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Arguably, a great payment experience is the element that makes the least impression on the user, but it’s no less important. When consumers are using mobile devices, their attention is often split between a number of different activities. A payment process which is overly complicated or inconvenient

Mobile payments should be easy, but often aren’t

may prevent the transaction from being completed, even when items have been placed in the consumer’s virtual basket – a phenomenon measured by retailers through the basket conversion rate metric. A smoother payment experience is likely to result in a higher basket conversion rate. The fewer steps a particular transaction requires, the fewer the opportunities for the consumer to abandon the transaction. Conversely, a payment experience that involves multiple actions, and the need to remember and input passwords and card details, quickly starts to feel like hard work. Simply put, frictionless payments do not get in the way of the purchase experience. Mobile payments seamlessly integrate into the purchase journey, masking the underlying card or account number tokenised for safe storage and security. Successful examples include PayPal, Apple Pay and Android Pay, as well as Pingit. Another interesting development is the Zapp Pay by Bank app scheme, which is being launched by Barclays and Lloyds Banking Group. When the customer opens their banking app, he or she will be able to view their bank balances before making a payment. The system is being hailed as an alternative to debit card payments.

ANALYSIS

“A PAYMENT EXPERIENCE THAT INVOLVES MULTIPLE ACTIONS, AND THE NEED TO REMEMBER AND INPUT PASSWORDS AND CARD DETAILS, QUICKLY STARTS TO FEEL LIKE HARD WORK” It’s also worth noting that some people do not like giving out their personal details during a transaction and do not want to initiate a full relationship with a particular retailer. Many customers prefer an anonymous payment experience, and businesses may increase basket conversion rates significantly by making guest checkout options available. Finally, with so many different payment types available, a key challenge for retailers is knowing which ones they should use. No one can offer all of the payment methods currently available – but nor can businesses afford to offer just one or two. The perfect solution will be different for every business, but will likely be a question of picking a suitable selection of payment methods based on the company’s specific needs. Visit www.barclayscorporate.com/ pingit to find out more about frictionless payments and how Barclays can help you MM choose the best strategy for your business.  MM

@mmmagtweets

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Mobile Marketing September 2016