When to ask for payment information?

Question

I am looking to improve the onboarding & initial experience for users of a mobile app. It already includes a basic signup form (email, password, first/last name), phone # verification, and an onboarding slideshow before the actual content/functionality of the app.

Where would cause the least amount of friction/be more user friendly: Request users to add their credit card during profile setup, or on checkout when they are placing an order?

Answer 1

Before asking for payment info, make sure you've done these things:

1. Convert the user. Convince them that whatever it is you're asking them to pay for it worth the money.
2. Show the user all the accepted payment methods.
3. Tell the user exactly how much will be charged to their card and what the terms are. If needed, break down the charge to show things like shipping, taxes, and fees.

After they pay:

4. Let the user know what to expect
5. Send a confirmation email
6. Explain how to contact someone if the user has questions

Overall, wow the user by giving them as much as you can before asking for cash. Delay that step for as long as possible.

Answer 2

Asking the user for payment information during onboarding could cause a huge drop-off in conversion. Coming to the app for the first time, users need to feel that they can trust you; this is probably a little too early for them to feel comfortable giving up their payment details. What if they don't want to purchase anything? They might just be here to explore your app and use some of it's other features.

It would be much more relevant to ask for payment information at the point where it is needed i.e. when making a purchase. You could always offer to save the details so it's quicker to make a purchase next time or offer something like Apple Pay.