eCommerce payments | Cardless checkout for online retailers in 2022
In 2021, the fashion industry had the third-highest cart abandonment rate, as high as 88.57% (SaleCycle, 2021). This was significantly higher than other industries such as cosmetics, consumer electronics or DIY, which saw an average of 79%.
The reasons for cart abandonment can vary, but many customers will drop a purchase because of complex checkout processes, high fees or inadequate payment options. Customer conversion is still a real challenge for retailers to overcome, as more than 8 in 10 customers abandon their online checkout.
In this blog post, we’ll discuss the benefits of cardless payments for online retailers and how Yaspa's platform helps businesses solve their checkout challenges.
Why would shoppers pay with Yaspa and not a card?
At Yaspa, we use open banking APIs to facilitate account-to-account transactions between businesses and their customers. As a result, these transactions are smoother, safer, and far more cost-effective than cards. In short, we help your customer pay you directly from their existing online bank account by transforming a process that is often time-consuming and rarely a preferred option by either you or your customer.
Most shoppers, of course, generally prefer to pay by card (whether direct or through an e-wallet service). However cards, even though universal and familiar, bring their own headaches for both shoppers and sellers. We call them the 3 F’s of card payments - Friction, Fraud and Fees.
Friction at checkout
Online retailers always make the user experience a priority on their website, but they often forget the checkout process. Sure, payments might not be in the top five priorities for a retailer when it comes to creating the customer experience, but the right checkout solution will skyrocket your customer conversion. A frictionless payment option means that your customers go through the process of checkout much more quickly than they do with their cards. No pins, no card codes, no expiration dates.
Fraud at the checkout
Online card payments are often exposed to fraudulent activity when they are stored on a website. It can take a while for the customer to realise a data breach and it is usually the merchant that is left with the consequences. Yaspa’s payments are based on open banking technology where there is no intermediary between the two accounts. Account-to-account payments’ security lies in the banks’ APIs, which are as secure as the bank itself.
Fees at the checkout
Another inconvenience of card payments is the high fees. Card fees can be as high as 5%, depending on the card issuer - a fee typically absorbed by the retailer (though sometimes shared with the shopper). To give a bit of perspective, if you make about £1M annually from website sales through card payments, you and your shoppers can pay up to £50,000 just in card fees. Cardless account-to-account payments have the lowest fees in the market, less than 1%.
Why is paying with Yaspa better than cards?
- Easy checkout. Shoppers can pay easily and quickly with their mobile banking app, without having to get out their card. Buying their favourite products from their mobile or laptop has never been easier.
- Fraud resistant. account-to-account payments do not save any details on the website, unlike with card payments. With no stored card details, there is nothing to be hacked. Account-to-account payments use the banks’ APIs to transfer money safely.
- More payment options. Shoppers are looking for more payment options when shopping online. Using their card or PayPal is not always convenient, so giving more ways for your shoppers to pay you, will not lead them to drop the purchase and move to a competitor that offers them a variety of payment methods.
- Checkout integration. Yaspa's platform is typically integrated within a few days, with no set-up fees and it doesn’t require any training. PayBlox’s dashboard provides data-rich insights into your payments, eases reconciliation and flags any suspicious behaviour. We provide a range of different product packages, tailored to your needs and your budget.
- Great conversion. PayBlox is ideal for retailers that are trying to differentiate themselves by advancing their shoppers' online experience. Grow your payment pool and get customers through checkout with adaptable payment journeys. For one of our customers, our payments were able to double customer conversion from 35 to 70%.
- Peace of mind. We continually test our UX and customer journeys, so we can ensure simple and fast payments for your consumers with no impact on security. Unlike our competitors, we don’t just give you the infrastructure and leave you to implement the build yourself.
- We provide an end-to-end solution where we take care of everything, from initial set up to live - and obviously ongoing support if you need it.
- Our merchant directory. You’ll be included in the growing list of merchants offering Yaspa’s cardless payment options around the UK. Our directory will feature new merchants, special offers and is the perfect way to be promoted to a new market.
Yaspa: an open banking payment solution
Yaspa's platform provides the technology for secure, instant payments and an overall better customer experience. PayBlox is easily and quickly integrated with your business and your existing bank. We provide you with fully tested end-to-end UX optimisation to ensure you have a payment experience worthy of your brand. We are integrated with all major UK banks, and offer super-competitive pricing that will make a material difference against your existing card fees. If you are on Magento or WooCommerce then even better; you can integrate with us even quicker.
You can add Yaspa as a payment option at checkout alongside your existing providers. We work with many brands, large and small, across the UK and Europe, and would love you to try it in your business.
For a full demo, or just to ask a question, please contact us here.