Authentication & Security

The Plague of Payment Paranoia Appears to Be in Remission

AnthropologieDepartment Manager

When topics of compromising data breaches or malware corruption make the headlines in the media, the coverage usually concerns big organizations like Sony, Target or Home Depot. Oftentimes, consumers have suppressed the infliction and may have thought it was bound to happen; some might react with disbelief or maybe have no reaction at all. Becoming desensitized versus overtly paranoid is an interesting paradox to consider when observing the synthesis of modern-day consumerism.

The United States has reported fewer credit card theft victims in 2015 than in 2014, according to the latest Gallup Crime poll conducted during October 7-11, 2015. Despite the drop in reported credit card theft victims, the survey revealed that amongst 13 separate questions referencing crimes, the two most disconcerting worries of Americans are still directly related to FinTech security. “Stolen credit card information from a store,” and “being a victim of identity theft” topped the charts and left “getting murdered” at 17% and “being assaulted/killed by a coworker/employee where you work” at the bottom with 7%.

An increasing numbers of consumers are browsing & making their purchases online and are clearly embracing e-commerce with 200 million online shoppers in the US, spending nearly $600 billion, according to the 2015 Consumer Trust Survey Report. As Americans’ appear to be on the path to purchasing with less resistance than in times past, in the context of online shopping and payments, security is considered paramount.

However, findings from a recent survey conducted by Worldpay reveal several factors to be fundamental determinants in gaining the favor of consumers throughout various stages of a shopper’s experience.

Reinforcing security from the homepage builds brand engagement with shoppers. About 68% of shoppers felt that seeing payment authentication and digital certification logos would make them feel more secure; 64% said a well-known website or reputable brand, and 55% of shoppers said that websites which accept payment methods that they knew would make them feel more secure.

US shoppers want to know how their data may or not be used. Shoppers perceive value in showing loyalty to brands. 60% of shoppers have created or used an online account in the last 12 months, and 47% of shoppers are happy to save their details, knowing it will be quicker and easier to shop the next time. This shows that retailers can further drive brand loyalty by providing information on how data may or may not be used.

Shoppers want to know early on in the process how they can pay; they want to see payment logos displayed on the homepage. So, when they reach the checkout, they also want the same logos to be easily visible. About 64% of shoppers would not continue to purchase if the payment methods displayed at the checkout were not consistent with those shown on the homepage, and 40% would immediately abandon their purchase if their preferred payment method was hard to find.

At the checkout, shoppers can sometimes be redirected to a third-party site to complete the payment. In these instances, shoppers are very conscious of security, so they want to be kept informed. Over a quarter of shoppers in the US said they would be so concerned about security when redirected that they would abandon their purchase; 79% of shoppers in the US said they read messages about what will happen next in the payment journey, and 57% of shoppers said that this information is very important to them.

Shoppers in the US need information when payment errors occur to prevent dropouts. When payment-related errors do occur, the majority of shoppers in the US will attempt to resubmit the details for payment. But the dropout rate at this stage is also higher than average. About 38% of shoppers would drop out of the checkout if they get a payment error. Retailers can work to overcome these concerns by showing detailed error messages as they are entered and most importantly, minimizing the amount of data entry required by pre-filling information where possible.

Shoppers want to know if their transaction has been successfully processed with an email confirmation of payment. With shoppers keen to know payment-specific details, retailers can include masked card numbers, transaction references and payment amounts so shoppers can easily reference their purchase and verify details.

Shoppers in the US value a wide range of support tools, offering shoppers a range of support tools and the ability to access relevant & up-to-date information on payments will help minimize the impact of any payment errors.

As we are now in Q4, the last big push for retailers to capitalize on 2015 consumers is rapidly coming to a head. Retailers seeking to gain business from potential shoppers are going to have to offer an exceptional user experience, protection, transparency, consumer education and engagement.

Ruth Pender

AnthropologieDepartment Manager

Ruth Pender is a former Community Manager at MEDICI (f.k.a Let’s Talk Payments).

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