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The world is increasingly digital, and mobile.
By next year, the value of mobile payments worldwide will surpass $1 trillion.
For merchants, that means optimizing the design and function of a payments page and streamlining the entire payments process is even more important.
Following the best practices of companies like Amazon and Uber, payment should be ultra-convenient and intuitive.
Is your checkout process nearly invisible? Does it involve just one click? Is it country-specific and designed to keep costs down?
Consumers often abandon purchases if the payment process is cumbersome, or if their preferred payment methods aren't available. Here are five ways to prevent that from happening, according to payments experts Edgar, Dunn & Co.:
With the significant growth in mobile commerce, optimizing payment page design is critical.
In fact, Adyen research suggests that consumers are more comfortable spending higher amounts on larger devices.
This means merchants should offer a dedicated interface for each type of device, so that consumers don’t struggle to see, for example, the whole range of payment options on a smartphone.
For example: according to Adyen data, in China only 1% of shoppers pay with international credit cards; and in Germany less than 25% of shoppers use credit cards for online purchases.
Considering this, it is increasingly important for merchants to offer more ways to pay, especially if they want to appeal to a global market.
In the chart below, you can see which local payment methods account for the highest percentage of transactions in each country.
Most global merchants will end up with some combination of local and international (or cross-border) acquiring, but adopting local acquiring approach nearly always has a positive impact on authorization rates.
Though this varies by market, a merchant will typically see as much as 0.5-0.6% in uplift after transitioning from cross-border to local acquiring.
Payment data is a valuable tool to increase revenue and reduce costs, and merchants should use the analytics and insights drawn from it to their advantage.
On average, 5-15% of ecommerce credit card transactions are declined by issuing banks, and of those declines, 25% lack valid reasons, usually due to old and inefficient systems.
But a good payment partner can reduce the number of declines by optimizing the data submitted, suggesting corrective changes to the issuer, or identifying a better routing for a given transaction.
But many of these systems, especially the more conservative ones, are also blocking genuine transactions.
This prevents legitimate shoppers from checking out and yields a net loss in revenue (the so-called “false positive” problem).
Risk management is both a science and an art, and it is important for merchants to find the right balance between security and conversion.
Below, you can see the impact from Adyen's RevenueProtect product on an actual Adyen merchant.
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