In global e-commerce it is imperative – among other things – for the PSP/ISO and merchant to offer the suitable regional set of classic and alternative payment methods in each market. Merchants must meet shopper expectations in the check-out page as shoppers want to pay with their preferred and trusted domestic payment methods. This is invaluable and defines the merchant’s and therefore the PSP’s/ISO’s success. It is key to fewer drop-outs, satisfied customers, high conversion rates and ultimately higher revenues.
Offering the suitable regional set also includes offering the right selection of alternative payment methods
Most common alternative payment methods are wallets, debit cards, direct debit, bank transfer, phone and mobile payments, charge cards, prepaid cards, cash payments, checks and money orders. Direct debit, for instance, within Europe mainly used in Germany, Austria, the Netherlands, Spain and UK has been developed to the new SEPA standard by the European Union. SEPA will replace all local direct debit processes from 1 February 2014 on and will simplify cross-border payments in and between all European countries. This step forward contains strong advantages for all domestic and international e-commerce providers.
But what else drives conversion rates and revenues high?
Next to offering a mix of payment methods that correlate with local payment behaviours, it is the active payment method selection that influences conversion and revenues. On the basis of shopper behaviour, shopper basket, shopper device, invoice and delivery address, the active payment selection provides the shopper his preferred payment method while at the same time minimising the merchant’s risk of not receiving payments.
Offering both, active payment method selection based on unique shopper profiles and a suitable regional set of payment methods, gives merchants and payment service providers/independent sales organizations the best possible option to manage their conversion rate and revenues, even allowing payment providers to offer guaranteed payments across different payment methods. For instance, payment service providers/independent sales organizations can offer small merchants open invoice, pre-payment and direct debit, thus giving the PSP the opportunity to enter new market segments.
The payment platform and gateway of PAY.ONenables payment providers, such as payment service providers/independent sales organizations, acquirers, suppliers of payment methods and risk management providers, omnichannel transaction processing over one platform and a true global coverage. PAY.ON covers 65 countries and regions with over 130 payment brands and more than 200 providers connected. All PAY.ON systems guarantee compliance with the security and requirements standards that apply to the international payment market.