In 2017, we’re entering an era of unified commerce. Payments are becoming invisible, with important transactions taking place out of sight and out of mind, better enabling shoppers to focus on their shopping experience.
In the world of retail, convenience reigns supreme. Across online and bricks and mortar retail, significant advances have been made to make buying as simple as possible for the customer, and a big component of this includes payments.
The most compelling experiences along with efficient, frictionless payments can drive increased spend and loyalty. Here are three crucial factors you need to consider when selecting a payments provider.
- Shopper Recognition
Shopper recognition plays a key role in understanding purchasing behaviour and in turn, delivering personalised services such as loyalty rewards, customised payment and delivery options, and targeted offers. As more purchasing channels emerge, cross-channel customer recognition becomes more important.
A fundamental element of customer recognition is one-click payments. While they have been around for some time, there are still big wins to be had for businesses that get it right. If you are using tokenisation, you are already 80 percent on the right path and with the right payment provider it should be relatively easy to link tokenised card details to your customer’s account.
In order to recognise shoppers across sales channels, enable easy one-click and zero-click payments, and identify, track and combat frauds, businesses need a unified view of customer data. The first step must be the consolidation of all operations into a unified system, capable of spanning all markets and sales channels.
An effective payments provider can handle much of this work behind the scenes for you, building customer profiles. This allows you to sift through the data and develop more effective marketing and sales techniques to reach your ideal shoppers. Moreover, an effective payments provider can help you meet demand and stay ahead of the competition by adapting to shopper’s needs and expectations.
- Providing new payment options
Australian shoppers have traditionally relied on cash, credit and debit cards when shopping in-store. But things are changing; mobile payments are on the rise worldwide, as is conversational commerce, which is payments within messaging apps. The ubiquity of smartphones has made them the perfect companion for ‘anytime, anywhere shopping’, and it’s likely they will continue to blur the lines between sales channels. A growing number of shoppers will eventually be able to check out with one-touch or zero-touch payments in store, online or via mobile wallets e.g. Apple Pay, Android Pay, WeChat pay.
With a unified commerce payments provider, your business will be able to offer a complement of payment options to shoppers.
- Risk Management
Reducing the number of steps in the payment flow makes the purchase process more convenient for consumers, but it can make identifying and stopping fraud trickier. Fraudsters have learned that the easiest way to get hold of payment credentials is to hone in on one ‘weak link’. And with the increase of large breaches around the world, fraudsters have access to higher quality data. Consequently, they are no longer wasting their time on multiple, small-scale attempts, and are instead focusing their energy on springing sudden, large-scale attacks.
It is therefore crucial to focus on systems that can quickly identify and respond to emerging trends. To effectively combat fraud in 2017, it is important to focus on systems, rules and infrastructure that can quickly identify and respond to emerging trends, without the need for manual intervention. Payment providers must have a proven and effective risk management system – one that uses data and machine learning to react to changes quickly. Advanced linking algorithms, proprietary device fingerprinting and network intelligence to track devices, networks and online personas ensure you can minimise manual intervention. This allows you to block fraudsters as they adapt, while also maintaining frictionless payments for customers. With the right risk management system, you’ll be able to stop fraud in its tracks before it becomes an issue.
On Thursday 3rd August, Adyen will host a webinar showing how unified commerce is the future of retail, outlining the steps you can take to build the ultimate cross-channel experience for shoppers – including enabling seamless and secure payments.
This article is the last in a series of three that identifies how retailers can prepare for the future of retail. The first article addresses the 5 Reasons Retailers Need Unified Commerce and the second addresses the Steps Towards Unified Commerce.