• Terry Rourke, Senior Product Marketing Manager at ACI Worldwide


• 12.12.2022 04:00 pm
#payments

In today’s fast-paced, digital-first world, it doesn’t make sense to have a mobile app without payments. Sending customers out of an app to make their payments in a resized form is challenging at the best of times, even more so if they are doing many tasks at once.

Companies like Amazon and Uber have set the payment standard by getting their customers used to a very simplified payment process. As a result, we’re all now less inclined to go through extra steps if it can be avoided. And if we can avoid any ‘fat fingering’ the wrong number on our card, leading to an inevitable declined payment, we do so. Research from Statista also found that 30% of shoppers will leave their cart if they have to put in their card details again.

With this in mind, alongside the payment standard set by BigTechs, brands need to put improving the check-out experience of mCommerce customers at the top of their list.

What's the ultimate goal for payments?

The end goal for payments is one-click, embedded or invisible payments. We should eventually get to the stage where the payment process is seamless and second nature for the consumer.

The average customer now expects their shopping experience to happen with no hiccups. However, making the payment is still one step in the experience that can lead to a delay. In the second quarter of 2022, around 80 percent of orders made on mobile devices in the UK did not go through. It’s most likely the payment process played a big role here.

When customers are on the verge of making a payment, they tend to have a second thought on the purchase, which can be averted with reviews. But when it gets to the payment screen that doubt can come back in. To avoid that risk, merchants can expedite the process by including embedded payments.

Why embedded payments must be prioritised

According to Statista’s forecasts, retail sales from mCommerce are predicted to exceed £100 billion by 2024. A lot of this is said to be contributed to the younger generation having access to mobile phones. In 2021 it was reported that almost every individual between 16 and 34 had a smartphone. And results from an OuterBox survey show that eight in 10 smartphone users have purchased something online using their mobile phones in the last six months. The efficiency one-click payments provide is a clear driver behind the increase in mCommerce.

While one would assume this it is an obvious move for merchants to make, according to OpenPayd’s survey, only 4% of companies surveyed currently offer embedded payments. However, 83% do have plans to implement it. While this is a positive step, there are a few things to note when embarking on this project.

A lack of internal funding could be a key barrier to slowing down the implementation of embedded payments. Implementing innovative technologies can be a financial burden for many merchants and could be put on the back-burner given the challenging economic landscape. Further, bringing in this type of technology can lead to complications with merchants’ existing payments technology. However, with the right payments partner, merchants can retain their existing payments technology without issue while simultaneously updating it to be able to offer embedded payments.

mCommerce is forecasted to have a bright future, and as mobile phones have become ubiquitous with our daily lives, being able to make quick and easy payments from your phone is essential. Those who were ahead of the curve and have already implemented one-click payments into their business's arsenal, have set themselves up for success. However, there are challenges when it comes to adopting such technologies. But with the right partner and technology, merchants can overcome these barriers and introduce embedded payments into their mCommerce offerings.