Having an effective and easy-to-use e-commerce platform is one important way for retailers to distinguish themselves from the competition. As part of this, an online checkout experience that is both smooth and secure is increasingly what customers expect. If their experience is not simple to navigate, it has a direct impact on business: 18% of online shopping carts are abandoned because of complex payment processes.1 This rate of order-fulfillment failure is significant for any business and can ruin holiday season sales.
However, just making payments simpler without taking security measures to protect credit card data exposes businesses to other risks. A further 17% of consumers abandon an online purchase because they do not trust the website with their credit card details. Retailers’ e-commerce platforms must have end-to-end solutions that make online shopping a safe, trustworthy experience. Yet there are now so many different payment options and authentication systems available, it can be hard for customers to know which ones are legitimate and secure. This is why having credible security measures in place, measures that also provide a great customer experience, is such a powerful differentiator.
Using token-based payments technology can help optimize the online consumer experience. Because card information is stored on a secure token, the retailer is simply passing that token to the payment provider. The provider decrypts it and uses the card data to create the transaction, mapping the information against card-on-file (CoF) data for authentication. It is superior to encryption technologies because it enables higher authorization rates without compromising on security measures. This solution provides a win for both the consumer and for the retailer.