PayByLink in 2024: Boost sales and reduce cart abandonment for your business
In 2023, the total transaction value via PayByLink soared to over €1.403 billion, marking a significant trend towards more convenient and secure payment methods.
This article delves into the current landscape of PayByLink, highlighting its growing popularity, the diverse sectors it's transforming, and the positive consumer attitudes towards this payment method. Additionally, it explores how Silkpay facilitates the integration of PayByLink for merchants, offering a simplified and efficient transaction process that caters to the evolving needs of businesses and consumers alike.
The current landscape of PayByLink
In 2023, PayByLink surged in popularity, reflecting a significant shift towards more convenient and secure payment methods. The total transaction value via PayByLink has soared to over €1.403 billion, underscoring its growing acceptance and integration across various sectors.
This payment method enables businesses to get their money faster, with 90% of payments made within one week after sending the payment link, highlighting its efficiency in accelerating cash flow.
For example, the hospitality sector, represented by entities like XO Hotels, has witnessed a remarkable impact; the company's revenue department reported a 24 percent decrease in last-minute cancellations after adopting PayByLink. This reduction not only signifies improved customer commitment but also enhances revenue predictability for businesses.
Consumer attitudes towards PayByLink are increasingly positive. A study by Twilio revealed that 67% of consumers express interest in receiving payment links via text message, indicating a preference for the convenience and immediacy that PayByLink offers. This consumer readiness aligns with the broader digital transformation trends, where immediacy and convenience are paramount.
The versatility of PayByLink has led to its widespread use across various platforms and markets. E-commerce, services, and hospitality are among the sectors where PayBy Link is particularly prevalent, driven by the need for streamlined payment processes that cater to the dynamic consumer behaviors and expectations.
Forrester Research's projection that PayByLink will reach a market share of 10% by 2025 further validates its trajectory as one of the fastest-growing payment methods. This growth is fueled by the method's alignment with global trends towards digitalization, the demand for seamless customer experiences, and the strategic adoption by businesses seeking to optimize their transaction processes.
Overall, the current state of PayByLink illustrates a robust growth pattern, supported by positive consumer attitudes, significant adoption across key sectors, and the strategic benefits it offers to businesses in terms of revenue management and customer engagement. As the digital economy continues to evolve, PayByLink stands out as a critical component in the future of payments, offering a blend of convenience, security, and efficiency that meets the demands of both businesses and consumers.
How PayByLink works
PayByLink operates through a streamlined process that begins with the creation of a unique payment link by businesses in their Silkpay Backoffice or APP.
After the link with a specific amount to pay is generated, it can be sent to customers through various communication channels such as email, SMS, or social media platforms.
This versatility ensures businesses can reach their clients in a manner that's most convenient for both parties. Once the customer receives the link, they can click on it to complete their payment using their preferred payment method. Upon payment completion, businesses are promptly notified, which helps in streamlining the transaction process and ensuring a smooth operational flow.
Moreover, PayByLink supports a wide array of payment methods, catering to the diverse preferences and needs of customers worldwide. Some of the commonly supported payment methods include Alipay, UnionPay, MasterCard, American Express and IDEAL among others.
This inclusivity of payment options makes PayByLink a versatile tool for businesses, enabling them to accommodate customers from different geographical locations and with varying payment preferences. Thereby enhancing the customer experience and potentially increasing the conversion rate for transactions.
Benefits of PayByLink
Integrating PayByLink into your business operations offers a myriad of benefits, significantly enhancing both the merchant's and the consumer's experience.
For merchants
Ease of setup and deployment: The rising trend towards digitalization in payments, with a notable shift towards digital wallets, emphasizes the simplicity and rapid deployment capabilities of digital payment solutions like PayByLink.
Increased sales and conversion rates: The growing preference for digital payments, with a significant portion of transactions now facilitated through Pay by Link, is reshaping consumer purchasing behavior. A notable statistic highlighting this trend is that 70% of payment links are paid, underscoring the effectiveness of Pay by Link in reducing cart abandonment and boosting sales.
This high conversion rate through Pay by Link demonstrates its role in simplifying the payment process, making it easier and more convenient for consumers to complete purchases, thus directly contributing to higher sales and conversion rates for businesses.
Reduced costs: The adoption of digital payments and the shift from traditional to digital methods can lead to cost savings for merchants. This is evident in the broader adoption of cost-effective digital payment methods, reducing the reliance on more expensive traditional payment processing methods.
For consumers
Convenience: The convenience of digital payments is clear, with 89% penetration in the U.S., and consumers increasingly use multiple digital payment methods.
Security: The growing concerns around security in digital payments, particularly with the exploration of central bank digital currencies (CBDCs) by 90% of central banks, highlight the importance of secure payment methods. PayByLink employs robust encryption technologies, offering a secure way for consumers to complete transactions without worries.
Flexibility: With digital payment methods becoming a significant part of the POS (Point of Sale) sales globally, and a notable portion of digital payments users ready to leave their physical wallets at home, it's clear that consumers appreciate the flexibility that digital payment options provide.
The data underscores the pivotal role of PaybyLink payment methods in shaping the future of transactions, offering a blend of convenience, security, and efficiency for both businesses and consumers. As the digital payment landscape continues to evolve, PayByLink stands out as a vital tool for navigating this changing terrain, driven by consumer preferences and technological advancements.
How Silkpay facilitates PaybyLink for merchants
Silkpay enables merchants to integrate the PayByLink payment method. Through Silkpay's system or APP, merchants can effortlessly create payment links. Once generated, these links can be shared across various communication channels the merchant prefers, such as email, social media, or instant messaging platforms （Facebook, WhatsApp, Instagram, WeChat）.
By utilizing Silkpay for PaybyLink transactions, businesses benefit from a simplified payment process that enhances the customer's checkout experience. The ability to send a direct payment link simplifies the transaction, making it more convenient and accessible for customers to complete their purchases securely and efficiently. This approach not only facilitates smoother transactions but also supports a variety of payment methods, catering to different customer preferences and enhancing overall satisfaction.
Conclusion
As we navigate through the details of PayByLink, it's clear that this payment method is more than just a trend; it's becoming a staple in the digital payment landscape. With its promise of convenience, security, and efficiency, PayByLink is set to redefine the checkout experience for customers and streamline revenue collection for businesses. As the digital world continues to evolve, embracing PayByLink could be the key to staying ahead in the competitive market.
Source
https://www.linkedin.com/pulse/pay-link-payments-rise-gala-technology/
https://paybylink.com/en/blog-en/paybylink-has-significantly-increased-payments/
https://paybylink.com/en/blog-en/over-e-1-billion-collected-through-paybylink/
https://www.statista.com/statistics/1111233/payment-method-usage-transaction-volume-share-worldwide/
https://www.bis.org/publ/bppdf/bispap125.pdf
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About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.
Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.
Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.