Adyen retail report: The checkout experience
Have you ever abandoned an online purchase?
This is a missed opportunity. You’ve invested in these customers: Attracting their attention, bringing them to your site and persuading them to hit 'Buy'. Losing them at the checkout isn't only a lost sale, you've potentially lost a customer for good.
But don’t worry. Cart abandonment is often the result of minor issues that are easily fixed. And it's worth it; optimizing your checkout will increase your conversions and boost your revenue.
The payment process is the one thing standing between your customer and that moment of gratification. Make sure it’s quick and painless.
Redirects can be fatal. They add complexity to the process, especially on mobile when load times or (worse) timeouts can be a real problem. They also cause confusion, leading customers to question the security of your site.
The solution is to host the entire payment flow on your site. This not only eliminates the redirect but means you have total control over branding and layout. This is important to establish trust with your shopper, and trust helps drive conversion. On top of that, since everything takes place in your environment, you can use conversion analytics and A/B testing to make sure the process is optimal.
With Adyen Checkout you can accept cards and local payment methods directly from your site. By embedding Adyen-hosted fields into the page you can capture sensitive data without worrying about PCI compliance.
Customers can feel alienated if their preferred payment method is not listed.
If you’re operating internationally, or you're planning to do so, it’s important to accommodate local payment preferences. Credit cards might be popular in the US, the UK, and Australia, but in Brazil, 15% of online payments are made with Boleto; in China Alipay and WeChat Pay account for 50%, and in the Netherlands, iDEAL dominates by 60%.
Apple Pay and Android Pay enable quick, secure payments. And, because of their strong authentication methods, authorization rates are usually higher than for normal card transactions.
Adyen Checkout can dynamically serve up a targeted list of payment methods to customers based on their location, device and basket value (amongst other things). And, since all payment methods are available on the Adyen platform, adding new methods is as simple as flicking a switch.
Mobile accounts for almost 47% of online payments globally on the Adyen platform. In markets like Asia and LATAM, many consumers are mobile-first.
So you’re missing a trick if you don’t assume your customers are paying from their smartphone. Minimize the required fields and number of steps, and make data input easy, with large buttons and clean layouts.
Below is a great checkout by Adyen customer Daniel Wellington:
Entering payment details is the least fun part of shopping, so why ask your customer to do it more than once?
Best practice is to offer your first-time customer the chance to save details for future purchases, which they authenticate with a password, CVV or fingerprint.
Adyen makes this easy by capturing payment details during the first purchase and issuing you with a secure token that you can use to charge future purchases. Loyal customers can speed through the process, and you don't have to worry about storing sensitive data on your servers.
Fraud is expensive. A report from Juniper Research predicts that retailers will lose US$71 billion from fraudulent CNP (Card-Not-Present) transactions over the next 5 years.
Naturally, it is tempting to ramp up your risk settings to keep fraud under control. But this comes at the price of blocking legitimate customers (known as false positives).
So how do you get the balance right?
Secondly, to sweeten the pill, 3DS 2.0 comes with improvements to the experience: The clunky redirect will go, and customers can authenticate themselves with a tap of their finger.
Adyen applies 3D Secure dynamically, using a rules-based approach that draws on real-time data. Adyen customers have automatic access to our built-in risk management system Adyen RevenueProtect. This includes behavioral-tracking tools to defend against attacks like card testing.
No fraud team? No problem. We’ll walk you through the risk settings and provide training as needed.
With Adyen, you don't just get beautiful checkout flows, you get access to the full power of the Adyen platform. So you can manage risk, increase your authorization rates, and use our data to optimize the process every step of the way.
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