Can mCommerce Solve the Conversion Crisis?

/in , , , , , , /by

Gertjan Dewaele of Ingenico ePayments argues that “mobile shopping has established mCommerce as a key sales channel”

Put your mobile where your commerce is

The vast majority of merchants understand that mobile innovation affects customer satisfaction and profitability, but this awareness needs to be matched by action if they are to make the most of the mobile commerce opportunity. No merchant can afford to ignore the revenue-generating potential of mCommerce.

More than three quarters of UK shoppers use their mobile to make purchases online while commuting or travelling, and 45% browse in their free time. It’s a growing trend. UK consumers now spend twice as much time on their mobile device as they do on a PC or laptop, and the use of mobile apps for shopping is on the rise as well. 83% of time spent on mobile is app-related and more than half of that is spent shopping.

On the other side of the Atlantic, 40% of online purchases in the US were made on mobile devices in 2017, a 29% increase over 2016.

Taking a closer look at Europe’s largest economy, Germany, we can see that mobile commerce has been a slow burner, but consumers have begun using their phones to make online purchases in greater numbers. mCommerce in Germany now accounts for 12% of purchased goods. Ready for a boom, it is estimated that mCommerce volumes will increase by 39% and represent 42% of total retail ecommerce sales in the country by 2021.

Avoid abandonment

In spite of this burgeoning international mobile trend, many merchants are falling behind in trying to meet their customers’ expectations. Research by Ingenico ePayments and InternetRetailing found that only 57% of those active in sectors such as travel and gaming declared having a responsive website for desktop and mobile as their main focus. Just 39% described themselves as being ‘mobile first’.

The negative impact of this lack of innovation in mobile is becoming increasingly clear. Our research has found that 60% of all shopping carts created are abandoned before payment and that one in five consumers do not complete the payment process. The result is a considerable amount of lost revenue for merchants and large numbers of unsatisfied customers.

A smooth customer experience

Fortunately, there are several steps that can be taken to ensure that more of these planned purchases are completed. Investing in a frictionless mobile experience is a good starting point: although just over half of the retailers we surveyed are currently investing in this area, 40% intend to do so over the next two years.

Firstly, merchants should ensure their mobile site is localized, meaning consumers can pay how they like based on where they are in the world.

As well as this, they need to be aware of the importance of optimizing the payment page, from using a numeric keypad, to automatically format credit card numbers to detect invalid inputs. Cutting out unnecessary steps in the payment process will improve conversion rates. After some merchants found that 3D Secure was showing a potential to negatively affect their conversion, they utilized it only for high transaction values or enabled tokenization to provide a fast-track experience for returning customers. 3D Secure 2.0 will use advanced data analytics to help determine cases where additional security measures are required, reducing the barriers for the majority of consumers.

Finally, consider the options available. There are payment methods that work better on mobile, such as PayPal and Apple Pay, both of which are helping merchants to shift away from a sluggish system to an omnichannel future, in line with high customer demands.

Next level mCommerce

Of course, now that mobile is becoming mainstream, it doesn’t mean the environment stops evolving. Innovations are always on the horizon to stay relevant to consumers.

Already there is a new sales channel for consumers which is ideal for the mobile device: chatbots. This tool is seeing great success with Generation Z and millennials, yet just 16% of the internet retailers we surveyed were investing in messaging bots for conversational commerce. Seeing more consumers turn to this sales device is certainly likely, though, as more than half of those surveyed plan to enlist it within the next two years.

We expect this to soon become commonplace. With the first pilot results, we’ve seen a six-fold boost in conversion while using chatbots versus a mobile website. These bots learn patterns of behavior and can target customers, offering the products or services that would be of most interest – a level of personalization that leads to better conversion rates and higher customer satisfaction.

Another – often overlooked – avenue for conversion is the moment after the purchase. Following the transaction, a merchant can leverage this time to entice customers to purchase additional items or encourage their return. Providing a related product (insurance, for example) or offering smart discounts via gamification will maximize the conversion on the initial transaction and help create a loyal consumer base.

The future is within our grasp

We aren’t losing the in-store experience just yet, though. In fact, mobile may be the key to revitalizing a practice that has fought a losing battle in recent years. We’re seeing a number of ‘scan and pay’ projects creeping into the market, which are using mobile devices to drive a better in-store user experience – and boost completed transactions in the process.

It’s clear that the sheer convenience of mobile shopping has established mCommerce as a key sales channel, which means that merchants have to optimize their mobile site and payment processes in order to be in the sales game.

Source: The Paypers – http://bit.ly/2C7xDJe 

What is a payment gateway and why do I need one?

/in , , , , , , , /by

Are you ready to grow your business online? Payment gateways are an essential step to maximising your online revenue and reaching more customers. For those who might need a little refresher on what they are and how they work, take a read of the following article outlining some key points and benefits of a payment gateway to online businesses.

What is a payment gateway?

A payment gateway or third-party service creates a connection between your ecommerce platform and your bank in order to take payments from customers online. Payment gateway software securely authorises credit card payments through the deployment of encryption, allowing sensitive information to be passed from customer to merchant to bank and back. As a security standard, businesses must have a payment gateway or third-party service in order to accept payments online.

How does it work?

The payment gateway sends credit card and other private data between parties in a secure manner to ensure all information is protected while a transaction is being processed. To complete this process, the payment gateway completes a range of tasks within about 3 seconds. To demonstrate the process in action, let’s take a look at how it all plays out.

  • Becky has decided to buy a shirt through an online store. Once she’s happy with her choice, she adds the item to a shopping cart and heads to the checkout page.
  • The website will open a secure payment page where she enters her credit card details to place the order.
  • The payment details are transferred securely from the payment page to the payment gateway.
  • The payment gateway will encrypt her credit card information and pass it on to the merchant’s bank to be authorised.
  • The merchant’s bank will decide whether or not the transaction should be approved based on a number of factors (whether Becky has gone over her credit limit, whether the card is legitimate, etc) and passes this information back to the payment gateway.
  • If the transaction is approved, the payment gateway will notify the merchant and the customer that payment has been accepted.
  • If the transaction is denied, a message will appear on Becky’s screen notifying her that the payment was declined, and the transaction has been disregarded.

The benefits of a payment gateway to your business:

Although there are a number of alternative methods available for taking payments online, having a payment gateway provides a range of unique benefits to ecommerce businesses. Some of these key benefits include:

Secure payment processing

Data security should be the number one priority for any business. Payment gateways offer the ability to take protected payments via industry-standard encryption technology. With a reputable payment gateway, customers need not worry about their credit card or personal information being intercepted and used without authority. Payment gateways protect both merchant and customer against identity fraud. 

Accept payments instantaneously

With a process taking less than 3 seconds, payments can be accepted online in real time. This means that customers don’t need to wait when purchasing their goods and merchants don’t need to wait for payments to be received.

Enable international purchases

With the ability to process transactions in multiple currencies, payment gateways allow you to access a global network of online shoppers. The ability to accept any currency means you can expand your potential target audience and create a worldwide network of customers.

Complete transactions around the clock

With a payment gateway connected to your ecommerce store, you’re always open for business. Consumers can access your store and complete a transaction at any time of the day meaning you can make money even while you sleep or travel.

Keep web users on your page

dPayment gateways enable you to take payment from your customer without directing them to a third-party page; the last thing you want to be doing is guiding traffic away from your website. Having a payment gateway allows you to keep your customers right where you want them – on your web page.

Latpay’s Merchant Facilities

Activating a merchant account can be challenging and sometimes even a little stressful. At Latpay, we make the process straight forward and simple to get your business up and running as soon as possible. With long-standing partnerships with a range of acquiring banks who know and trust our platforms, we’re already known for meeting a range of challenges and volume requirements. We also maintain the highest accreditation for industry data security as a PCI Level 1 Service Provider, meaning banks and customers alike are comfortable and confident in doing business through our gateways.

Latpay services have a strong focus on security, reliability, user experience and customer service driven by our Australian-based headquarters and support centre. If you’re ready to start taking more payments online, get in touch with our team on 07 5515 0402 or learn more about our merchant solutions here.

We’re on the list of Visa Global Registry of Service Providers

/in , , , , , , , /by

Our commitment to compliance has once again been showcased after recently being announced as a service provider on the Visa Global Registry. For merchants, this means that Latpay is compliant with both the Visa program requirements and Payment Card Industry Data Security Standards (PCI DSS) to store, process or transmit Visa cardholder information.

The Visa Global Registry of Service Providers:

The Visa Global Registry has been compiled to make it easier for customers to choose the best merchant service provider for their needs. It’s important to note that:

  1. The Registry now distinguishes service providers that support secure technologies, such as EMV, tokenization and point-to-point encryption.
  2. Merchants can now check how long the provider has had a relationship with one of Visa’s clients or partners, which can be useful for a technology partner looking for a start-up versus an established company.
  3. The Registry also features service providers that are early adopters of the most recent version of the PCI DSS 3.2, which was released in April 2016. The key changes included a multi-factor authentication for administrators accessing cardholder data and additional security validation steps for service providers.

To learn more, visit the Visa Global Registry of Service Providers.

Why our compliance is good for your business:

  1. Protect yourself

Acquiring a compliant merchant service provider ensures that your business is meeting all legal and compliance requirements. In order to be cleared to take payments both on and offline, there are numerous hoops to jump through to ensure you’re providing a secure service for your customers. Working with Latpay takes the stress out of compliance obligations so you can get back to business.

  1. Protect your customers

As well as meeting all your legal requirements, working with a highly secure and compliant merchant service provider like Latpay ensures that your customers are protected from theft and fraud. Your customers are the lifeblood of your business, so protecting them against unauthorised transactions is critical. More than this, it also safeguards your business against reputational loss that often follows a financial breach.

  1. Allow customers to shop with confidence

When shoppers are confronted with unknown or untrustworthy payment systems, it forces them to think twice about making their purchase. Offering the highest security measures and trusted payment platforms can help your customers feel confident with their purchases and therefore less likely to second guess their decision. The transaction journey should be smooth sailing, allowing the customer to pay for goods or services without a second thought. Latpay can help you offer the peace of mind your customers need to shop with absolute confidence.

If you find that your payment service provider isn’t offering you the highest levels of data security and PCI compliance, it’s time to start shopping around.

Why choose Lateral Payment Solutions:

As a leading Payment and Merchant Service Provider in Australia, UK and Canada, Latpay offer superior fraud management capabilities and data tokenisation services to online businesses around the world.

With industry-leading technology, exceptional Level 1 PCI compliance and fraud management proficiencies, Latpay are proud to provide a truly complete payment solution for companies of all shapes and sizes.

Talk to us on 1800 865 224 to see how we can alleviate the hassles of security and compliance, so you can get back running your business.

Setting up your eCommerce Business

/in , , , , /by

Are you gearing up to sell your products online? Starting up an ecommerce venture is an incredibly exciting time for any business owner, however you want to make sure you get it right. With very few touch points and just a single checkout method, it’s important to get all the fundamentals right in order to encourage your customers to complete a purchase.

If you’re new to ecommerce or just want a refresh on the fundamentals of starting an ecommerce website, check out our key points for launching your store including a detailed explanation of the most important step – payment processing.

Setting up the basics – Hosting & Domain

When setting up an eCommerce store, one of the very first things you’ll need to do is organise hosting for your website. There are a large number of companies around that offer this service, however some of our favourites are:

After this is complete, you’ll also need to purchase a domain name. This is generally some variation of your business name (if this is still available) including acronyms. Make sure it’s easy to read and easy to type; you don’t want potential customers getting lost on their way to find you.

Setting up

After you’re happy with the design, it’s now time to upload your products. The process of uploading your items will depend on the CMS you have chosen, however, there are a few fundamental things you should keep in mind when doing so. For example, categorisation of your products is essential to allowing your products to be easily found. If a customer lands on your page and can’t find what they’re looking for in a few simple clicks, you’ve likely lost out on a sale.

Integrating a shopping cart

In order for your customers to be able to shop on your website, you’ll need shopping cart functionality. A shopping cart is essentially a piece of software that users can add their desired purchases to in order to facilitate a purchase. Shopping carts may be self-hosted and integrated into your website with a plugin or downloadable software or hosted by a third-party. With a hosted shopping cart, all you need to do is sign up with the chosen company and you’ll be on your way to start processing payments. There are many hosted shopping carts available, but some of our favourites would have to be:

Processing customer transactions

Undoubtedly the most important aspect of setting up your ecommerce website is having the ability to complete transactions. Regardless of the payment options you’re intending to offer, you’ll need to implement payment processing, including the following:

  •  Payment Gateway

As the name suggests, a payment gateway is the entry point for taking customer payments online. It’s like a cash register at the store, allowing you to accept payments for your goods or services. For security reasons, ecommerce stores cannot process payments directly through their site and thus, the payment gateway acts as a middle man between the customer and the payment processor.

So how does it work?

A payment gateway secures the payment process, meaning customers will be more comfortable spending their money with you. It does this by encrypting data through your secure sockets layer (SSL) and sending it through to the bank to regulate whether or not it’s a valid payment.

  • Payment Processor

A payment processor is the financial entity that processes payments behind the scenes, providing a link between the payment gateway and merchant account. It sends information rapidly to and from these links in the chain to provide a speedy service for the customer. In general, your payment processor will have an agreement with either the acquiring bank or the payment gateway, allowing them to offer a dual service to the merchant.

  • Merchant Account

A merchant account, also known as a merchant ID (MID), is a bank account designed specifically for accepting payment via debit and credit cards online. Your Merchant Service Provider (MSP) will generally be able to provide this account through either affiliation with one of the big banks or as part of their internal services. While there are many merchant accounts available to businesses looking to sell online, they can vary significantly in monthly fees so it’s beneficial to do some research before locking yourself in.

The payment process in action

To help you understand how these processes work, let’s take a look at them in action.

Mel is browsing her favourite shoe store online and decides to buy a new pair of sneakers for herself. She adds the item to her shopping cart, heads to the checkout and enters her credit card information.

As the purchase is processing on her laptop, within a couple of seconds the payment process occurs:

  • Mel’s transaction information is passed from the payment gateway through the payment processor and on to the merchant account
  • The payment processor connects with the Credit Card Network to locate Mel’s bank and then verifies her credit card to ensure the payment is valid
  • Mel’s bank accepts the transaction as she is using a valid card that hasn’t gone over the credit limit
  • The payment processor then responds to the payment gateway with the information that the payment is approved, allowing the merchant website to complete the purchase
  • The merchant is then notified of the transaction and processes Mel’s order
  • Mel’s bank transfers the required money across to the merchant’s bank
  • Once the settlement period has expired, the money is then deposited into the merchant account

Ecommerce and Latpay 

Latpay offer a range of merchant services to help get your ecommerce store up and running in no time. With innovative technology and endless integrations, we can help you elevate your shopping experience to help you convert more customers. With options to set up your merchant account and integrate our payment gateway into your shopping cart, our robust payment platforms offer the most effective way for processing transactions online.

For more info on our comprehensive merchant facilities, follow the link or get in touch with our team on 07 5515 0402

Learn more about merchant facilities here.

Getting Started for Business with Merchant Services

/in , , , , , , /by

Whether you’re starting up a new venture, taking your business to the next level or expanding your avenues, having the right Merchant Services for your needs is absolutely essential. To help you kick off sales this quarter, let’s run through what Merchant Services are and the various options available to you.

What are Merchant Services / MSP?

Merchant services are the terminals, technology or software employed by a business to take payments by EFTPOS, credit and debit cards. Therefore, the MSP or Merchant Service Provider is the company that manages the operation of these systems. After taking card payment, the chosen system would then settle the payment into the bank account linked with the terminal or software provider.

So which payment system should I choose for my business?

It all depends on your business needs; small businesses, for instance, would have different payment requirements to a large corporation. By the same token, a brick-and-mortar retail store would have different needs to a professional service provider.

There are loads of options available to all kinds of businesses. Let’s take a look at some of these now.

In-store terminals / Point of Sale (POS)

An in-store terminal or POS system is the method employed by a business to take payment for their goods or services at the cash register. This is a combination of software and hardware, including a monitor, barcode scanner, card reader, receipt printer and cash draw. The software component of a POS terminal may be deployed on premise via installed software or through a cloud-based system commonly known as Software-as-a-Service (SaaS). Cash and Eftpos terminals are primarily used in brick-and-mortar stores as they lack mobility or capacity to take online payments.

mPos (mobile POS)

 mPos solutions are a really convenient way of taking payments on the go. You don’t even need a website to get started, as payments are taken directly through an app on your mobile. This type of payment solution is perfect for pop-up businesses, personal trainers, sales reps and anyone who needs to take payments while on the road. mPos software also allows you to accept a range of payment options, including tap-and-go, to ensure you’re offering your customers the method they’re most comfortable with.

eCommerce / Shopping Carts

For eCommerce businesses, having a secure and reliable online payment solution is critical. Essentially, your chosen shopping cart will be integrated into your website, which will then connect with your MSP. Reliable shopping carts can provide seamless checkout processes for your customers and therefore encourage repeat purchases. Most innovative MSPs will be looking to expand their integrations and offer custom integrations, so keep an eye out for this when acquiring their services.

Hosted Payment

A hosted payment page allows you to accept payments through your website by redirecting customers to your MSPs hosted payment page. This method is an economical way of taking payments as there are no development or security fees involved with implementation. A good MSP will also be able to offer a branded page that reflects your website to make users feel like they haven’t moved away from your page.

What to look for when choosing an MSP?

For obvious reasons, merchants are eager to partner with a reliable and reputable MSP to manage their business transactions. However, this market is becoming increasingly saturated and it can be difficult for new businesses to distinguish which company will work best for them. If you’re looking to acquire your first MSP (or are unhappy with your current service), here are a few of our top tips to choosing the best MSP for your business:

  1. Before approaching an MSP, do some research into the options you are interested in acquiring for the specific needs of your business. If an MSP doesn’t offer the services or systems you’re interested in, move on to the next one.
  2. Look into the costs and recurrent fees of each MSP, making sure that your chosen one is good value for money compared with their competitors.
  3. Read the terms and conditions in the product disclosure statement or financial services guide to make sure you fully understand the level of service they are offering and whether it aligns with your needs.
  4. Look for online reviews and customer stories about their customer support; if many of their customers seem unhappy with the service, then maybe this particular MSP isn’t the best choice.

Why Latpay?

Latpay have more than 17 years’ experience delivering merchant facilities and bespoke payment systems to businesses of all shapes and sizes. We deploy robust, secure and innovative technology to allow your business to thrive – all with Level 1 PCI compliance. We also offer 24-hour dedicated technical support to ensure we’re here when you need help. To find out more about Latpay’s Merchant Facilities, follow the link or give us a call on 07 5515 0402