The importance of choosing the right payment integration for your site.
The importance of choosing the right payment integration for your site is often over looked or mis-understood. In this post, we wanted to put some focus on the sometimes neglected area of the payment provider or gateway.
Time after time, the decision on an online payment solution is driven by the finance team, the businesses bank or purely based on the best commercial offering available. Of course these areas are all important, but they aren’t the only things to consider as an online merchant. Below we look at some of the other areas to consider when choosing the best fitting payment solution for your online operation.
Customers expect a slick and easy to use transaction as a whole when shopping and as a retailer this should be your number 1 priority as far as payments are concerned. We don’t quite have the speed and convenience of ‘contact less’ payments within the digital space, but there are some solutions that come very close.
If you want to try and retain engaged and loyal customers, gone are the days of forcing customers or potential customers to have to type all of their card details into a page that isn’t really on brand with the rest of your site and displays an odd looking ‘loading’ or ‘please wait’ icon after they have submitted their payment details. All of these issues are amplified in the mobile experience where a slow performing process can mean the difference between a sale or a lost sale but more importantly, customer who is far less likely to return.
So picture this scenario. You have created a killer customer acquisition campaign be it organic, PPC or referral. You’re happy with the up-front cost of acquiring these leads and have spent considerable time and effort in optimising your product or category pages to make sure you can convert as many of these leads to a sale as possible. All going well thus far… The customer then gets to the payment process. oh dear; your vanilla branding of the payment page that has been supplied by the payment portal with little re-assurance to the legitimacy and security of customer data has blown the whole plan as the customer abandons the site favouring an alternative option.
The above sounds obvious, but there are so many retailers & brands still in this position, with the payment process seen as more of a necessary process rather than a key part of your conversion customer journey. With cross border trade on the rise and more and more transactions carried out every day on mobile devices, ensuring you have the customers trust is key to the process.
There are many ways of achieving this trust by looking at leveraging the trust of respected consumer brands from services such as Amazon Pay, Klarna, and PayPal amongst others. Alternative options are to look at a payment gateway solution that provides the convenience of a single technical integration into your site but allows you to accept payments via a multitude of methods.
Knowing your Customers
We touched on the point of cross border sales in the point above. This is an area where getting the correct payment option is make or break point! We are engrained here in the UK with payments via our Visa, Mastercard, Amex or similar methods. But to quote a popular 70’s American TV show theme tune “The world doesn’t beat to the sound of just one drum; what might be right for you; may not be right for some“. With payments this is particularly pertinent.
Germany is the second largest market in the EU for eCommerce and a great case in hand where most payments are made via channels that process direct payments on account and then seconded by Paypal over any card payment.
Other countries within the EU, prefer a model of pay on receipt for their goods. This is where a system such as Klarna really can help with the added bonus of allowing consumers to pay for larger price tag items in instalments without the traditional credit check & agreement.
Many other countries also have their own nuances. Getting this wrong or not offering the correct options could be a costly mistake.
Tech, Fraud & Liability
We would always advise understanding the processes in place for fraud prevention and how this can effect your liability as a retailer. nothing is a straight forwards process of blanket cover and even the current 3D secure model can still leave the retailer liable for any chargeback in the event of a fraudulent transaction taking place.
Several leading payment gateways are now using Artificial Intelligence (AI), and machine learning to help prevent fraud or at least improve your acceptance rate of transactions. Key players in this field are Amazon Pay who are leveraging the payment engine logic from Amazon’s own web sites and their huge transaction volumes to then be able to offer the payment system on a 3rd party retailers site. This also forms part of the trust element mentioned above. Adyen also have made great in roads to this process.
No More Merchant Processing Fees
Several of the above providers mentioned also have full banking licenses. The main huge advantage of this to the retailer is of commercial benefit. The banking license means that the payment provider can carry out tasks such as currency conversion & bank to bank transfer whilst being able to settle funds direct to the merchants bank account. This removes the need for previous charges from banks on processing online payments via their merchant services on top of the initial transaction fee charged by the online payment system. Game changer for retailers processing large volumes!
The payments space is very fast moving. Here in the UK we are very lucky to have London as one of the financial tech hubs of the world with many online payment services having a footprint here.
Please reach out to us if you feel you aren’t getting the best from your current payments solution or if there is a particular challenge you are looking to overcome. We have a vast experience in this field and have spoken at several large international eCommerce events on behalf of several of the payment providers mentioned above from a retailer perspective.