Mistakes in Online Payment Systems that can ruin Conversion Rate


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The payments system on the checkout page of a merchant website is often the make-or-break stage of the transaction that converts a window shopper into a paying customer. High website traffic with high incidents of cart abandonment and customers leaving the e-commerce site without completing the purchase transactions indicates that it is high time the payments process is simplified to avoid further revenue loss.


Payments performance directly impacts customer experience

The website conversion rate has a direct bearing on the merchant business revenues and profits. The decline in conversion might indicate a mistake in the buyer journey whereby the potential customer preferred to opt for a rival merchant’s products or lacked confidence in the merchant platform. Along with improving product quality, the website UX, security, and easy navigation to the checkout page, merchants should enable the customer to conveniently pay for the products in a frictionless and prompt manner. We shall look at some of the often-overlooked e-commerce mistakes committed by online merchants and how Simpl can help overcome these:

 

1. Redirection is a big hurdle

Merchant platforms that redirect customers away to another external payment webpage to complete the online payment, risk losing the customer. Often the third-party payment website has a different logo, design, UX etc and may include a charge for the payments processing. This may become a huge setback to conversion as many customers might abandon the transaction owing to security concerns regarding the new portal or might be unwilling to bear additional charges. 

• Navigation: It would be prudent for merchants to opt for a well-integrated payments gateway in the same website itself to ensure smooth navigation for the customer. 

• Better control: This would lead to better control over the purchase process and a higher probability of purchase completion at the checkout page. 

• Hurdle-free is key: As a thumb rule, the higher the number of steps a customer has to face up to payments, the greater is the risk of losing the customer. 

Simpl enables 1-click transaction completion and is integrated in a seamless manner with the merchant platform. This makes the payment process an almost invisible, prompt process. 

 

2. Excess Information

The key to higher conversion is to facilitate the customer to make the online payment and complete the transaction within the minimum time. 

• Multiple fields: Expecting the customer to provide excess information by filling out multiple fields or web pages would unnecessarily delay the purchase process. 

• Higher errors: Also, this might increase the scope of errors which might cause transaction failure and customer frustration resulting in cart abandonment. 

• UX matters: A superior UX is a must-have which can enhance customer loyalty and repeat purchases. This may be achieved through auto-fill options at the checkout page. 

• Progress is key: In the event of a multi-step checkout process, it would be prudent to maintain a progress indicator whereby the customer is aware of the balance steps remaining towards transaction completion.

Simpl eliminates the need to share the card number, name of the cardholder, CVV, PIN, expiry date. 

 

3. Inadequate security

This is non-negotiable in every digital payment transaction. With rising incidents of cybersecurity breaches and data privacy violations, customers would naturally expect utmost security and confidentiality of customer data. A secure online payment system would reassure the customer on data safety. 

• Valid Certifications: Security compliance certifications namely SSL certification, encryption technology and PCI-DSS compliant payment gateway would go a long way in indicating that the regulatory framework applicable for data security has complied.

• Regulatory reforms: RBI has introduced several reforms aimed at strengthening data security. Once the personal data protection bill becomes a formal Act, it is expected to be a landmark reform in further fortifying security measures. 

 Simpl requires a basic e-KYC in a secure, encrypted environment after the customer signs up.

 

4. Lack of customer support

Often customers face difficulty at the payments stage or has certain queries and is unable to proceed with the transaction. Customer support, both prior to and post transaction completion are vital to driving retention. The customer may abandon the cart if he/she is unable to obtain satisfactory responses via the toll-free number. It would be prudent for merchants to ensure top-quality customer assistance that immediately resolves customer grievances or queries. 

Simpl offers chatbot assistance and robust customer support via dedicated customer representatives. 

 

5. Limited choice

Offering credit cards or debit cards are passe as they bring the added hassles of carrying multiple cards, remembering card details, paying an annual maintenance fee, and facing the risk of high penal interest in case of delayed payments. Along with product quality, customers prioritize convenience and choice. An integrated payments network that is easily integrated across multiple reputed merchants or a payments option that enables credit-enabled purchases or interest-free instalment repayments are payments choices that are most preferred by customers. 

Simpl enables merchants to build trust-driven relations with customers by offering PoS financing with an interest-free payback period. Plus, customers can choose to repay in flexible instalments without extensive paperwork or a tedious credit assessment process.

 

6. Not mobile-friendly

A study by Invesp reveals that globally an estimated 1.6 Bn customers use mobile devices to shop online. This is one of the key reasons behind the popularity of mobile apps as an e-shopping mode. It is vital to ensure that the checkout page is both desktop friendly as well as mobile compatible.

Simpl is a mobile-first digital payments network that is integrated with reputed merchants across multiple product categories.

 

Putting the customer first

It is important to put oneself in the customers’ shoes while designing the merchant website, creating the UX, displaying the product catalogue and most critically, integrating the payments process. Generally, online website visitors broadly comprise 2 categories

Online browsers who take their time to study the product, compare with peers, and read the reviews before making buying decisions

Quick digital shoppers who know what they need and have already decided to buy 

It would do well for merchants to provide a superior payments experience to retain and ensure that the latter customer profile does not drift away from the website to rival merchants. Since time is money for most online buyers, it would be prudent to include a single-page checkout and a simple, user-friendly payments gateway.


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