The secret behind creating a frictionless payment
The security code and expiry date on your credit or debit card are already difficult to remember. A new kind of payment called frictionless payment makes it simple to use your phone as payment. No information is required to be typed in while using frictionless payment.
What Is A Frictionless Payment?
The purchase process is greatly streamlined by frictionless payments, which enhances the client experience. Additionally, it makes it simpler for retailers to close sales, which lowers cart abandonment, boosts conversion rates, and eventually raises revenue.
A payment must meet several requirements to be deemed frictionless:
- It offers a quick checkout, reducing the amount of steps required to complete it.
- It demonstrates cognitive comfort by often eliminating stages from the purchase process.
- It’s incorporated into a positive customer experience, such employing a progress indicator to provide clarity to a payment process.
The advantages of Frictionless Payments
More secure payments
Digital payments have the potential to be safer than cash or credit card transactions. Merchants substitute sensitive data with a non-sensitive version, known as a token, using a tokenization system.
Recurring subscriptions are one of the tokenization’s most popular applications. Here, companies save client billing data for their subsequent automated payments without the risks of doing so themselves (for example, for a Netflix subscription).
Amazon invented one-click checkouts, which is another common use of tokenization. They increase the likelihood that consumers will complete the checkout process since there are fewer barriers to doing so.
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An improved user experience
A frictionless payment process makes purchasing more convenient. The checkout procedure is made quicker. You won’t need to sign anything or keep track of a PIN number, nor do you need to pay with cash and wait for your change. As an alternative, you may quickly make a payment using something as basic as a fingerprint.
A reduction in cart abandonment
As we just discussed, one benefit of frictionless payments is that they make checkout simpler, reducing cart abandonment. How likely someone is to finish a purchase depends on the intricacy and length of their shopping cart.
According to the Baymard Institute, over 20% of customers leave their carts because the checkout procedure is either too drawn-out or too difficult.
Some examples of Frictionless Payments
Mobile Apps
Use a store’s mobile app to place online orders and make in-person payments. For instance, some companies let you place an order and pay for it using the app while you are at the shop. Your card information is already kept in the app, so you may use it to make a fast payment online.
Smartphone Wallets
It used to be impossible to leave your house without your wallet and still go food shopping. Now, all you need is your smartphone to swiftly and simply make a payment thanks to mobile wallets.
The finest illustration of seamless payments is likely mobile wallets. Consumers can rapidly pay with their phones using Apple Pay, Google Pay, and Samsung Pay thanks to technology that uses NFC to process payments. Because they can handle payments more quickly, reduce processing costs, and limit fraud, these digital wallets are beneficial for shops.
As more consumers switch to online and mobile shopping, frictionless payment is becoming a more crucial component of the customer experience. To find out more about how SmartOSC can improve your checkout process and boost your sales, get in touch with us right now.
