How does payment conversion affect your profits?

How does payment conversion affect your profits?

Payment conversion plays an essential role in the success of your online course or any other business that accepts payments online. A poor payment system can reduce the number of successful payments, reducing your revenue and profits. Let's take a look at what payment conversion is and what factors affect it.

What is payment conversion?

Payment conversion is the percentage of successful transactions relative to the total number of payment attempts. It measures the efficiency of your payment system and shows how well it converts payment attempts into actual payments. For example, if you had 100 payment attempts and only 70 were successful, your payment conversion rate is 70%.

What factors influence payment conversion?

Many factors can affect payment conversion and should be considered when choosing a payment system for your business. Here are some of them:

- Usability: The payment system should be simple and convenient for your customers. Complicated payment procedures or unclear instructions can discourage users and lower conversion rates.

- Variety of payment methods: Providing different payment methods (credit cards, e-wallets, bank transfers, etc.) can attract more customers and increase conversion rates.

- Security: Customers should feel confident when making payments on your site. The payment system must provide a high level of data protection and prevent fraud.

- Speed of processing: Fast payment processing is key to customer satisfaction. Long delays can lead to loss of interest and payment rejection.

Let's present two scenarios for clarity. In the first case, you have a payment system with a payment conversion rate of 70%. This means that only 70 out of every 100 payment attempts will be successful. Imagine that your online course costs $100 and you have 1000 potential customers interested in buying it. If the payment conversion rate is 70%, only 700 of them will successfully pay for the course. The revenue from those paments would be 700 * 100 = $70,000.

Now consider the second scenario. You decide to switch to Meleton Pay, which has a payment conversion rate of 99.7%. Now, with the same 1,000 applications and a course price of $100, you can expect a higher conversion rate. Out of 1,000 payment attempts, 997 will be successful. Thus, your revenue will be 997 * 100 = $ 99,700.

As you can see, switching to a payment system with a higher payment conversion significantly increases your revenue and profit. The difference between 70% and 99.7% can be huge, especially with a large number of payment attempts.

These examples emphasize the importance of choosing the right payment system for your business. Do not neglect this aspect purely in favor of lower fees or because you are used to using a certain payment system. Research the market, evaluate ratings and reviews, and pay attention to payment conversions to make an informed choice.

In conclusion, payment conversion has a direct impact on your profits. High conversion means more successful payments and more revenue for your business. Meleton Pay has a payment conversion rate of 99.7% for most regions.