Webinar recap: Optimise checkout experiences and payment methods. A comprehensive approach

In the world of online retail, the checkout process plays a pivotal role in determining conversion rates. While much focus is placed on driving traffic to the checkout page, many merchants still struggle with ensuring customers complete their transactions. During a recent Merchant Risk Council (MRC) webinar, industry experts explored how businesses can optimise payment methods and improve the overall user experience at this critical stage. This blog delves into their insights, offering practical strategies for merchants to boost conversion rates and enhance customer satisfaction.

Pedro Bennasar from Vestiaire Collective shared that data is vital for understanding why customers abandon their carts. Whether it's due to a technical glitch, a confusing interface, or a lack of trust, identifying where customers drop off is key to improving the checkout process. By leveraging detailed data, businesses can fine-tune their approach and create a smoother, more efficient transaction experience.

Moshe Winegarten, Chief Revenue Officer at Ecommpay, highlighted the importance of splitting data into two main categories: those who abandon checkout before completing payment and those who experience failed transactions after submission. For the former group, optimisation strategies might include offering local payment methods, displaying prices in the customer’s currency, and ensuring a user-friendly interface. For customers who attempt payment but face failures, solutions like optimised transaction messages, smart retries, and understanding a customer’s bank exchange rate can improve success rates and reduce declines.

John Rutter, from Mastercard, emphasised the importance of detailed decline data from payment providers like Visa and Mastercard. This data reveals why payments fail (insufficient funds, incorrect details, etc.), helping businesses reduce friction and increase checkout success. By analysing declines and adjusting processes, merchants can boost trust and conversion rates.

Pedro also addressed the need to optimise the checkout experience based on the device used. Mobile users, for example, expect a fast, streamlined checkout, while desktop users are often more patient. Research shared by Moshe revealed that tablet users had the highest conversion rate (63%), followed by desktop (61%) and mobile (57%). This difference underscores the importance of tailoring the checkout process to suit each device for optimal results.

From the webinar, the following strategies emerged as essential for optimising the checkout experience:

When it comes to selecting payment methods, it's essential to align choices with your business model and customer needs. Pedro advises merchants to consider their average transaction value and customer preferences. For example, buy now, pay later (BNPL) options are ideal for higher-value purchases, while simpler digital wallets can drive more transactions for everyday items. Tailoring payment methods to your customers – not offering every available option – will make the experience smoother and more effective.

Adding more payment options doesn’t have to mean added complexity. Dynamic checkout solutions allow businesses to display relevant payment methods based on a user’s location, streamlining the process and boosting conversion rates. For instance, in markets like the Netherlands and Germany, localisation is key, with specific methods like iDEAL and Bancomat preferred. This tailored approach ensures a smoother checkout experience and improved results.

One-click payment methods, though convenient, present a paradox. While they speed up checkout, they limit opportunities to gather valuable customer data. Research shows that offering one-click payment options can still lead to higher conversion rates, even if it seems counterproductive to limit data collection. Balancing convenience with the need for customer insights is a challenge, but one that can significantly improve the checkout process.

A key question for merchants is whether to offer guest checkout or require account creation. While guest checkout is faster and reduces friction, it can limit personalisation and customer data collection. Pedro suggests that merchants balance both approaches: guest checkout for speed and convenience, and account creation for better data management and a smoother payment process in the long run.

As mobile shopping continues to rise, offering mobile-friendly payment options like Apple Pay and Google Pay is crucial. These methods, along with newer tools like Click to Pay, are gaining traction. For merchants, offering a range of mobile payment solutions is essential to enhance the checkout experience and increase conversions.

In conclusion, reducing cart abandonment and improving conversion rates requires a deep understanding of your customers’ needs and preferences. By offering a mix of relevant payment options, optimising the checkout process for different devices, and using data to drive decisions, merchants can create a seamless, customer-friendly experience. Ultimately, the goal is to strike a balance between convenience, security, and personalisation to boost both immediate conversions and long-term customer loyalty.