Mobile share of local payment methods approaches 50 percent
But due to hesitation on the part of merchants and a lack of data-backed insights on how to best approach the changes, most businesses have failed to take full advantage.
With only two weeks to go till the August 1 2017 final transition deadline to switch from local Direct Debit Schemes such as ELV and the Dutch Direct Debit to SEPA Direct Debits.
Adyen looked in to recent data made available due to an acceleration in SEPA adoption over the past 12 months to analyze exactly where it is that businesses are facing the biggest challenges.
Based on this research, we have created this list of key actions that businesses should take.
With SEPA, shoppers have a ‘no questions asked’ refund right valid for 56 days. The majority of shoppers do not seem to be utilizing this widely.
However, for markets such as Germany where this right is more commonly used, merchants are advised to consider activating a signature field on the payment page.
Merchants can now select a bank in any country of the payment area where international SEPA payments can be transferred.
So it is wise to take advantage of this opportunity to shop around and choose the financial institution that offers the best cost-benefit ratio for your specific requirements.
The introduction of International Bank Account Numbers (IBAN) and Bank Identifier Codes (BIC) has had a negative impact on shoppers’ payment conversion because many shoppers are still unaware of their IBAN, and bank cards often do not have a visible BIC.
To minimize the risk of conversion reduction, merchants are advised to validate the IBAN on the checkout page.
A significant number of merchants are still cautious about SEPA because the advantages it presents are not always obvious.
But it is worth remembering that with the new regulations, cross-border transactions are settled faster, costs for non-domestic transfers are decreased, and accounts can be debited across Europe.
This improves cost efficiency and international transaction speed, and particularly benefits businesses that have international customers and service providers.
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