Hello everyone, I'm Aude Vicaire, and I welcome you to Instant Paiement.

Today, I will talk about e-commerce payments and the best practices to implement in order to optimize the conversion rate, ensure an optimal payment experience for your customers, and increase your revenue.

First of all, let's look at some numbers: e-commerce is thriving despite a slight post-COVID slowdown. In fact, the figures from Fevad published in February 2023 show the growth of online sales websites in France.

There's a 5% increase compared to 2021, resulting in 10,000 new e-commerce sites. This generates a turnover of 147 billion euros, up by almost 14% compared to 2021. This increase is benefiting from a rise in the average basket value, which now reaches 65 euros. It's even more crucial for a merchant to stand out in order to exist.

Thus, apart from design, website construction, or even offerings, one of the most crucial points to consider is the payment stage. Here are three practices to improve the e-commerce conversion rate.

PSD2 EXEMPTIONS

Firstly, implementing PSD2 exemptions. A reminder: Since 2021, e-commerce merchants are required to comply with the PSD2 directive, which mandates strong customer authentication to validate their purchase. The directive aimed to enhance online purchase security. However, since the purchasing experience was affected, e-commerce merchants feared a decrease in their revenue. We have all likely experienced this by abandoning a cart due to the inability to validate the transaction. To address this issue, there are PSD2 exemptions, notably the Transaction Risk Analysis (TRA), which is in the hands of the acquirer. The acquirer analyzes the risk of a transaction based on factors like customer behavior, transaction amount, and usual fraud rates at the merchant. By equipping themselves with a payment solution that utilizes TRA, e-commerce merchants ensure a smooth customer experience during the payment stage while limiting fraud risk.

A WIDE RANGE OF PAYMENT METHODS

Secondly: Offering a wide range of payment methods. Why? Simply to maximize conversion chances. According to a study published by YouGov in 2022, 69% of French consumers state they abandon their purchase if their preferred payment method is not offered. There's indeed a variety of payment methods. First, credit cards, which are still the preferred payment method for French consumers. Then, digital wallets like PayPal or Apple Pay, which are also favored in Europe and worldwide. They provide reassurance by avoiding the need to share banking details and offer a smooth purchasing experience. Finally, especially for higher-value carts, two solutions can be integrated into a payment page: simplified bank transfers, which allow surpassing card limits, provide payment security for the merchant, and a smooth experience for the customer, and installment payments, allowing customers to spread their purchase over several months.

INTEGRATE PAYMENT INNOVATIONS 

Lastly, stay updated on upcoming innovations such as Click to Pay, which will arrive soon and secure the transaction while reducing the number of clicks. No need to enter banking details, similar to a payment wallet. This innovation aims to compete with standards like PayPal and Apple Pay and ensure a 95% conversion rate for the merchant. Our unified platform, Market Pay, offers these three practices. We can certainly assist you in these matters.

And there you have it, Instant Paiement concludes.

Next month, I'll discuss unified commerce and how it impacts the shopping experience and merchant management.

Until then, feel free to share your thoughts on this episode in the comments, and for more information about Market Pay and our products, visit our website and follow us on social media.

See you soon!