Here is a guide to integrating and optimising your business’s e-payment system
Unless you have been living under a rock or on a deserted ranch in the Outback, you would have no doubt noticed that online transactions are coming on in a big way.
E-commerce sales are expected to hit 10 per cent of all retail sales by 2017, up from 7.4 per cent two years ago. The transactional volume for consumer goods via online channels have hit close to US$2 billion globally.
What these figures convey is that more and more consumers and businesses are leveraging the advantages of e-payment systems to conduct commerce:. With the right payments partner, businesses can scale and expand to international markets easily, and customers can complete transactions instantaneously from any location.
For businesses still on legacy systems, it’s not too late to adopt online payment systems. But before shopping for a suitable one, here are some guidelines to take note of.
Currency
While e-payment systems broaden your business’s reach to international markets, businesses still need to consider the differences in currency preferences of their consumers
For example, a Singaporean business cannot afford to charge customers in UK in Singapore dollars The difference in currency will can create confusion, and add additional foreign exchange (FX) charges to the consumer cardholder.
Also Read: How mobile operators are filling the e-payments gap in emerging markets
And this complication will inevitably lead to lower conversion rates, and thus result in decreased revenue. The Singaporean company should ideally charge the UK customers in their home local currency – which, in this case, is the English pound.
Platform
There are different e-payment models available: for example, eWallets; Bitcoin; eInvoices; and many more.
It is imperative for businesses to a pick payment types that best suit their model. For example, ride-hailing companies such as Uber and Grab work well with eWallets: this cashless e-payment service provides a quick and seamless way for drivers to complete transactions with riders without fumbling about for spare change.
Either way, businesses models are not always stagnant, and they constantly evolve to meet market demands. So, it is crucial to pick a payments partner that is nimble and constantly evolves to make relevant payment methods accessible.
Also Read: Xiaomi stomps into the mobile payment space with Mi Pay, but with one catch
One example is Braintree, a global e-payments for e-commerce provider – a subsidiary of Paypal. Their service allows customers to pay seamlessly with their preferred payments method, and in their preferred currencies.
Braintree is available to merchants in over 46 markets, allowing them to accept over 130 currencies and every major alternative payment types such as Apple and Android Pay.
UI/UX
It is pointless to integrate an e-payments system that is too difficult for both the merchant and consumer to use.
Companies should choose a payments partner that allows them to create a seamless checkout experience for their customer. For example, a payment system that redirects multiple times is inefficient and frustrates consumers.
Statistics have shown that consumers are willing to pay extra for better customer service, so businesses should take heed to prioritise smooth UI experiences if they want to retain customers.
One such good design consideration would be to allow a native checkout within the natural UI/UX of the website or app.
In the case of Braintree, it provides the tools for startups to create secure, seamless and elegant one-touch payment experiences within their apps or on their website.
Tokenisation
For an extra layer of security, tokenisation should be implemented. Essentially, it is a method where sensitive credit card details are replaced with a randomly generated string of characters, referred to as a token 16-digit randomly generator.
This means that merchants will be able to view customers’ credit card details, thereby ensuring that customer credit card details are not compromised.
In the case of Braintree, tokenising customer details and storing them in the Braintree vault also allows businesses to offer one-click purchase options – doing away with the need to re-enter details at every checkout, even for their subsidiary businesses.
Also Read:How e-payment tech is helping businesses to scale
Ride-hailing giant Uber uses this payment system for its primary business and it’s subsidiary app, UberEATS. Uber users’ and payment details are automatically transferred to UberEATS once the app has been downloaded, allowing for a seamless, one-touch purchasing experience across both apps.
Additionally, with social selling becoming more prevalent, the need to store payment details so customers can pay in a variety of context becomes more pressing.
Conclusion
While the online payment environment would be is too complex to surmise in five soundbites (for example, cultural differences also play a factor), these tips would serve as a good starting point for any businesses looking to optimise the purchasing experience for their consumers by migrating to an e-payment system and scale to new markets.
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Image Credit: varijanta / 123RF Stock Photo
Disclosure: This article was produced by the e27 content marketing team, sponsored by Braintree.
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