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Frictionless checkout: how payment optimization contributes to e-retail success

Frictionless checkout: how payment optimization contributes to e-retail success



A shopper found his way to your webshop. He browsed your products with interest, and looked at your recommendations. After reading the reviews, he placed his selected items in the shopping cart. But just as he was about to enter the final checkout stage, he left your webshop.

Cart abandonment is one of the biggest challenges for online retailers, and payment friction is one of its major causes. The solution to this conversion problem is to remove a maximum of barriers from the checkout process, but how exactly do you make buying easier for buyers and selling easier for yourself?


Optimizing convenience on all devices

A frictionless payment experience starts with a well-designed payment page. The page must be as easy as possible to navigate, regardless of what kind of device the customer is using. To optimize conversions on both desktop and mobile devices, make sure that you use a responsive design which eliminates scrolling and makes forms easy to fill.

Checkout is a key element in your brand's user experience, and ideally the payment page should be customized to match your store's look and feel. An externally hosted payment page can greatly simplify your setup and reduce your PCI scope and costs, but make sure your payment service provider offers full flexibility and extensive customization options.


Meeting local expectations

If your e-retail business caters to international customers, another key element of frictionless checkout is to fully localize the experience.

Presenting the payment page in the local language helps build shopper confidence. The same is true for local currency: if buyers cannot see your prices in the currency they are familiar with, conscious or unconscious conversion calculations will add friction to the process.

Most importantly, your international customers must be able to pay with the payment methods they like and are accustomed to. Every country has different preferences, and sometimes your buyers do not even have a choice. For example, only about one in five Brazilians will be able to pay you at all if you only accept international credit cards.

Localizing the payment experience in each of your target markets might seem like a daunting enterprise, but it does not have to be. The right payments partner will be able to take most of the intricacies of international payments off your plate.


Balancing security and convenience

One of the main obstacles to a truly frictionless checkout experience is the need for merchants to secure payments and combat fraud. For example, 3D Secure is often considered a conversion killer: while it enables strong authentication and guarantees payment to the merchant, it does create friction by adding an extra step to the payment process.

When implemented properly, however, 3D Secure and other payment security measures do not have to represent a binary choice between increased fraud or lost sales, but can be used to mitigate fraud risk in a more intelligent manner. An experienced payment service provider can guide you in finding the right balance between payment security and customer convenience.


Looking forward

Payment collection is a rapidly changing and highly innovative industry. New payment technologies continuously transform and facilitate the checkout experience. For example, more and more omnichannel solutions enable you to offer your buyers a seamless experience across all your platforms. Payments are also increasingly integrated in users' daily online activities, to the point of becoming "invisible".

When choosing your payment service provider, make sure to team up with a partner that has the resources and capabilities to stay on top of new payment technology innovations in the foreseeable future.

To learn more about best payment practices for growing e-retail businesses, download our white paper "How payments can make or break your online expansion".