Despite economic uncertainty in the US and Europe, lower oil prices and negative currency movements, e-commerce sales during this past November and December managed to exceed $110 billion in the United States. Why does this matter?
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Online customers expect quick, convenient and secure services, increasingly tailored to their needs and preferences. E-commerce brands that can deliver will win and payment providers will be playing a vital role in this space. An effective payment solution can support revenue optimization and customer satisfaction. Here are three things to consider going forward.
Security Innovation: Biometrics and Selfies?
Cyberattacks are on the rise. ATLAS, a collaborative network of 330 online service providers, have recorded 124,000 cyber attacks per week over the past 18 months, a 73 percent increase in 2015 volumes. When shopping online, 17 percent of consumers will abandon a cart if they are unsure about security, according to Statista data. Cart abandonment rates are on the increase, currently at 69 percent, according to the most recent figures from The Baynard Institute, based on 37 different studies.
Do you really want to miss out on customers because your security was not up to scratch? At a minimum, a payment provider needs PCI DSS security compliance. Taking security to the next level means exploring new options, with fingerprints a popular new choice, especially for Mcommerce retailers. Selfies are another option, with MasterCard trialling ‘Selfie Pay’ in Europe since 4 October 2016.
For e-commerce brands with over 50 percent smartphone traffic or those with a Millennial customer base, you should evaluate security options that reduce risk and serve your customers needs more effectively.
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Reduce fraud and chargebacks
Fraud liability has shifted over the last few years. Now, since EMV rollout in the US, the liability – and potential impact of chargebacks – rests with the party with the weakest security. Merchants could easily find themselves responsible for fraud, which also falls on the payment providers to ensure that those charges don’t impact their clients.
There are numerous ways to prevent fraud and mitigate the risks. All e-commerce transactions involve a Card-Not-Present (CNP) situation, which traditionally, is higher risk. By ensuring your payment provider puts basic measures in place, including an Address Verification System (AVS) and Card Verification Value (CVV) – the three-digit code on the back of a card – are vital for reducing the risk of fraud. It is also worth signing up to 3D Secure, an authentication system operated by Visa, MasterCard and other major card issuers.
Continuously refine the checkout process
Extra steps, unnecessary input fields and unexpected costs reduce conversion rates. Right now, 69 out of 100 web visitors abandon carts. E-commerce brands that succeed work with payment providers to ensure the checkout process for guest shoppers and account holders is smooth.
Test and test again, on every device. Spot a problem or something that keeps tripping customers up? Solve it. Every extra conversion is more revenue. When it comes to your checkout – especially on mobile devices – never stop measuring and optimizing.
This article was written by Artem Tymoshenko, CEO of Maxpay LLC.