Abandonment – it’s such a sad, lonely word. It makes one think of cute little kittens left on the side of the road or a rickety, empty old house falling apart piece by piece. Abandonment Rates – an equally awful term in the payments world – offer the same sad outlook for Ecommerce retailers. Shopping cart abandonment rates are scary high, with an average rate of 67.9% and even worse for mobile transactions – a horrifying 97%.
The list of reasons why shoppers are choosing to leave their carts full and walk away is long, and range from unexpected costs (56%) to concerns about payment security (17%). But there are additional factors outside of the shopper’s control, such as website crashes or excessive security checks, that can occur before an online payment can be made, leaving consumers frustrated and unable to complete the payment process.
Let’s look at the highly anticipated Lily Pulitzer for Target Collaboration, for example, which made its debut April 19th online and in stores. Diehard Lily lovers, who sat ready to make their online purchases, were left hanging out to dry as the demand overwhelmed Target’s site and mobile shopping app, shutting them down and then limiting the number of shoppers who could access the site. The results? Highly frustrated consumers, rants on social media detailing the horrible online fail, and promises from once-loyal consumers to shop elsewhere in the future.
Whether it’s the consumer’s decision to bail or an inconvenient process that causes shopping cart abandonment, it is obvious that there is a very small window for mobile payment success – a mere 3%. That is a harsh reality, considering that recent data shows that 43% of tablet and 34% of smart phone users are making payments online.
They say difficult scenarios prompt great ideas. The old English proverb – necessity is the mother of invention – holds true today in m-commerce, as companies are creating innovative technologies to overcome the barriers of shopping cart abandonment.
Companies like mobile app provider Paydunk are blazing the way in m-commerce. Paydunk allows shoppers to simply enter the items they wish to purchase from a website into the shopping cart. When it comes time to pay, they hit the Paydunk button, enter their PIN, and confirm on their phone. Checkout is done in a few touches – without logins, using a keyboard, or sharing any personal data.
Simple? Check. Convenient? Check. Secure? Let’s not forget how important secure payment processing is since fraudsters certainly won’t. In Paydunk’s case the, consumer information is very secure. Paydunk encrypts all of the user’s personal and financial information and then stores it in the app on the user’s phone – eliminating the need to create online accounts or give card data information to a third party – thus reducing fraud risk.
Paydunk’s app is brilliant. But even the smartest technology companies know that there are other measures that can be taken to ensure a holistic approach to securing mobile payments.
Integrated payments is certainly one of them. Why are integrated payments so important? Because companies that use an integrated payment solution from a PCI-DSS certified vendor are ensured that all exchanges of payment data are secure and PCI compliant with PCI security standards, which mandate that businesses safely encrypt and store PIN numbers, CVV2 numbers and magnetic stripe data.
Paydunk recently partnered with Bluefin for integrated payment processing through their mobile app – and to leverage the security aspects of Bluefin, including PCI validation for P2PE, tokenization, transparent redirect and more.
They say the future of retail is mobile – hopefully Paydunk and Bluefin can pave an easier path!