The Importance of Online Payment Options
Guess what? Last year, there was a pretty important shift in what online consumers want to use for payment. The top preferred payment options are the same across all generations: Visa is first, and MasterCard is second; it’s the third spot that should make you go check your donation forms.
According to a BizRate Insights study, there’s a distinct generation gap when it comes to the third most important payment option preferred by consumers. Yep, you guessed it: PayPal is in the third spot for every generation except seniors. In fact, PayPal is only separated from MasterCard by two points.
If you’re wondering, the fourth spot belongs to American Express, but preference for that is only half of the second and third preferences. And, to further confirm the consumer preferences, PayPal’s own research shows that 32 percent of millennials use PayPal. Among that group, 42 percent prefer using PayPal on their smartphone.
Most nonprofits are struggling with optimizing the mobile audience for fundraising. Specifically, conversion rates have a tendency to be lower on ads when being viewed on a mobile device versus desktop. So, if you’re not offering PayPal as a payment option, you could be creating an even larger problem for your mobile conversions.
Just remember, as a nonprofit, your offline donors may be falling into that “senior” category, but your online donors are definitely more of a younger generation mix. Many of us have been saying this for a while—PayPal provides the greatest flexibility and even perceived security for those worried about providing a credit card online. It works with checking accounts and credit cards. If you really want to provide options for your donors and prospective donors, you need to make sure this option is included.
Vice President, Strategy & Development
Eleventy Marketing Group
Angie is ridiculously passionate about EVERYTHING she’s involved in — including the future and success of our nonprofit industry.
Angie is a senior exec with 25 years of experience in direct and relationship marketing. She is a C-suite consultant with experience over the years at both nonprofits and agencies. She currently leads strategy and development for marketing intelligence agency Eleventy Marketing Group. Previously she has worked at the innovative startup DonorVoice and as general manager of Merkle’s Nonprofit Group, as well as serving as that firm’s CRM officer charged with driving change within the industry. She also spent more 14 years leading the marketing, fundraising and CRM areas for two nationwide charities, The Arthritis Foundation and the American Cancer Society. Angie is a thought leader in the industry and is frequent speaker at events, and author of articles and whitepapers on the nonprofit industry. She also has received recognition for innovation and influence over the years.