This current purchasing behaviour demonstrates how important online shopping has become to retailers, both during the Christmas period and beyond. Increasing customer expectations, the evolution of technology and the legacy of the pandemic has seen shoppers wholeheartedly embrace e-commerce, driven by younger generations. Recent research found that 63% of Millennial and 52% of Gen Z consumers, globally, would stay online and never return to physical stores if they had to choose between the two.

But consumers’ online loyalty comes with conditions. Just over half of shoppers (51%) expect retailers to invest in technology that gives them more frictionless payments online. And no time is more important than at Christmas. As shoppers rush to fill their baskets from multiple retailers, online customer experiences are held in direct comparison and frustration with one can lead buyers to scurry to another.

One often overlooked area of the e-commerce experience is the checkout process. Clicking ‘checkout’ isn’t the done deal businesses think it is - there are many things that can go wrong and lead to a customer cancelling a transaction and giving up on their purchase. So what are the issues involved in processing payments and how can businesses sidestep them to avoid dampening Christmas cheer?

Why are payments so important?

E-commerce has created a new world of opportunity for retailers but it also poses some payment problems. Retailers need a way to securely and safely collect payment from their customers, whilst making the customer experience as smooth and easy as possible. With multiple tasks constantly threatening to tear attention away, one too many payment steps can lead to abandoned transactions. Customers also want to be confident in the security of your systems so their card details aren’t compromised and they aren’t exposed to fraud. If your payment interface looks like it belongs in the ‘90s, you risk losing consumer trust.

Your payments system can even affect your ability to target international markets. Having a global business strategy is one thing but if you can’t offer localised payments you’re severely limiting your growth. If customers can checkout in their own currency they’re reassured they know exactly what they’re paying and won’t be hit by a surprise figure or foreign transaction fee - increasing the chances of a completed purchase. Then there’s the bank’s approval. If a transaction appears in an international currency, the customer’s bank is more likely to flag it as suspect and decline the payment, causing shoppers stress and frustration. No wonder partnering with a payment solution that offers local currencies has been shown to increase sales by an average of 12%.

Making payments painless

One way to overcome this localisation hurdle is by turning to payment orchestration a.k.a technology that consolidates all the payment use cases, capabilities and geographies into a single platform. A payment orchestration solution facilitates local transactions, allowing retailers to offer prices in local currencies and increase authorization rates while avoiding cross-border fees through local card acquiring. This means customers aren’t thwarted by bounced payments or scared off by surprise prices and retailers can reach global audiences while driving down transaction costs. It’s a win-win situation.

This isn’t the only way payment orchestration can improve the customer journey. It allows retailers to add multiple payment options for customers - from PayPal to GoogleWallet - so customers can complete purchases in the way that best suits them. It’s a simple move but an effective one: adding an Apple Pay option can double conversions. Such software can also include features that support retailers with compliance and security, such as implementing 3-D Secure Strong Customer Authentication, increasing consumer trust in payments as well as protecting retailers from fraud themselves.

Better deals for businesses

Payment orchestration helps businesses drive up their profits and not just by reducing cross-border fees. It allows them to consolidate their payment options and therefore dramatically cut technical debt, as they’re not paying out for the services of multiple payment providers. This is a problem many businesses still face: almost 1 in 2 (49%) of global businesses use two to three payment solutions and almost a third (31%) use four or more. Reduce this number to one and merchants can make massive savings on the resources needed to maintain multiple gateways.

As the mulled wine flows and online orders grow, businesses need to check their checkout systems aren’t cheating them of profits. Payment orchestration offers a way to cut cart abandonment, boost customer satisfaction, curb technical debt and stand apart from competitors. What is a better Christmas gift than that?