August 24, 2016
CNP Expo: Payment Optimization, The New E-Commerce Revenue Driver?
May 20, 2014
Adyen’s Luke Salinas, who moderated the Tuesday morning Payment Optimization panel at the CNP Expo, began by asking, how should businesses think about payments and payment strategy to drive revenue?
The panelists agreed on the importance of accepting multiple payment methods as a way to boost revenue. If customers don’t see their preferred payment method at checkout, they are more likely to walk away without completing the transaction. Dennis Keller of Garmin International said Garmin recently began focusing on adding alternate payment options and has already seen growth from accepting just a few new forms of payment in the U.S.
Scott Engel of Rhapsody International stressed letting “customers in to pay effectively, quickly, easily, wherever your business is.” He noted that partnering with the right PSP is key, particularly for international businesses. “You need a partner who understands your needs and the local payment methods in the countries you’re in or trying to expand into.”
Michelle Chernyavsky of Facebook observed that “you don’t need every single payment method in every country; you need the right payment method in that country. Too many payment options can be as bad as too few.” She pointed out that accepting the payment method customers prefer creates a level of trust and comfort between a company and its customers in that country.
Engel and Chernyavsky addressed the challenges of international recurring payments. Simply finding the right payment method may not be enough, they said—figuring out the right frequency and timing of payments in each country is also crucial. For instance, in some countries, workers may get paid weekly, in which case you may want to collect a payment weekly rather than monthly to optimize your rate of successful charges.
For Garmin, Keller observed that international expansion has entailed some localization. Having someone on the ground who is familiar with the language, laws, and culture of the target country is important, because it allows you to set up a payment system online that will feel familiar to customers in that country. Chernyavsky agreed, and concluded that “setting up these international payment systems properly can be really difficult, but if you do it right, you will see increased revenues.”