Adyen, the leading multi-channel payment provider, collect and present ideas on how to boost your ecommerce revenue. To understand e-commerce corporate treasurers need to understand that some 5 billion people (more than half the world’s population) now view the internet on a mobile device. ( And Adyen predict that by next year, the value of mobile payments worldwide will surpass $1 trillion.)

For merchants, that means optimizing the design and function of a payments page and streamlining the entire payments process is vital. Consumers often abandon purchases if the payment process is cumbersome, or if their preferred payment methods aren't available. 

Preventing adandonment

Consultants Edgar, Dunn & Co. recommend five ways to prevent abandonment:

1. Optimize the mobile payment experience to increase checkout conversion
   • Adyen research suggests that consumers are more comfortable spending higher amounts on larger devices. So merchants should offer a dedicated interface for each type of device, so that consumers don’t struggle to see, for example, the whole range of payment options on a smartphone.
2. Localize payment methods to unlock new customer segments
   • Credit cards aren’t the only way to pay. Need to use the locally accepted ways to pay
3. Implement a global acquiring strategy with a local approach
   • Go local with acquiring to achieve higher card authorization rates, lower interchange and scheme fees, and faster merchant settlement.
4. Leverage payment data insights to increase conversion rate and reduce acceptance costs
   • Remember that: On average, 5-15% of ecommerce credit card transactions are declined by issuing banks, and of those declines, 25% lack valid reasons, usually due to old and inefficient systems, while a good payment partner can reduce the number of declines by optimizing the data submitted, suggesting corrective changes to the issuer, or identifying a better routing for a given transaction.
5. Use an intelligent, data-based approach to minimize risk and maximize revenue
   • Adyen suggest using their RevenueProtect product to avoid barring legitimate shoppers from checking out.

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CTMfile take: The two biggest costs in e-commerce today are abandoning of purchases before completion of the transaction and cyberfraud. Both are very costly in terms of reputation and in lost business, but at least they can be minimised.