Are you keeping up with your customers?
Shoppers are placing a premium on convenience. Are your payment solutions keeping up with demand?
Having the right security in place can be vital to success – and if the fit’s wrong for consumers they could go elsewhere.
Although payment security may not rank highly in the glamour stakes, putting the right practices in place can make a big difference to your business.
Our research shows just how important it is. Almost half of all consumers say they are more likely to buy online from one retailer over another if they feel it offers a more secure checkout process. But with consumers also demanding greater convenience and a more seamless experience, there’s a tricky balance to strike.
Despite the challenges, those getting it right can be among the sector’s winners. The best experiences not only keep existing customers happy, but help drive additional sales that could otherwise have gone elsewhere. But are you as close to cracking it as your competitors are?
Building trust with your customers can have a direct impact on your bottom line if they feel more secure when shopping with you.
Our research shows that 50% of people have abandoned an online clothing purchase in the last 12 months, with almost 10% of those doing so because they were worried about security.
Not only will a secure checkout help to reassure existing shoppers, there’s an opportunity to gain new consumers too. Our research shows that 13% of people prefer shopping in-store because they don’t like sharing their card details over the internet. Easing their concerns could tempt them to come on-board.
As technology evolves, the best payment security experiences continue to develop too. Are yours good enough to keep up with the best in the business?
Satisfying customer demand for both speedy and secure payments is key and accepting digital payments such as Apple Pay in-store are one way that retailers are offering this blend. And if consumers authenticate themselves with their fingerprint or PIN code on their mobile device, some retailers allow them to make higher value contactless payments above the standard £30 limit.
“New payment technologies are combining security with convenience,” says Shay Doran, Corporate Customer Solutions, Barclaycard. "Digital payments through smartphones are a great example of this.”
One of the biggest problems with security is the amount of genuine transactions that get stopped in their tracks.
Our research shows that, in the last 12 months, around a fifth of people have had their cards incorrectly declined while clothes shopping online. A similar amount have had cards incorrectly declined in-store.
If your business is turning away good customers, it’s not just the initial sale that you risk losing. If you’re pushing them into the arms of another retailer, it can be hard work winning them back.
“If you try to buy something and your payment fails, even though you know you’ve got money in your account, you might not try to buy from that retailer again,” says Sharon Manikon, Customer Solutions Director, Barclaycard. “We have the ability to analyse the payment traffic that a retailer processes, see which payments aren’t getting through – and why – and help them to ensure that as many genuine transactions as possible go through.”
The regulations around security – including data protection – can be complicated. If you fall foul of them, the penalties can be severe.
At the same time the demands on retailers for greater delivery options, a more seamless returns process across channels and a more personalised experience is adding extra complexity to keeping everything secure.
And while big companies will have dedicated security teams to deal with it all, other retailers may not. So the question is, do you have enough expertise built into your business model?
“The demands are getting tougher, without a doubt,” says Shay. “Many businesses will rely on information from reliable external sources. We run a payment academy that covers topics such as cyber security and compliance, and we have dedicated PCI-DSS and fraud teams to work with businesses to make sure they’ve got the right solutions in place.”
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All statistical information is derived from Barclaycard research conducted by Opinium, September 2016.