Retail Reflections

Painless Payments: The Path to Customer Loyalty and Brand Experience

Painless Payments: The Path to Customer Loyalty and Brand Experience

Why having a secure online payment method drives loyalty and helps deliver great customer experience

Customer experience, customer journey, engagement, loyalty, in-store experience, frictionless commerce…

These have quickly become far more than just buzzwords. In fact, they are all areas where you must excel if you wish to have any chance of success in the ultra-competitive world retailers now face.

Because today, your customers aren’t just more demanding, their expectations are off the scale. Slip up just for a moment and they’re beating a path to your nearest competitor quicker than your chatbot can muster an apology.

By the year 2020 customer experience will overtake price and product as the key brand differentiator


According to a Walker study, by the year 2020 customer experience will overtake price and product as the key brand differentiator.

Against such a backdrop, retailers better be on point with every aspect of their offering. And providing customers with an easy, smooth path to purchase is fundamental, whether this be in-store or online.

However, that better experience comes to a shuddering halt when we’re the victim of fraud. That’s when our attitude changes.

And who do we blame? The merchant of course.

The Struggle for Balance

Take the UK as an example. Here, card-not-present (CNP) transactions i.e., those which are not chip and pin or swiped but manually keyed, represent 72% of the total credit and debit card fraud.

According to statistics published by UK Finance, losses from fraudulent CNP transactions totalled £205.5 million in the first half of 2017, 19.7% up from just two years earlier. £154.5 million of this was from e-commerce, mail and telephone orders.

In the U.K. someone is defrauded every fifteen seconds

UK Finance

But here’s the problem: despite this rise in fraud, where criminals are becoming ever smarter in cheating the banks’ systems, consumers still seek that easy path to purchase.

Thus, successful ecommerce is all about balancing reliable security with customer convenience; not an easy circle to square. 

The problem is that fraud prevention depends on robust authentication. And more often than not, authentication processes can be slow and complicated, introducing pain for consumers and merchants alike.

But it’s not all doom and gloom; hiding the complexity whilst at the same time minimizing the number of challenges and friction within the authentication process can reduce the number of false declines – made possible via the latest machine learning technology.

It’s All About the Experience

It starts with the 3-D Secure protocol, which just got a major upgrade to EMV 3-D Secure, which is also known as 3-D Secure 2.0.

EMV 3DS enables merchants, payment processors and other players to share massive amounts of anonymous transaction data, allowing for a clearer picture of the traits that separate legitimate transactions from fraudulent ones.

Companies like CA Technologies, A Broadcom Company, who co-invented the original 3-D Secure, have built artificial intelligence and machine learning that leverages this rich 3DS data. Their authentication platform delivers not only a seamless and convenient payment experience but it can also review, approve or flag transactions as suspicious – in real time.

The battle against fraud just got tougher; it’s worth readying your processes for EMV 3DS now to help build the foundation you need to find the right balance between customer experience and e-commerce security.

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