Improving The Online Buying Experience
How Payment providers can improve the online buying experience?
The online buying experience represents a major opportunity for payment providers today. Considering the growing number of digital channels and buying platforms, e-commerce transactions consequently follow the same upward trend. The online buying experience comprises not only site navigation through goods and services, but also the checkout process. This is also where the challenge is the biggest from the merchant’s perspective, with the abandonment rate being vital during this phase. Indeed, checkout processes require a huge number of tasks such as account creation, card numbers and often 3D, which all act as roadblocks along the consumer buying path. These obstacles resulted in an estimated sales loss of $236 billion for the first quarter of 2018.
To target those issues efficiently, payments providers should tackle the following points:
Simplify and harmonise authentication:
Authentication is one of the key drivers in loss of sales. Indeed, having a complicated and time-consuming authentication phase greatly increases the chance of losing your customer, resulting in a sales loss. Considering that PSD2 regulation is adding more safety steps into the process, it is crucial to focus on this aspect and lower the hurdle.
Some companies have already created one-click solutions to facilitate the reduction in length of the purchase process. Biometrics are also an emerging way to tackle the issue efficiently, in particular for mobile purchases. But what seems to be the most promising development, is an established authentication standard that would be used by each and every one of the e-commerce actors. An initiative has already emerged: The Secure Remote Commerce. Created to provide a unique “buy” button across card networks, merchants and channels, it would offer an industry wide authentication standard that would avoid making customers juggle with multiple authentication processes.
Inject new value into the buying journey:
It is also crucial for payment providers to differentiate themselves from competitors. It goes from simplifying the purchase experience to offering different innovative features such as an automatic purchasing phase, personalized recommendations for the merchants, or flexible and instant payback terms in order to improve the post-purchase experience. Providers need to guarantee the customer that the process will be smooth and easy in all situations, whether the client is satisfied with the purchase or not.
Reinforce leadership in card-on-file payment:
During the purchasing phase when customers land on the checkout page, you will often find that credit cards are already preselected, meaning that the choice is often made by default. The main issuers are already well connected with the merchants, especially the big ones, making it tougher for small players. This is yet another important battle to fight for.
Embrace the move to online financing:
Considering the fact that people are becoming more and more confident in making high value purchases online, there is and will be an increasing demand for online financing means. Issuers, merchants and acquirers need to work together closely to provide efficient and competitive credit solutions to increase the transformation rate.
Develop Payments solutions that work globally:
Consumers are attached to payment methods that are familiar to them. When they get used to one in particular, they tend to use it whenever the checkout page allows them to do so. With e-commerce becoming more and more global, it is essential for payment providers to offer as many local payment methods as possible, related to the country the consumers are in. This also explains the growth of cross-border payments solutions providers.