Solving the puzzle of payment methods

Expand the offer of payment methods; secure on-line transactions; simplify the act of purchase. The challenge for retailers is proving to be a real headache. How can we rise to this challenge?

OVERVIEW

Adapt the offer of payment methods to consumers

The omnicommerce booklets Business Challenge #2There is an endless queue at the till, a bug on the on-line payment platform, a refusal of a means of payment... the "annoyances" associated with the act of purchase are innumerable and all lead to many abandoned shopping carts. A considerable loss of revenue for retailers even though the desire to purchase was indeed there. For example, according to research specialist Connexity, only 11% of consumers in France who abandoned their shopping cart did so because they actually changed their mind. One indicator of the extent of this loss: according to the publisher Ve Interactive, in French retail, the average value of abandoned shopping carts in 2016 reached 92 euros. For payment, the stakes are clear. It is a matter of making the purchase as easy as possible: limiting the number of on-line clicks and reducing - if not eliminating – waiting time in stores.

Payment is crucial for retailers. They must propose a variety of clear, appropriate, secure, simple and fluid payment methods. What is more, Chinese consumers visiting Europe have different payment habits from Europeans. Therefore, retailers must offer them their preferred method of purchase: mobile payment. According to a survey by Tencent, 68.8% of Chinese people have already paid for an in-store purchase with their mobile phone (via WeChat Pay or Alipay). In short, customisable payment.

REFERENCE POINT

Between 16 and 30% is the average abandonment rate on the payment page of an e-commerce site

The percentage of consumers abandoning their buying journey on the payment page is considerable. A payment method that is not proposed, confusing information, hidden costs... there are many reasons for these abandonments.
(Source: Payment methods barometer 2015 conducted by Converteo & B2Bill)

Beyond fluidity and variety, retailers face another challenge: security. Even if the ball is not always in their court to secure new payment methods for instance, they must set up measures to reassure consumers: 3D secure, combating fraud, a secure payment interface...

TAKING UP THE CHALLENGE

Make on-line and off-line payments smoother

First challenge: to optimise the receipt of payment in-store. For this, the methods exist even if they are not yet fully exploited. Self-scanning is already widespread in retail outlets, but retailers have to take things further. Scanning and payment for items with the customer’s smartphone, paperless receipts (as suggested by many start-ups), RFID tags on products... there are many solutions, but the first step is to realise the full potential of the smartphone, whether it be for the receipt of payment on the seller's device or the scanning of the products by the consumers.

On-line, the challenge is the same. The retailers should remove "annoyances" that hinder the purchase, by offering a wide variety of payment solutions (coupons, debit, credit or loyalty cards, etc.) and avoid breaks in the process. Amongst other things, this can be achieved through pre-payment methods that avoid consumers having to re-enter their personal details several times.

What solutions can make the purchase easier and offer more payment methods?

  • A payment hub: in SaaS mode or as a building block added to the information system, the tool centralises the management of payments, and the security and evolution of the terms of purchase. It communicates information directly to different banks and PSPs.
  • A single payment service provider (PSP) offering a wide range of payment methods.

With these unified solutions, the problem of omnichannel payment can be managed simply and centrally. The key is a wider offer of payment solutions.

Solving the puzzle of payment methods

# Expert voice

Multiply payment, simplify purchase

"The challenge for retailers is twofold. They must both expand the offer of payment methods and streamline the act of purchasing both on-line and in-store. To do this, we must go further in terms of existing solutions: from self-scan to the smartphone as a payment tool, as well as RFID tags."
Pierre Gressier, Head of Distribution & Services Sector, Gfi Informatique.

# Gfi Solution

The centralised payment hub

The omni-payment component of the Gfi Omnicommerce solution centralises the management of payments, whatever their nature: credit, debit cards, gift vouchers, etc. A guarantee of security and simplicity, this payment hub is already used by the 3SI Group.

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