What does Paymode Sequencing at Checkout Mean?

Online selling and buying have become an integral part of our lives. India had the third largest online shopper base in the world of 150 million in FY2021 (Source: IBEF), which signifies a significant headroom for online business growth. If you also run an online business and want to reach as many potential consumers as possible, you would need a wide range of payment methods available at checkout.

This is because each payment method appeals to a specific demographic of customers. With the availability of multiple payment options on your online store, you can increase the likelihood of a successful sale irrespective of the consumer demographics. In general, here’re some of the most common payment methods opted by online shoppers:

Debit cards
Credit cards
Digital wallets
Net banking
UPI
Buy Now, Pay Later

While you can easily add these options to your website or app by selecting a suitable payment gateway, there’s a catch here.

How will you set the order of payment methods at checkout and is it important to do so?

To find out more, let’s cover paymode sequencing in detail.

What is paymode sequencing?

Paymode sequencing, as the name suggests, refers to the process of setting various payment options in a particular order at the checkout page. With the availability of popular payment methods in a particular order, it becomes easier for your customers to pay you online without any hassle.

By creating a suitable sequence of payment options, you can make it easier for existing customers to make payments either through their go-to payment method or select a different one as per their convenience. In relation to the new customers, showcasing digital payment options like online wallets and credit cards at the top can attract them and provides the leverage to win more potential customers to increase sales.

Besides this, you should also know that paymode sequencing, as a feature, is not limited to big companies or those selling big-ticket items. It depends on the selection of the right payment gateway that offers you the flexibility to arrange payment modes in a particular order. Irrespective of the size and scale of your business, you can enable paymode sequencing at the checkout based on your integrated payment gateway.

Credit cards at the top followed by the rest of the payment methods, UPI at the top followed by digital wallet, and then others – wondering how it can be beneficial for your business? Continue reading.

Benefits of paymode sequencing for your business

Easy to highlight the most preferred payment method at the top

If you are keen on knowing which payment methods your customers use the most, you might have set up some payment analytics tool. Dig deeper into the data and you will find what percentage of buyers select credit cards, debit cards, or UPI on your online store to make payments.

Paymode sequencing allows you to set the order of payment methods based on popularity. Furthermore, you can also look at the current market trends related to different payment options. For example, keeping up with the tremendous growth of UPI in India, you can set it to be the first payment method at the checkout. Similarly, if your target consumers are young individuals who prefer paying via a digital wallet, you can garner their attention by keeping it at the top of the list.

Calculative savings on payment gateway charges

If you have been in the online selling space, you would know that you need to pay certain charges on every transaction processed via the integrated payment gateway. This is generally defined as Merchant Discount Rate or MDR in percentage.

To be more specific, if a customer purchases a product worth Rs. 1000 and the MDR is 3% with respect to the selected payment gateway, you will receive Rs. 970 in your merchant account first and then in your bank account for this order. No matter how small or big the deduction is, it forms a part of the business capital outflow which you would want to minimize as much as possible.

Also Read: Merchant Account: Definition, Working, Comparison with PG, and More

Since the MDR is different for different payment methods, you can save money with paymode sequencing by arranging the payment option with the least MDR at the top. For example, if UPI has a lower MDR than some specific credit cards, you can keep it at the top to highlight its usage and save on the charges payable to the payment gateway provider(s).

Keep in mind that the selection of a payment option is up to the customers. While you cannot control that entirely, you can make sure that the payment methods with lesser MDR are showcased at the top using paymode sequencing.

All this information takes us to the next important question that might have popped up in your mind –

How will you get the paymode sequencing feature?

The simplest answer is – switch to Paytm Payment Gateway.

Switch to Paytm Payment Checkout to benefit from paymode sequencing

If you want to benefit from getting paid almost instantly for sales on your website or app, look no further than Paytm Payment Checkout. Also known as JS Checkout, our payment solution is easy to integrate in minutes by simply using our pre-built JS code. It also allows you to customize the payment screen as per your brand’s color scheme and arrange the payment options in the sequence you want.

Given below are some other benefits of using JS Checkout to accept online payments: