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Future of Retail — Payments Innovation
issue 02
With that in mind, here is some expert
advice tried and tested by some of the world’s leading online and omnichannel merchants on how to tap payments to give a better shopper experience, optimize conversion, and grow revenue.
ENSURE A FRICTIONLESS EXPERIENCE IN STORE As online shopping becomes ever more intuitive and simple, omnichannel retailers are investing in making the in store experience just as frictionless. Some ways that this can be achieved is
through the adoption of innovative in-store technologies. For example you can eliminate checkout queues with mobile point of sale (mPOS) terminals, which enable staff to process payments anywhere on the shop floor. Or bring your online inventory in-store via kiosks that give shoppers access to the online store – meaning they can find and purchase additional sizes or colours even if they are not in stock. Another fast-growing way of giving a better
shopper experience is through blurring the lines between sales channels, so customers can shop at their convenience. This means supporting ‘click and collect’, where customers buy online and then pick up in-store, and accepting the return of online purchases in- store.
OFFER THE ENTIRE INVENTORY IN-STORE A key retail trend is the expectation of shoppers to have a seamless experience however they choose to shop. In-store, one of the main areas to provide this experience is to ensure that the shopper can buy any item they want. However, in practical terms, this can provide some challenges as limited space in- store may make stocking all sizes and colours of every product untenable. With in-store tablets, you can give your shoppers access to your entire inventory by enabling them to browse additional sizes and colours, pay in-store and have the items delivered to their home – minimizing the risk of a lost sale.
You can eliminate checkout queues with mobile point of sale (mPOS) terminals, which enable staff to process payments anywhere on the shop floor.
TAKE A SMART APPROACH TO ONLINE FRAUD MANAGEMENT Traditionally, fraud management has been focused on blocking fraudulent shoppers, but the problem with this approach is that inevitably, merchants also block genuine transactions that look fraudulent. However, instead of just stopping fraud as
the aim of the game, smart businesses are aiming for revenue growth through smart fraud management. Businesses with this approach connect multiple data points, such as card numbers, machine fingerprinting, email and IP addresses, and even basket value and time of day, to assign risk scores to transactions. Fine tune the balance between stopping fraud and approving genuine transactions, based on their specific merchant situation, thus minimising false positives. In fact, one company using this approach with Adyen – Delivery Hero – saw its false positives drop by 50%, as well as chargebacks reduce by 78%.
INCREMENTALLY INCREASE ONLINE AUTHORISATION RATES Whilst two thirds of declined transactions are due to legitimate reasons such as invalid cards or insufficient funds, a third of these failures (or 2-3% of all transactions) are rejected due to legacy systems or bank miscalculations. Depending on where a business is operating
and whether it is a global or domestic merchant, routing international transactions via a local network will likely deliver marginal gains in terms of higher authorisation rates. Another way to incrementally improve authorisation
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