Payment methods are a key element of a streamlined checkout experience. In essence, shoppers are more likely to proceed with the checkout if they see the preferred payment method.
Yet, trying to cater to everyone, you might think of including a long list of options. This leads to payment gateway fatigue. It happens when there are too many payment choices, leaving customers confused.
Studies show that 73% of shoppers consider the payment experience a top priority when choosing where to shop. This highlights the need to offer the right payment options without overwhelming customers.
Let’s break down what payment gateway fatigue is, how it affects cart abandonment, and what you can do to optimise the payment experience for higher conversions.
What is Payment Gateway Fatigue?
Payment gateway fatigue is a state where customers often feel confused because of too many payment choices. Instead of improving convenience, payment fatigue leads to decision paralysis, where the customer gets so confused that they abandon the cart.
Key factors contributing to fatigue
Excess payment options create friction.
Here’s how too many options can negatively impact the shopping experience and checkout conversion rate:
- The customer’s preferred payment method may get lost in a long list. This frustrates the customer. ultimately leading to cart abandonment.
- A cluttered checkout page can look unprofessional. It may even raise doubts about security.
- Too many unfamiliar options can confuse the customer. They may feel stuck and give up on the purchase.
All of these factors can contribute to a higher cart abandonment rate and lower overall conversions.
The psychology of choice at checkout
Choice overload is a psychological phenomenon where too many options overwhelm people, making decision-making harder.
In The Paradox of Choice, psychologist Barry Schwartz claims that having too many alternatives can cause regret, anxiety, and indecision—even after a purchase.
Here’s how choice overload leads to indecision and cart abandonment:
- Customers may struggle to compare choices or understand which option suits them best.
- The extra effort required to choose can make the checkout experience stressful.
- Shoppers may worry about making the “wrong” choice, especially with unfamiliar payment methods.
- Due to complexity, many customers simply leave without completing the purchase.
Let’s look at some key research findings that demonstrate the negative effects of offering too many choices:
In a survey on decision paralysis, two groups were studied:
23% of participants from Group 1 and 16% from Group 2 chose to walk away from making a decision simply because there were too many options on the table. This same behaviour plays out during checkout when customers are faced with a long list of unfamiliar or unnecessary payment gateways.
Another study by Iyengar and Lepper (2000) tested how the number of choices affects buying decisions.
They set up two tasting tables at a grocery store:
- Table 1 had 24 flavours of jam.
- Table 2 had only 6 jars of jam.
Conversion rates?
- Only 3% of those who visited Table 1 made a purchase.
- 30% of those at the 6-option table bought jam.
Too many choices created decision fatigue, leading to lower conversion rates.
How payment gateway options affect checkout conversion rates
While providing variety in the payment options is essential to boost conversion rates, too many payment options can lower them.
A Baymard study states that a simple and clean checkout experience increases conversion rates by 35%. Customers look for a simple and fast checkout process instead of one with excessive options. Every extra payment method you introduce increases the complexity of the checkout experience.
Here’s how too many options can hurt conversion:
- Increased dropout rate: When customers can’t quickly find their preferred payment method, they feel unsure and may avoid making a decision. This increases the dropout rate.
- Longer checkout times: Browsing through a long list of payment methods takes time. Customers pause to compare and think, which increases checkout time and leads to second-guessing.
Completion rates: Too many unfamiliar payment options raise security concerns and confuse the user, reducing completion rates,
Streamlining Payment Gateways for Better UX
A cluttered payment gateway can overwhelm customers and drive them away. Make it easy for users to spot their preferred payment method without having to weigh too many choices.
Instead of listing every payment available, analyse your customer base. Prioritise the most trusted and frequently used payment gateways. For example, if most users prefer credit cards or digital wallets, highlight those options first. Place less-used methods in a dropdown or expandable section and avoid the rest.
Clarity is the key here. Try to make the navigation and flow intuitive so the customer can move through the checkout without friction. Use clear labels, familiar icons, and logically ordered payment options. Fewer distractions mean smoother checkouts and better results.
Global Vs Local Payment Preferences
Buyers are more likely to complete a transaction if they can pay in their own currency using a familiar payment method.
Each region has unique cultural, linguistic, and financial factors that shape how people prefer to pay.
Global payment gateways are widely trusted and accepted. They offer broad reach and security. However, local payment methods often outperform them in conversion because they align with local preferences. By providing global and regional options, you reduce friction, build trust, and improve conversions.
Global payment gateways:
- PayPal: Operates in 200+ countries.
- Stripe: Accepts 135+ currencies, offers powerful APIs, used by global brands.
- Worldpay: Works in 40+ countries, supports 120 currencies.
- Adyen: Offers 30+ currency options with a unified global platform.
Local payment gateways:
- UPI: Mobile-based real-time payments, widely adopted in India.
- Alipay: Leading digital wallet with strong local trust in China
- Klarna: Popular “Buy Now, Pay Later” option in Europe.
- iDEAL: Most used payment method for Netherlands shoppers.
Best Practices to Prevent Payment Gateway Fatigue
To avoid payment fatigue and create a smooth checkout experience, follow these best practices:
- Curate your payment options: Don’t overwhelm. Offer a carefully created list of the payment methods your customers use the most. Use data like success rates and transaction volumes to analyse payment gateway trends and streamline the experience.
- Use smart payment suggestions: Implement tools that automatically suggest the most relevant payment method. Tailor suggestions based on the customer’s location, device, purchase history, or saved preferences. This helps reduce choice overload and speeds up decision-making.
- Test and optimise the flow: Show your top 5–7 payment methods at the front. Place the rest in a dropdown or expandable section. Group similar options together, like wallets, UPI, or bank transfers, so customers can find their choice quickly.
Add helpful details where needed: Include short notes on key benefits. For example, zero-interest EMIs or instant confirmations. These small cues build trust and help users make more confident decisions.
Tools and Technologies to Help Optimize Checkout Flows
An optimised checkout experience depends on the right tools and technologies. Pine Labs’ payment orchestration platform streamlines the entire payment process, routing transactions, handling retries, and improving success rates.
Pine Labs also offers tokenisation to protect customer data during transactions, reducing fraud and increasing trust. The intelligent routing ensures that each payment takes the most reliable path.
Technologies to optimise checkout
These technologies collectively deliver a faster, safer, and more successful checkout experience.
- AI-powered payment selection: Shows the best payment method based on user behaviour and history.
- Adaptive payment options: Flexible payment solutions that split a single payment between multiple recipients, ideal for marketplaces or partnerships involving multiple vendors.
- User journey mapping tools: Analyse drop-off points and improve UX at every step of checkout.
Simplifying Payments for Higher Conversion Rates
A seamless payment experience helps boost conversions. While offering all of the payment options available may seem like a good idea, it may lead to decision paralysis.
To avoid this, keep your payment gateway clean and focused. It’s not about offering more choices but about offering the right ones. A simplified, user-first payment experience builds trust, boosts satisfaction, and drives more successful purchases.
Pine Labs Online makes payment management simple with 360-degree payment solutions, integrations, analytics, and Pine Labs One. Want to explore how Pine Labs helps ensure a seamless payment gateway UX? Talk to our experts now!
FAQs
How many payment options should I offer to avoid payment gateway fatigue?
Offer 5 to 7 prominently visible payment methods. Prioritise those most used by your target audience to reduce confusion, ensure clarity, and improve checkout conversion rates.
What payment options lead to the highest conversion rates?
The highest conversion rates are obtained from a well-balanced mix of international and regional payment options. To find a balance, analyse customer behaviour, location, and which platforms are mostly used.
Can I customise payment gateway options for different customer segments?
Yes, you can personalise options using intelligent tools that analyse customer location, device, and behaviour to show the most relevant payment methods and improve the checkout experience.