The move from traditional credit card and consumer-finance solutions to more customer-centric payment solutions has undoubtedly been accelerated by the pandemic. As we emerge into a new cashless era (cash payments declined by 16% globally in 2020) deepening customer engagement by leveraging data-driven payment solutions can help eCommerce businesses learn more about their customers and provide a checkout experience which has the highest chance of success.
Did you know it takes 22 clicks on average to complete an online purchase? With the increased adoption of one-touch payment methods such as digital wallets becoming more widespread, merchants that continue to use generic and laborious checkout processes are weakening their customer engagement and advocacy, and diminishing their competitive position in a rapidly evolving retail market. Empowering customers with frictionless card payment options can increase conversions and help merchants learn more about what their customer payment preferences.
Access to real-time transaction reporting and data analytics means retailers can benefit from intuitive insights to ensure they maximise profits. For example, utilising features such as country blocking, bank filtering & card blacklisting can help prevent fraud and maximise transaction acceptance rates. Dynamically responding to an authorisation reason code when a payment fails allows the merchant to use response logic to maximise conversion and an improved experience for customers.
Customers have become more security and time sensitive when making online purchases. To make the checkout experience more personalised and streamlined, merchants should use a Hosted Payment Page which reflects the design and look of their website, this can abate any customer concerns about unfamiliar-looking payment page redirects. Access to real-time card validation and built-in error messaging can also reduce friction at checkout for customers and indicate why a payment is not working.
Supporting payments via Apple Pay & Google Pay means customers can benefit from a seamless, secure payment process both in-app and on desktop. Digital wallets work with many of the major credit and debit cards from the leading banks on specific devices and browsers. These payment methods are also PSD2 SCA-compliant meaning merchants don’t need to utilise 3-D Secure before authorising the payment. Of course, customers who don’t wish to use these methods can still manually enter their card information, but by providing digital wallet options the checkout process can be optimised for customers who might be put-off by manual processes. Utilising digital wallets also maintains a high level of security for the merchant.
With cart abandonment rates for eCommerce stubbornly high, online retailers who utilise transaction data to build an understanding of their customers can make strategic decisions to improve conversion rates. Businesses who view payment acceptance of strategic importance can deliver real value to their customers experience and ultimately business growth when data is used effectively. Many eCommerce retailers lack visibility of their customers as they travel through the checkout process, by understanding this they can comprehend the benefits of using a payment provider/partner that can address (or simplify) these complex payment challenges.
Find out more about how Acquired.com can support your eCommerce store.