Simple Payment Option Boosts Bookings 25% on Letgo Like App
Our mobile app aims to make local marketplace transactions easy and hassle-free. Users can buy and sell items to others in their community. However, we noticed that while many users were browsing listings, few were ultimately purchasing items or booking services. Our goal was to drive more transaction conversions to help enable more commerce on our platform.
After analyzing our checkout and payment flows, we realized many people were abandoning their purchases after reaching the payment screens. The options at that stage, like PayPal or entering credit card information, required too many additional steps and barriers. We wanted to find a simpler payment method.
This blog post details how we increased our booking numbers by 25% simply by adding a new payment option during checkout. By streamlining the checkout process and reducing friction, users converted to customers more easily.
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Previous Payment Options
Previously, the only payment methods we offered on our platform were major credit/debit cards and PayPal. While these are popular and widely accepted choices, they did present some issues for driving conversions:
Credit/debit card entries required filling out billing names, numbers, security codes and expiration dates. This was too much friction for many casual buyers.
PayPal still required users to have an existing PayPal account or go through the steps to create one. Many users balked at this additional barrier.
International users sometimes encountered compatibility issues, as not all cards or PayPal accounts function seamlessly across borders.
Abandonment rates at the payment screens were high, according to our analytics. Clearly these options were still preventing too many potential sales.
We wanted a simpler, faster payment method integrated directly into our own checkout screens to ease the purchase journey. But finding the right option took some exploration.
Idea to Add New Payment Option
To address the issues with our checkout experience, our product team started brainstorming easier payment alternatives. Some ideas considered included bank transfers, digital wallets, and e-checks/checking payments.
We landed on implementing an electronic check/ACH payment option since it offered several advantages over the others. E-checks are straightforward debit transactions directly from a user’s bank account. This avoided the need for lengthy credit card forms or third-party account creations.
Plus, e-checks are nearly universally supported by banks worldwide. They process similar to normal online bill payments that many customers already use. And the perceived risk is lower than paying by credit, which we hoped would increase trust and conversions.
After vetting service providers, we chose to integrate the payment infrastructure and SDK from a leading online checking payment company. Their APIs made it simple to overlay the e-check flow into our existing checkout screens.
Implementing the New Payment Option
With the platform and partners selected, our engineers got to work building out the e-check payment feature. Here were the key steps:
User Interface and Integration
First, wireframes were created for how the e-check form and verification process would visually appear within our app’s checkout flow. This included fields for entering bank account and routing numbers.
Developers then incorporated the new payment provider’s APIs and SDK to technically integrate the e-check backend. This allowed dynamically surface those wireframes as live functionality.
Testing and Tweaking
An internal testing period commenced to work out any UX/UI issues. Engineers ensured all form data and bank account validations worked as intended.
Network timeouts, error handling, and the overall payment confirmation flows were iteratively improved based on tester feedback. Minor styling and copy tweaks enhanced the overall experience.
Rules and Limits
With the core functionality in place, we also set appropriate risk-management rules. Daily and monthly payment limits helped prevent misuse while still being high enough for average purchases.
Requirements like account verification steps for new users increased security. And payment holds on certain high-risk orders minimized potential chargebacks.
Performance Tracking
Google Analytics and other tools were configured ahead of launch to monitor KPIs once users began opting into electronic checkouts. Goal completions, times on page, and error rates were among the metrics watched most closely.
Launching and Analyzing Results
With testing complete, we were ready to start promoting the new e-check payment method publicly. Initially, it was made available alongside the old credit card option during live site testing.
Gradual Rollout
A gradual rollout approach helped us watch trends as awareness increased. The option was slowly unhidden to more users over a 2-week testing window. This allowed pausing expansion if any major issues emerged.
Measurement Period
For the next month after full release, we dug into usage data and transaction insights. Key metrics like conversion rates, order values, times on site and across sessions were all automatically tagged.
We compared this post-launch window against historical norms and trends from the soft launch control period. Any changes could be more definitively attributed to adopting electronic checkouts.
Results: 25% Boost in Bookings
The results were clear – introducing e-check payments as a simple alternative drove major improvements across our platform:
Overall booking/transaction volumes increased by 25% month-over-month after launch. This exceeded our most optimistic internal targets.
Specifically, the e-check payment option accounted for over 40% of completed checkouts during its first month. Users strongly gravitated towards it.
Conversion rates, meaning the percentage of site visitors that led to sales, grew 15% thanks to the reduced friction of electronic checkouts.
Abandonment in the ordering process fell 9% once users reached payment. The simpler options drove more to completion.
Average order values grew modestly as well, suggesting users felt more confident purchasing with e-checks.
We were thrilled by these outcomes, which showed removing barriers and simplifying the purchasing journey significantly boosted our business metrics across the board. The time and effort put into launching e-checks paid off manifold.
Customer Feedback and Survey Results
To understand user sentiment around e-check payments more qualitatively, we conducted a post-launch survey of recent purchasers. The feedback was overwhelmingly positive:
90% said they found the e-check option easy and convenient to use compared to other payment methods. Speed and simplicity won the day.
80% would be likely or very likely to use it again for future transactions, highlighting strong intent to reuse.
Common comments described it as “stress-free”, a “breeze”, and taking “half the effort” of filling cards or PayPal.
International users in particular appreciated its compatibility with domestic banks versus relying on credit cards abroad.
This user research reinforced why the option drove such a boom – by solving checkout friction, we satisfied customer needs for fast, simple commerce on our platform.
Impact on Conversion Rates
Breaking down the before-and-after analytics provided valuable insights into how e-checks specifically improved conversion metrics across our site:
Increased Sessions to Orders
We saw a 14% lift in the conversion of total user sessions into completed orders after implementing electronic checkouts. Clearly it helped more casual browsers become buyers.
Reduced Abandonment
As mentioned earlier, abandonment rates fell 9% once users reached our payment screens with the new option available. People felt encouraged to follow through.
Shorter Checkout Times
The average duration spent on the payment and confirmation pages decreased over 13% with e-checks. Faster completions kept engagement high.
Steadier Mobile Conversions
Notably, conversion improvements on mobile were even stronger at 19%. E-checks streamlined the process on smaller screens perfectly.
This data revealed the positive ripple effects – from increased traffic converting to purchases, to faster transactions keeping customers happy and engaged throughout the process. Every brand wants optimized checkout journeys, and this proved a highly effective approach.
Ongoing Refinements and Tests
Of course, we continued refining the e-check experience after launch based on learnings:
Based on customer service volumes, we simplified account validation rules to ease friction but maintain security.
A/B tests compared subtle optimizations like form field ordering and labeling that drove marginal lifts.
Dynamic currency support streamlined international payments without extra steps.
Integrating identity verification for high-risk orders balanced risk versus conversion impacts.
We also experimented adding related value-add services powered by our payment partners, like invoice payments and B2B transactions. Continuous small tests help fuel never-ending improvements.
Overall volumes remained sustainably higher than pre-launch levels even six months later as we worked to perfect the experience. Steady optimization helps retain those results long-term.
Rollout to Other Markets/Products
Naturally, we wasted no time sharing the success of e-checks company-wide:
Similar integrations were rolled out to our other shopping verticals and geographical marketplaces. Early signs pointed to carryover gains.
Partnering with other comparable startups showed the option to them as a potential lever to boost business. Revenue sharing deals made wins for all.
Our consulting services began advising other merchants on the strategy, citing the strong quantifiable ROI case studies.
Introducing new digital wallet integrations drew upon learnings to find the optimal blend of options without hindering simplicity.
Lessons Learned
Implementing e-check payments taught us valuable lessons about optimizing the checkout experience:
Simple options drive the most conversions. People want fast, hassle-free purchasing. E-checks streamlined payment to one quick step.
Friction kills intent. High abandonment showed previous flows frustrated users. Removing barriers empowered casual buyers to follow through.
Data guides decisions. Analytics revealed exactly where friction occurred, informing the solution. Continual tracking helps refine processes.
Speed matters. Faster checkout keeps users engaged and satisfied and increases lifetime value. Short form factors boost mobile conversions too.
Tests prove hypotheses. Gradual rollout and experimentation proved the concept without full risks. Data then determined further optimization paths.
Share wins collaboratively. Partnering advanced our goals while helping other merchants. Win-win relationships drive scale through the ecosystem.
Overall, this experience underscored that small UX tweaks can yield major gains when informed by customer needs and behavior. The most impact comes from removing obstacles together.
Build a Letgo Clone? Choose Zipprr for Advanced Payments
For entrepreneurs and startups looking to build a trusted local marketplace platform like Letgo, Zipprr offers a unique Letgo clone solution. As a leader in embedded financial services, Zipprr provides not just basic e-check and card payments, but advanced integrated options as well.
Some key advantages of working with Zipprr include:
Wide Range of Payment Methods – Beyond the standard choices, Zipprr supports buy-now-pay-later, invoicing, cash collection and more.
Built-in Fraud Prevention – Sophisticated tools like ID verification, address confirmation and transaction monitoring protect sellers and buyers.
Refine User Onboarding – Seamless KYC/AML flows onboard new users quickly while maintaining compliance.
Manage Subscriptions Simply – Recurring and subscription payments are straightforward to set up and manage.
Scale Globally – Zipprr’s cross-border capabilities allow local marketplaces to expand internationally easily.
First-Class APIs – Developing customized integrations is simplified thanks to Zipprr’s RESTful APIs and SDKs.
Dedicated Success Team – Ongoing client support helps optimize integrations and gather ongoing market insights.
By leveraging Zipprr’s fully integrated suite of embedded financial services, clone developers can launch a Letgo alternative with world-class payment processing built-in from the start. This helps local commerce platforms hit the ground running towards long term success.
Conclusion
Introducing electronic check payments as a streamlined alternative to credit cards increased our monthly booking numbers by an outstanding 25% compared to prior trends.
By reducing friction in the checkout process, we significantly boosted key metrics like conversion rates, reduced abandonment rates, and increased customer satisfaction. The investment to implement this simple new option paid dividends in growing our business.
Going forward, our payment strategy focuses on continual tests that maintain quick, easy commerce while ensuring security. Additional partnerships will explore adjacent value-added financial services.
Most importantly, this success reaffirms our mission to craft experiences that convert casual users into repeat customers and true fans. When transactions are seamless, platforms can better enable commerce across every community.
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