Beating payments fraud in 2020
Taking a mobile-first approach is simple: the consumers of the world are increasingly tied to their mobile devices. According to data compiled by the International Telecommunication Union, almost half of the world’s population (more than 3 billion people) are mobile broadband subscribers, and that number will continue to grow. The increased usage of tablets, smartphones, and other mobile devices has naturally led to the growth of mcommerce.
Transaction volumes on tablets and other mobile devices have increased significantly in Brazil, France, Germany, the UK, Nordics, and the US over the past year. According to Statista, worldwide mobile payment revenue will surpass $1 trillion USD in 2019.
More and more consumers are turning to their mobile devices and native mobile apps to shop. As such, the question now facing businesses large and small is not “Why mobile?” but rather how best to optimize the mobile customer experience to increase checkout conversion.
With the significant growth in mobile commerce, optimizing the design of the payment page for mobile devices has become even more important. iPad and Android tablets tend to see higher average transaction values than smartphones (Android, iPhone, or otherwise) across different countries. This suggests that consumers may be more comfortable making expensive purchases on large-screen devices.
To enhance the customer experience and improve conversion rates across multiple mobile devices, you should offer a dedicated interface for each device. For example, consumers should not struggle to see the whole range of payment options on a smartphone. You should implement responsive design (i.e. fully dynamic payment skins that automatically detect the screen size of the device used by consumers and adjust accordingly).
The emergence of mobile apps has driven the need for specific payment solutions that deliver a convenient and seamless in-app payment process. For instance, in some emerging markets where internet infrastructure may be unreliable or slow, creating a low-friction purchasing experience means accommodating that reality (e.g. reducing the number of images downloaded or developing a retry strategy).
When it comes to the payment flow, consumers in many markets prefer the ease and simplicity of a “1-click” or “1-touch” model, wherein they enter their payment details once, during sign up or at the time of their first transaction. That information is then stored securely within the app, and for subsequent purchases, they simply press the pay button to complete the transaction. This allows consumers to focus on the shopping process rather than on the checkout itself.
That said, in some markets, such a low-friction approach may give security-conscious consumers pause, eroding their trust in the transaction. A further consideration: the importance of swift and flexible customer service to respond to potential issues. Amazon, for example, allows customers to cancel orders that have not entered the shipping process in case they change their minds or have made a mistake.
Another development in the domain of convenient in-app payments: wallets provided by major device manufacturers (e.g. Apple Pay, Android Pay, Samsung Pay, etc.). With these solutions, the card information is securely stored on a shopper’s device, and those credentials are shared with the merchant after review and authentication (typically via biometrics or a passcode). Also, these solutions further enhance the shopper experience, making the experience of a card payment more convenient and intuitive.
In the mobile world, offering one click payments is essential. Consider the Uber experience, where the entire checkout process is “invisible.” At the end of a ride, users get out of the car without having to worry about paying. The fare is automatically charged to the primary card that the rider has on their account.
Establishing behavioral trends for individual users is a popular theme for advertisers, fraud-fighters, and user experience designers. But it is also a source of tremendous value in a merchant’s approach to payments.
For example, an online food delivery marketplace knows what a customer ordered at the same time last month, and can therefore confidently offer a single click flow for the same order made today. Holding onto and understanding customer preferences, and using that insight to continuously improve the checkout experience, is the kind of payments innovation that sets merchants apart, and turns customers into promoters, and brand loyalists.
Let’s take the example of iDEAL, which allows customers in the Netherlands to pay for their purchases online through a direct online transfer from their bank account. Because it is mobile-friendly, about 50% of those payments were made on mobile, and mobile apps that support iDEAL tend to have a higher conversion rate.
No only that but the Chinese payment method Alipay, with a reported 520 million active users worldwide in 2017, accounts for almost half of the $500 billion ecommerce market in China and has become extremely popular in markets where Chinese tourism thrives.
In today’s world, where mobile devices play a central role in virtually any traveler’s journey, Chinese travelers are used to easily checking into their flights, reserving hotel rooms, and shopping overseas, all from within the comfort of their mobile apps.
For merchants looking to expand into China or to better serve the growing crowd of Chinese tourists in other markets, Alipay is a must-have payment option, along with other local payment methods such as WeChat Pay.
The most effective payment page is one that reassures consumers about security. This happens by providing encryption details, by giving information about partners used to secure payment information, or by offering insight into how payment details may be used throughout the relationship. With increased media coverage about online fraud and data breaches, it’s no surprise that consumers are wary of sharing sensitive payment information.
Everything a merchant provides “behind the screen” (e.g. tokenization of stored payment data, 1-click flows for subsequent purchases, or even use of account updater) should be clear and transparent to the users in the FAQ section. This is part of the setup flow that helps reassure consumers, increase their confidence and encourage them to enter personal payment details.
As mobile usage continues to grow, creating a native in-app payment experience to increase conversion rates is essential. By offering local, relevant, and popular payment methods as well as a simple checkout processes means that you’ll easily increase checkout conversions.
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