, but also enhance customer satisfaction and loyalty.
¹ Statista: Online payment – the most popular services in France (2023)
