How to Maximize Merchants’ Revenues?

Global Payment Solutions

Payments 2016: The Year Of Omnichannel Commerce - Gijs op de WeeghFor years, many online businesses have been aware of consumers’ precise behavior in this environment, whereas many owners of physical stores have practically no information on who their customers are and what they want. 92% of transactions are made in physical shops, not online, and this is why it is absolutely necessary to translate online knowledge about transactions and behavior to physical stores. Because consumers just expect a seamless, convenient and user-friendly shopping experience whether it’s in a store, online or leveraging both channels.

 

The main problem that needs to be solved is the variety of systems and the need to match the data gathered across these systems. These systems have to be connected and to communicate which each other in order to allow data comparison and analytics. This will help optimize the entire shopping experience, based on the customers’ payment history, and point to the main areas of improvement. With this insight we then advise our merchants about the correct systems, channels and devices to connect with their clients and make seamless payments.

 

Based on the data gathered through our global acquiring network and payment platforms, we have created great added-value products in three areas; fraud, authorization rate, and consumer behavior.

 

 

In terms of fraud, the main challenge for merchants and PSPs is to be totally aware of the false positive transactions, or honest transactions declined because of overly sensitive fraud detection, which eat up 2.8% of the total ecommerce revenue of merchants.

 

Furthermore, banks don’t trust each other, so they decline transactions based on the “unknown” or the past behavior. To increase the authorization rates and help our merchants earn more money, we have created the predictive modelling and remove the inefficiency by ‘trusted routing’.

 

Studying the consumer behavior,from geolocation to payment preferences, allows us to optimize the checkout experience by reducing the number of steps that the customer needs to complete, while still gathering an optimized amount of data.

 

When connecting how people shop online with how they shop in physical stores, we enter a privacy and security discussion around the in-store data gathered and stored, the consumer and legal boundaries, buying patterns predictions, payment preferences, etc. For instance, when combined with geo-location data, purchasing histories and online browsing habits, retailers will know so much about a customer, his needs and preferences that they can predict what the customer wants before he actually knows.

 

With the growing interest and value of data, and some payment types becoming more of a commodity, every payment company should transform itself in a data-driven omnichannel enterprise. Payvision truly understands and utilizes information taking the advantage in the increasingly competitive omnichannel payments arena. We are convinced that the traditional payment system will not exist in 10 years from now.

 

Our main piece of advice to all merchants is to work with their payment providers to improve the consumer experience by using data analytics; combining online with offline, fraud, authorization rates, omnichannel. Merchants must create a network of providers specialized in different areas, all connected, who can provide them with good quality data. We believe in partnering with different specialists but also innovate in one’s own core business.

 

Original article available here

 

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