Can mCommerce Solve the Conversion Crisis?

Gertjan Dewaele of Ingenico ePayments argues that “mobile shopping has established mCommerce as a key sales channel”

Put your mobile where your commerce is

The vast majority of merchants understand that mobile innovation affects customer satisfaction and profitability, but this awareness needs to be matched by action if they are to make the most of the mobile commerce opportunity. No merchant can afford to ignore the revenue-generating potential of mCommerce.

More than three quarters of UK shoppers use their mobile to make purchases online while commuting or travelling, and 45% browse in their free time. It’s a growing trend. UK consumers now spend twice as much time on their mobile device as they do on a PC or laptop, and the use of mobile apps for shopping is on the rise as well. 83% of time spent on mobile is app-related and more than half of that is spent shopping.

On the other side of the Atlantic, 40% of online purchases in the US were made on mobile devices in 2017, a 29% increase over 2016.

Taking a closer look at Europe’s largest economy, Germany, we can see that mobile commerce has been a slow burner, but consumers have begun using their phones to make online purchases in greater numbers. mCommerce in Germany now accounts for 12% of purchased goods. Ready for a boom, it is estimated that mCommerce volumes will increase by 39% and represent 42% of total retail ecommerce sales in the country by 2021.

Avoid abandonment

In spite of this burgeoning international mobile trend, many merchants are falling behind in trying to meet their customers’ expectations. Research by Ingenico ePayments and InternetRetailing found that only 57% of those active in sectors such as travel and gaming declared having a responsive website for desktop and mobile as their main focus. Just 39% described themselves as being ‘mobile first’.

The negative impact of this lack of innovation in mobile is becoming increasingly clear. Our research has found that 60% of all shopping carts created are abandoned before payment and that one in five consumers do not complete the payment process. The result is a considerable amount of lost revenue for merchants and large numbers of unsatisfied customers.

A smooth customer experience

Fortunately, there are several steps that can be taken to ensure that more of these planned purchases are completed. Investing in a frictionless mobile experience is a good starting point: although just over half of the retailers we surveyed are currently investing in this area, 40% intend to do so over the next two years.

Firstly, merchants should ensure their mobile site is localized, meaning consumers can pay how they like based on where they are in the world.

As well as this, they need to be aware of the importance of optimizing the payment page, from using a numeric keypad, to automatically format credit card numbers to detect invalid inputs. Cutting out unnecessary steps in the payment process will improve conversion rates. After some merchants found that 3D Secure was showing a potential to negatively affect their conversion, they utilized it only for high transaction values or enabled tokenization to provide a fast-track experience for returning customers. 3D Secure 2.0 will use advanced data analytics to help determine cases where additional security measures are required, reducing the barriers for the majority of consumers.

Finally, consider the options available. There are payment methods that work better on mobile, such as PayPal and Apple Pay, both of which are helping merchants to shift away from a sluggish system to an omnichannel future, in line with high customer demands.

Next level mCommerce

Of course, now that mobile is becoming mainstream, it doesn’t mean the environment stops evolving. Innovations are always on the horizon to stay relevant to consumers.

Already there is a new sales channel for consumers which is ideal for the mobile device: chatbots. This tool is seeing great success with Generation Z and millennials, yet just 16% of the internet retailers we surveyed were investing in messaging bots for conversational commerce. Seeing more consumers turn to this sales device is certainly likely, though, as more than half of those surveyed plan to enlist it within the next two years.

We expect this to soon become commonplace. With the first pilot results, we’ve seen a six-fold boost in conversion while using chatbots versus a mobile website. These bots learn patterns of behavior and can target customers, offering the products or services that would be of most interest – a level of personalization that leads to better conversion rates and higher customer satisfaction.

Another – often overlooked – avenue for conversion is the moment after the purchase. Following the transaction, a merchant can leverage this time to entice customers to purchase additional items or encourage their return. Providing a related product (insurance, for example) or offering smart discounts via gamification will maximize the conversion on the initial transaction and help create a loyal consumer base.

The future is within our grasp

We aren’t losing the in-store experience just yet, though. In fact, mobile may be the key to revitalizing a practice that has fought a losing battle in recent years. We’re seeing a number of ‘scan and pay’ projects creeping into the market, which are using mobile devices to drive a better in-store user experience – and boost completed transactions in the process.

It’s clear that the sheer convenience of mobile shopping has established mCommerce as a key sales channel, which means that merchants have to optimize their mobile site and payment processes in order to be in the sales game.

Source: The Paypers – http://bit.ly/2C7xDJe 

What is a payment gateway and why do I need one?

Are you ready to grow your business online? Payment gateways are an essential step to maximising your online revenue and reaching more customers. For those who might need a little refresher on what they are and how they work, take a read of the following article outlining some key points and benefits of a payment gateway to online businesses.

What is a payment gateway?

A payment gateway or third-party service creates a connection between your ecommerce platform and your bank in order to take payments from customers online. Payment gateway software securely authorises credit card payments through the deployment of encryption, allowing sensitive information to be passed from customer to merchant to bank and back. As a security standard, businesses must have a payment gateway or third-party service in order to accept payments online.

How does it work?

The payment gateway sends credit card and other private data between parties in a secure manner to ensure all information is protected while a transaction is being processed. To complete this process, the payment gateway completes a range of tasks within about 3 seconds. To demonstrate the process in action, let’s take a look at how it all plays out.

  • Becky has decided to buy a shirt through an online store. Once she’s happy with her choice, she adds the item to a shopping cart and heads to the checkout page.
  • The website will open a secure payment page where she enters her credit card details to place the order.
  • The payment details are transferred securely from the payment page to the payment gateway.
  • The payment gateway will encrypt her credit card information and pass it on to the merchant’s bank to be authorised.
  • The merchant’s bank will decide whether or not the transaction should be approved based on a number of factors (whether Becky has gone over her credit limit, whether the card is legitimate, etc) and passes this information back to the payment gateway.
  • If the transaction is approved, the payment gateway will notify the merchant and the customer that payment has been accepted.
  • If the transaction is denied, a message will appear on Becky’s screen notifying her that the payment was declined, and the transaction has been disregarded.

The benefits of a payment gateway to your business:

Although there are a number of alternative methods available for taking payments online, having a payment gateway provides a range of unique benefits to ecommerce businesses. Some of these key benefits include:

Secure payment processing

Data security should be the number one priority for any business. Payment gateways offer the ability to take protected payments via industry-standard encryption technology. With a reputable payment gateway, customers need not worry about their credit card or personal information being intercepted and used without authority. Payment gateways protect both merchant and customer against identity fraud. 

Accept payments instantaneously

With a process taking less than 3 seconds, payments can be accepted online in real time. This means that customers don’t need to wait when purchasing their goods and merchants don’t need to wait for payments to be received.

Enable international purchases

With the ability to process transactions in multiple currencies, payment gateways allow you to access a global network of online shoppers. The ability to accept any currency means you can expand your potential target audience and create a worldwide network of customers.

Complete transactions around the clock

With a payment gateway connected to your ecommerce store, you’re always open for business. Consumers can access your store and complete a transaction at any time of the day meaning you can make money even while you sleep or travel.

Keep web users on your page

dPayment gateways enable you to take payment from your customer without directing them to a third-party page; the last thing you want to be doing is guiding traffic away from your website. Having a payment gateway allows you to keep your customers right where you want them – on your web page.

Latpay’s Merchant Facilities

Activating a merchant account can be challenging and sometimes even a little stressful. At Latpay, we make the process straight forward and simple to get your business up and running as soon as possible. With long-standing partnerships with a range of acquiring banks who know and trust our platforms, we’re already known for meeting a range of challenges and volume requirements. We also maintain the highest accreditation for industry data security as a PCI Level 1 Service Provider, meaning banks and customers alike are comfortable and confident in doing business through our gateways.

Latpay services have a strong focus on security, reliability, user experience and customer service driven by our Australian-based headquarters and support centre. If you’re ready to start taking more payments online, get in touch with our team on 07 5515 0402 or learn more about our merchant solutions here.

We’re on the list of Visa Global Registry of Service Providers

Our commitment to compliance has once again been showcased after recently being announced as a service provider on the Visa Global Registry. For merchants, this means that Latpay is compliant with both the Visa program requirements and Payment Card Industry Data Security Standards (PCI DSS) to store, process or transmit Visa cardholder information.

The Visa Global Registry of Service Providers:

The Visa Global Registry has been compiled to make it easier for customers to choose the best merchant service provider for their needs. It’s important to note that:

  1. The Registry now distinguishes service providers that support secure technologies, such as EMV, tokenization and point-to-point encryption.
  2. Merchants can now check how long the provider has had a relationship with one of Visa’s clients or partners, which can be useful for a technology partner looking for a start-up versus an established company.
  3. The Registry also features service providers that are early adopters of the most recent version of the PCI DSS 3.2, which was released in April 2016. The key changes included a multi-factor authentication for administrators accessing cardholder data and additional security validation steps for service providers.

To learn more, visit the Visa Global Registry of Service Providers.

Why our compliance is good for your business:

  1. Protect yourself

Acquiring a compliant merchant service provider ensures that your business is meeting all legal and compliance requirements. In order to be cleared to take payments both on and offline, there are numerous hoops to jump through to ensure you’re providing a secure service for your customers. Working with Latpay takes the stress out of compliance obligations so you can get back to business.

  1. Protect your customers

As well as meeting all your legal requirements, working with a highly secure and compliant merchant service provider like Latpay ensures that your customers are protected from theft and fraud. Your customers are the lifeblood of your business, so protecting them against unauthorised transactions is critical. More than this, it also safeguards your business against reputational loss that often follows a financial breach.

  1. Allow customers to shop with confidence

When shoppers are confronted with unknown or untrustworthy payment systems, it forces them to think twice about making their purchase. Offering the highest security measures and trusted payment platforms can help your customers feel confident with their purchases and therefore less likely to second guess their decision. The transaction journey should be smooth sailing, allowing the customer to pay for goods or services without a second thought. Latpay can help you offer the peace of mind your customers need to shop with absolute confidence.

If you find that your payment service provider isn’t offering you the highest levels of data security and PCI compliance, it’s time to start shopping around.

Why choose Lateral Payment Solutions:

As a leading Payment and Merchant Service Provider in Australia, UK and Canada, Latpay offer superior fraud management capabilities and data tokenisation services to online businesses around the world.

With industry-leading technology, exceptional Level 1 PCI compliance and fraud management proficiencies, Latpay are proud to provide a truly complete payment solution for companies of all shapes and sizes.

Talk to us on 1800 865 224 to see how we can alleviate the hassles of security and compliance, so you can get back running your business.

Latpay Image For PCI Compliance

How Does your payment service provider tackle PCI compliance?

The Payment Card Industry Data Security Standard (PCI DSS) encompasses any business that takes payment via credit card, regardless of their size or industry, so it’s vital that you understand what protection your payment provider is offering and what they’re expecting you to tackle on your own.

While some providers may charge security and compliance as an additional service, most of us would expect that these come as part of your monthly fees, right? After all, they are the ones selling you the service, so should security and compliance not therefore be part and parcel of that service? Unfortunately, this isn’t always the case and it’s becoming more and more evident that some payment companies are profiting from this rather than helping you achieve the goal you set out to achieve when acquiring their services – growing your business.

Determining your PCI Compliance requirements

Regardless of whether you are a service provider, online retailer or brick and mortar store, the level of compliance for your business needs to be considered before you can truly understand what your requirements are and whether the additional costs are justified. If you’re handling, processing or storing cardholder data you will be required to meet compliance guidelines depending on how you process the payments.

The PCI Security Standards Council created 4 simple Self-Assessment Questionnaires (A, B, C & D) to help businesses validate the level of compliance they require, relating to whether your business does or does not handle, process or store credit card data. For instance, if your business takes credit cards via a hosted payment page like that offered via Latpay, you would only be required to complete SAQ A.

If, however, you take credit card payment and then store their information for quick future purchases, you’ll be required to complete SAQ D – the longest of the 4 containing around 250 PCI DSS requirements to adhere to.

To help you determine whether your provider is offering the services required by your business, let’s take a look at the top 5 things to look out for when acquiring a payment service provider:

Level 1 PCI Compliance
PCI compliance requirements change dependent on the size of your organisation and how many card transactions your process annually. Regardless of your business specifics, you should hope that your service provider is PCI DSS Level 1 certified, the highest possible level of compliance that can be achieved. This means that the responsibility of dealing with PCI can be shared with your provider, rather than worrying about it yourself in-house. It also gives you peace of mind that their systems consistently adhere to stringent guidelines associated with accepting, processing, storing and transmitting card information.

Secure Cloud Hosting
It’s fairly common knowledge that you shouldn’t be storing any credit card information to your website. For this reason, secure cloud hosting is one of the most infallible ways to securely house information away from your site, so make sure to check with your payment provider what methods they’re using for hosting. While you may have doubts about the security of storing sensitive data in the cloud, in reality it’s far more secure than physical system storage due to cloud providers’ dedication to the latest and greatest in security technology. Using global data centres with the highest standards for security and data privacy on the market, secure cloud hosting is reliable and resilient against a range of risks and threats and should definitely be included in your payment service provider SLA.

Secure Hosted Payment Page
If your business offers a hosted payment page for your customers, ensuring that page is secure is absolutely critical. This is due to the fact that all data sent over the internet is passed through any computer sitting between you and the end server, including credit card information. To mitigate the risk of a data breach, your payment provider should protect the page by encrypting this data with a Secure Socket Layer (SSL) certificate, allowing for a secure connection between device and server. Going the extra mile, your payment provider should be able to offer data tokenisation so that a customer need not re-enter their details each time they purchase online.

Data tokenisation
Data tokenisation is one of the most critical ways to safeguard your sensitive customer data and should be a must-have for your payment service provider.

Similar to the more commonly known process of encryption, tokenisation transforms important data like credit card details into a random set of characters that will be essentially useless in the hands of a cybercriminal.

This is due to the fact that, while the token signifies the original data, it uses a completely random method to be generated and therefore cannot be deciphered. Unlike encryption which uses a mathematical algorithm, a token can only be decrypted through what is known as a ‘token vault’ which houses the association between the data and the token. Further increasing information protection for your customers, the data housed in the token vault is then secured by way of encryption. With guaranteed security of any card data stored on servers, a token vault removes the hassle of data storage and enables descoping of customer data within the merchant landscape.

Fraud Management Services
What fraud management services is your current or prospective provider offering in your SLA? One of the very first things a good payment provider will do is conduct a tailored risk assessment based on your level of acceptable risk to determine how stringent your processes ought to be. As a standard, you should expect that every transaction is verified by a secure fraud management engine. You should also expect that there be some form of real-time fraud mitigation processes in place, complimented by a dedicated fraud management team to share information with you on fraudulent data and potential risks, as well as offline human analysis for increased comprehensive data security.

What should you do if your service provider isn’t making the cut?

If you find that your payment service provider isn’t offering you the highest levels of data security and PCI compliance, or is doing so at an additional cost, it’s time to start shopping around because you’re paying over the odds..

As a leading Payment and Merchant Service Provider in Australia, UK and Canada since 2001, Latpay offer superior fraud management capabilities and data tokenisation services to online businesses around the world.

With industry-leading technology, exceptional Level 1 PCI compliance and fraud management proficiencies, Latpay are proud to provide a truly complete payment solution to conventional and bespoke e-Commerce ventures for companies of all shapes and sizes.

Talk to us on +61 7 5502 6686 to see how we can alleviate the hassles of security and compliance, so you can get back to what you do best.

Latin America, Where Cash is King

Latin America has long been classified as an emerging market and with a total population of around 600M, the new business potential is obvious. Unquestionably the payments space continues to gather momentum within the Latin American markets but in doing so also presents challenges to international merchants actively targeting this region. As the areas covers around 25 countries, each local payment ecosystem will differ accordingly. It is therefore essential that merchants have a clear understanding on local purchasing habits which, if acted upon, will assist in transforming previously poor acceptance rates that, in the past, have been the bane of many a payments manager.

Local Payment Acceptance.

Put simply, indigenous payment methods are king, especially when it comes to fighting fraud. Local providers in comparison to the larger global payment operators will be able to offer enhanced customer validation by having access to local databases. Consequently, there are a multitude of local card and cash based e-commerce payment systems available across the continent that remain the automatic consumer preference at the point of checkout. Even though (for the moment at least) most credit cards issued by local banks aren’t enabled for cross border purchases, this is changing – Visa/Mastercard usage continues on an upward trajectory, albeit at a slow pace. As much as this trend is encouraging we must still remember that as many as 70% of the Latin American population still don’t have a bank account, therefore offering players viable alternative payment options remains key for any merchant or gaming operator that has designs on cracking these lucrative markets.

Lateral Payment Solutions can keep merchants ahead of the game via our single payment gateway integration.