Payments, a once mundane aspect of purchasing, have now morphed into a powerful touchpoint in the customer journey. E-commerce aficionados need to ask themselves: are we adapting quickly enough?
Embracing a myriad of payment methods is no longer a luxury but a necessity. With debit and credit card usage declining and alternative payment options like “buy now, pay later” gaining ground, the consumer landscape is experiencing a radical shift. The failure to acknowledge and integrate trending payment methods could cost merchants dearly, considering the astonishing £1.8 billion loss incurred yearly in the European Economic Area.
Evolving doesn’t just end at diversifying. Utilising customer data to craft an enhanced shopping experience is imperative. Data-driven insights promise not just improved transaction authorizations but also heightened customer loyalty, especially when the Strong Customer Authentication (SCA) looms as a potential purchase deterrent.
While the pandemic drove scores to embrace online shopping, it also ushered in a surge in online returns. Retailers now walk a tightrope, balancing genuine returns and the menacing rise in fraudulent claims.
In an era where some fraudsters can cheekily swap Playstations for cans of beans, how does a retailer safeguard its profits without alienating genuine customers? It’s a delicate balance struck through a combination of machine learning and fraud solutions that discern intent behind every return.
Opportunity often rises from adversity. Despite economic uncertainties, global e-commerce is on a meteoric rise. With online sales charting a 33% YoY growth in 2021, it’s evident that the digital marketplace is here to stay.
Cross-border expansion isn’t just about broadening horizons; it’s about survival and evolution in a competitive marketplace. But this expansion demands a holistic approach, factoring in content localisation, payment diversification, and adeptness at countering region-specific fraud trends.
SCA aimed to make the e-commerce space more secure. However, its implementation threatened to disrupt the smooth customer journey merchants had painstakingly crafted over the years.
Merchants are at a crossroads: ensure robust security with SCA or risk alienating customers with transactional friction? The solution? An agile SCA strategy tailored to reduce friction and incorporate exemptions for specific transactions.
Navigating the hurdles 2023 throws at e-commerce businesses demands agility, innovation, and a deep understanding of shifting consumer behaviours. Armed with the right tools and strategies, merchants are poised not just to survive but thrive in this ever-evolving landscape.