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R E TA I LHow to optimise yourpayment experiencefor mobile

MenuClick on the titles to jump to a section01 The Mobile Payment Journey02 Learning from app experiences03 Building on trust04 Ge ing personal05 Improving purchase speed06 Removing payment friction07 Key tips08 Research and next steps

01The MobilePayment Journey—It’s estimated that by 2021 smartphones will outnumberhumans*. Shoppers are increasingly moving toward theirmobile to shop – mainly fashion and electronic products.Major retailers are investing in mobile technologies,recognising that the pay-off for converting a shopper can besubstantial.Though brands spend significantamounts on marketing strategies toget shoppers to download their app oruse their mobile site, ultimately, the salehappens when they pay.We asked 16,000 smartphone users in10 markets how they like to shop online,identifying their pain points and habits togive a broad vision of what retailers needto know about app-based and mobileshopping.Is enough a ention being given topayments as part of the journey?In this report series, we’ll share insightson how to optimise the mobile paymentjourney, explaining what shoppers expecton a country-by-country level and howthe top players in the retail industry makethe most of the mobile opportunity.*CCS forecast, h hones-humans-2021-according-report/THE MOBILEPAYMENT JOURNEYLEARNING FROMAPP EXPERIENCESBUILDINGON TRUSTGETTINGPERSONALIMPROVINGPURCHASE SPEEDREMOVINGPAYMENT FRICTIONKEY TIPSRESEARCH ANDNEXT STEPS

02Are you giving your shoppers what theywant?Learning from appexperiencesIf you're not prioritising a transactionalapp for your brand, you're not pu ingyour best face forward.—To deliver the best mobile experience, it’s not enough to justhave a mobile-optimised website. 47% of shoppers told us thatif a retailer doesn’t offer a good mobile experiencethey’ll go to a competitor.Shoppers in the markets we surveyedshowed an increasing trend towardthe use of mobile apps over a mobilebrowser, with 68% saying their lastpurchase was made using an app.Even more importantly, 19% of shopperssaid they won’t buy from a retailer whichdoesn’t have an app.When asking shoppers why they prefer topay in-app, the 3 top reasons given werespeed (46%), they’re more user-friendly(36%) and because their payment detailsare saved (23%).Compare to those that bought on amobile website, rather than in-app.Though speed is again a huge driver(26%), only 18% think mobile buying ismore user friendly than the alternatives.And another 18% said they bought on amobile website because they didn’t havea choice!THE MOBILEPAYMENT JOURNEYLEARNING FROMAPP EXPERIENCESBUILDINGON TRUSTGETTINGPERSONALIMPROVINGPURCHASE SPEEDREMOVINGPAYMENT FRICTIONRetailers need to think about the userexperience of apps to increase mobileconversion.How to get shoppers to downloadyour app: Offer discounts, loyaltyschemes and exclusive offersto give shoppers an incentiveto download Make it free Engage with your shopper ona regular basis by creatingexperiences and content to bringthe shopper back19%KEY TIPSOF SHOPPERS SAID THEY WON’TBUY FROM A RETAILER WHODOESN’T HAVE AN APPRESEARCH ANDNEXT STEPS

03Building on trust—Our research revealed that 72% of shoppers would onlydownload an app from brands they trust. Retailers must lookat ways to build trust with the shopper.First impressions count, and a shopper’sfirst impression of your app is on theapp store. A healthy star rating fromexisting users can entice new users totrust the app.Retailers can also use the app descriptionto tell shoppers that their preferredpayment type is available, as 24% ofshoppers said they dropped out in thelast 12 months because their paymentmethod of choice wasn’t available.Transaction security also plays a big rolein building trust. 40% of mobile shopperssaid the main reason they would stopa purchase would be if they felt themobile app didn’t have sufficient securitymeasures in place.THE MOBILEPAYMENT JOURNEYAnd 17% dropped out from a mobilepurchasing journey in the last 12 monthssolely because of security concerns.Tips for building trust:Retailers can build trust from thehomepage, meeting shoppers'expectations when it comes to security,particularly on mobile apps. Add ratings and payment61% said they would expect to seedigital security logos upfront during appstartup. And 24% dropped out in thelast 12 months because their preferredpayment method wasn’t available.and security logos on thehomepageinformation on the app storedescription61%OF SHOPPERS SAID THEYWOULD EXPECT TO SEE DIGITALSECURITY LOGOS UP FRONTDURING APP STARTUP Offer familiar payment methods Confirm the purchase withan email or textPost-purchase security is also keyto building trust – 75% of shoppersexpect to receive an email, and 47%expect to receive a text confirming theirtransaction.LEARNING FROMAPP EXPERIENCESBUILDINGON TRUSTGETTINGPERSONALIMPROVINGPURCHASE SPEEDREMOVINGPAYMENT FRICTIONKEY TIPSRESEARCH ANDNEXT STEPS

04Ge ing personalWith preferences stored, app experiencesare more targeted, meaning shoppers canbe exposed to relevant products and theycan go from browse to buy in a ma er ofseconds.Tips for personalising the mobileshopping experience:Shoppers are now accustomed to finding the product theywant, when and how they want it – and quickly. To achieve this,retailers need to create shopping experiences targeted towardthe individual customer by utilising shopper data.Did you know that 50% of globalshoppers prefer to see purchaseconfirmations by email? Except inChina and South Korea, where textcommunications are the method ofchoice - 25% and 22% respectively. Reduce the information request—Even though tailored recommendationsand individualised shopping experiencesare common practice, 17% of shoppersstill say they don’t want to save theirpersonal details due to concerns oversharing sensitive data. This is even morecommon in developing countries, orfor example in Russia where 28% hadreservations.So how can retailers gather theinformation they need to offer theexpected experience and still alleviatesecurity and data concerns? Build userprofiles into your shopping experienceto store personal details for mobile andapp-based browsing.THE MOBILEPAYMENT JOURNEYSo many retailers have taken thisroute that it’s become an expectationfor shoppers using an app or mobilewebsite. 57% of shoppers say theywant to store payment details to makerepeat purchases quicker and easier.Convenience rates so highly that 23%of shoppers would not buy more thanonce from a retailer if there wasn’tfunctionality in place for payment detailsto be stored.57% Give shoppers the choice to setup a user profile and save paymentcredentialsand auto-fill as much as possible Personalise the communicationchannel by countryOF SHOPPERS SAY THEY WANTTO STORE PAYMENT DETAILSTO MAKE REPEAT PURCHASESQUICKER AND EASIERThis is even more important when sellingfood, as 19% of shoppers buy themonce a week or more, as well as clothes,as 31% of shopppers buy them every oneto three months.LEARNING FROMAPP EXPERIENCESBUILDINGON TRUSTGETTINGPERSONALIMPROVINGPURCHASE SPEEDREMOVINGPAYMENT FRICTIONKEY TIPSRESEARCH ANDNEXT STEPS

05So what do shoppers value the mostwhen it comes to quick checkout?Improvingpurchase speed64% of shoppers say they want to savetheir personal details to make it quickernext time and 28% say that they don’twant to re-enter their details again.—Nearly half of all shoppers say they’d liketo use biometrics to make the paymentquicker.92% of shoppers rate their experience as being goodon mobile. When asking them why, speed andfunctionality rated highly.Shoppers are becoming increasinglyfamiliar with the concept of fingerprintscanning and facial recognition. Retailerscan capitalise on this by offeringbiometric-enabled eWallets to helpreduce the number of steps throughcheckout.Drop outs are highly influenced bypurchase speed. Additionally, whenasked why else they dropped out, 19%of shoppers said they had to enter toomuch information, while 12% said it wasdue to re-directs.This goes to show the consequences canbe fatal when navigation doesn’t workproperly.Fractured navigation also featured asthe top reason a buyer would drop outin the future - with 52% saying theywouldn’t buy from a retailer if redirectedat payment.Tips for increasing purchase speed: Use auto directs on mobile soshoppers can only access themobile site Try to avoid re-directs and if notpossible, make sure they go tomobile-optimised pages only Offer eWallets, especially thosewhich are biometric enabled52%THE MOBILEPAYMENT JOURNEYLEARNING FROMAPP EXPERIENCESBUILDINGON TRUSTGETTINGPERSONALIMPROVINGPURCHASE SPEEDREMOVINGPAYMENT FRICTIONKEY TIPSOF SHOPPERS SAY THEYWOULDN’T BUY FROM ARETAILER IF REDIRECTED ATPAYMENTRESEARCH ANDNEXT STEPS

06Removingpayment friction—The average shopper has multiple apps, covering a wide rangeof interests. However, 71% have between only 1 and 4 retailapps which take payments. The majority of these requirepasswords to access user profiles, or to complete a purchase.Shoppers are faced with creating andremembering countless log-in details.And if payment credentials are notstored, they need to use a small screento enter all the payment details.Unsurprisingly, 23% of shoppers will stopa mobile purchase if they have to enterall their payment details. They're eagerfor safe, frictionless ways to pay, whilestill maintaining an element of control.This is even more prominent in India andSouth Korea, where 30% of shoppers willdrop out.THE MOBILEPAYMENT JOURNEYDid you know, 66% would like to receivea notification if their payment details areout of date.To avoid these stumbling blocks, wefound that 47% of shoppers globallywant to use biometrics to make thepayment quicker, with 58% believing itwill provide a greater level of security.Tokenised card details stored bymerchants keep users from re-enteringthem each time they want to buy.Additionally, biometric data allowspurchases to be authorised fastervia a fingerprint, an iris scan or facialrecognition.LEARNING FROMAPP EXPERIENCESBUILDINGON TRUSTGETTINGPERSONALIt’s clearly beneficial to automatepayments and make them invisible, butso is the importance of providing somecontrol to the shopper. This is what wecall a translucent payment.The benefits of invisible payments toretailers are clear:If retailers reassure shoppers that theyretain an element of control, the pay-offcan be huge – with shoppers spendingmore, more o en. Implement one-click solutions to23%IMPROVINGPURCHASE SPEED Use card tokenisation andbiometric authentication to createless frictionmake transactions quicker Let the shopper know when theirstored details are out of dateOF SHOPPERS WILL STOPA MOBILE PURCHASE IFTHEY HAD TO ENTER ALLTHEIR PAYMENT DETAILSREMOVINGPAYMENT FRICTIONKEY TIPSRESEARCH ANDNEXT STEPS

07Key tips—Retailers need to step up theirgame around performanceon mobile, as many still aren’tusing best practices formCommerce - both on mobilesites and ERPROFILERead moreRead moreRead moreRead morePAYMENTPAGECONFIRMATIONSUPPORTRead moreRead moreRead moreThrough this report we’ve coveredsome of the main topics that you needto address when creating the perfectmobile purchasing experience.Click on the various mobile paymentjourney stages to find out moreTHE MOBILEPAYMENT JOURNEYLEARNING FROMAPP EXPERIENCESBUILDINGON TRUSTGETTINGPERSONALIMPROVINGPURCHASE SPEEDREMOVINGPAYMENT FRICTIONKEY TIPSRESEARCH ANDNEXT STEPS

1/7Upfront information1Show which payment methods youaccept and security logos on yourmobile site homepage and app2Display additional cost, returnand delivery information upfrontto reassure customers of anysecurity concernsTHE MOBILEPAYMENT JOURNEYLEARNING FROMAPP EXPERIENCESBUILDINGON TRUSTGETTINGPERSONALIMPROVINGPURCHASE SPEEDREMOVINGPAYMENT FRICTIONKEY TIPSRESEARCH ANDNEXT STEPS