For security, payment tech providers need to think like retailers
Consumers want a payment experience that offers both security and usability. If they don’t get this when paying for something online, they will abandon the transaction, with implications for a merchant’s sales figures.
A recent Intrapay study into consumers’ online shopping experience highlighted the importance of getting the balance right between security and convenience. Some 90% of the 650 respondents flagged safety as their biggest concern, while four in 10 said convenience was key.
So how can PSPs help merchants eliminate this risk? Does a payment company’s brand have a role to play?
After the widely reported payment data breach at Target in the U.S. in 2014, it’s clear that a payment brand matters. Consumers are more aware than ever before of the dangers of shopping both in-store and online — they want the reassurance that their money is safe, and a strong brand is central to this.
Payment companies, therefore, have a responsibility to both merchants and consumers to emerge as brands in their own right, with values that resonate not just with the businesses they are supporting, but with the customers using their services.
There are plenty of payments brands with a strong consumer profile, like PayPal, Adyen and Klarna. Such companies are duty bound to build their consumer image, establishing their brands as leaders in secure and convenient payments. This way, they can help merchants to maintain their own brands in the eyes of consumers.
Building a payments brand takes more than marketing. Processors need to “do the do” and enhance their services to optimize security and convenience for users, while showing merchants that their solutions actually reduce cart abandonments.
Innovation in the payment interface is key. We need to peel layers away and make the whole interface instant, secure and friendly, avoiding complicated passcodes that add unnecessary friction.
Simple developments, like single click payments, biometrics and other new processes can go a long way toward improving the consumer experience when making purchases, and strengthen a payment company’s brand at the same time.
Payments are vital to the consumer online experience. Merchants need to have a payment system from a brand known for security and convenience on their sites to attract consumers and increase conversion rates.
A strong payment brand doesn’t evolve spontaneously, however, it takes time. Talking to retailers and consumers to understand their requirements, and committing to innovation are key to building a solid profile. Taking these steps will go a long way toward creating a safer, frictionless e-commerce space in the future.