Improving the checkout journey for your customers is very important in creating outstanding shopping experiences. Last Black Friday, our data revealed an increase in transactions by 35% compared to the year before, while online shopping on Black Friday alone grew 97% compared to earlier in the month.1 As discussed in Black Friday Session #2 - when traffic increases, so do fraud attempts. At the same time, customers increasingly prioritize fast checkout experiences. The number of people demanding a seamless checkout, even if their transactions' security might be lower, has increased 110% in the past 12 months.2
Long story short: Both the theft of sensitive data and long checkout processes can have a very negative impact on your customers' purchase intent. Let's discuss how tokenization can combine a fast and convenient checkout experience while protecting your customers' data and give you an edge over your competitors during Black Friday 2021.
Tokenization - Fast and secure checkouts
Tokenization is one of the most popular payment trends of the last few years. It describes the process of turning sensitive data into non-sensitive data. The non-sensitive data takes the form of a token which can then be used to complete payments in your integration.
For example, your customer’s credit card information is entered on your website to complete a purchase. This information is then encrypted and stored securely by MultiSafepay. MultiSafepay returns a randomized token to you as a reference for this customer’s payment details. As the token is completely random, it has no relationship with the original payment details. It is impossible to derive the original payment details from the token in any way. Going forward, you can use this token to process payments through MultiSafepay instead of submitting the customer’s sensitive payment details every time. Therefore you can breathe easy, knowing that your customers’ details are safe.
There are different applications for which Tokenization can be used:
- One-click shopping: You have a good number of regular customers in your store to whom you want to give the best service and optimize their shopping experience. Tokenization will allow you to store their sensitive information for easier future purchases without putting it at risk.
- Recurring payments and subscriptions: Make use of tokenization if you provide a service that people can subscribe to or need to pay for periodically. Tokenization will allow you to safely store your users' billing data and make periodic payments secure.
- Adhoc payments: You provide a service that automatically tops up your customers’ credit balance when it drops below a certain threshold.
Checkouts - the shorter, the better
While advanced security measures are becoming inevitable, in this day and age, people are constantly looking for the quickest and most convenient way to complete tasks - and we see this trend applying to online shopping purchases and payments as well. Research has shown that the main reasons for customers not to complete a purchase are related to the checkout pages and processes: 24% don’t want to create an account, while 18% perceive the checkout as too long and complex.3
The simple psychology behind the modern customer's shopping behavior is: The easier they perceive the purchase and checkout, the sooner they perceive their order to arrive. Especially younger audiences who have been highly immersed in continuous technological development have no tolerance for slow shopping processes - and there are many competitors out there that can outperform you. If the checkout is too complicated or takes too long, they might shop somewhere else. Therefore, the main takeaway here is, the fewer taps and clicks required to complete a purchase, the better.
The use of tokenization in checkout processes resulted in valuable innovations such as Magento Instant Purchase and Magento Vault - which is, in essence, tokenization for Magento 2. With Magento Vault, tokens will be saved in the Magento database, allowing the seamless use of the tokens by other integrations within your Magento platform, such as Magento Instant Purchase. This feature in turn, provides your customers with a one-click instant purchase button, helping you offer customers a quick and easy checkout experience.
Benefits of tokenization for ecommerce
Improving your customers' shopping experience will soon be reflected in the conversion of your business, not only during Black Friday but also in the future. Tokenization technology will help you provide a seamless experience for all your customers.
- Boost conversion and transaction speed. By securely storing payment details, your consumer will be able to use their token to pay with just one click.
- Build a loyal customer base. The transparency of transactions enabled by this technology, with no security loopholes, will keep your existing customers coming back to you on multiple occasions and enhance your reputation and attract new customers with their reviews.
- Reduce your risks of a data breach. Using tokenization lowers the risks of a data breach and makes a potential incident less damaging.
- Lower shopping cart abandonment rate. Approximately 18% of users who abandon their cart at the time of payment, do so because the checkout process was too long or complicated.4 Tokenization allows them to pay with stored cards or to introduce a new card for future usage.
Tokenization is mainly used for credit card, recurring, and subscription payments, but can also be used with other bank payment methods available with MultiSafepay. MultiSafepay merchants can activate tokenization via API or plugins.
Are you ready for Black Friday 2021?
Keeping our mission to help you build the perfect checkout for Black Friday in mind, let MultiSafepay help you adapt to your customers’ demands and stay ahead of the market. Several of our tools, such as tokenization, allow you to reduce the cart abandonment rate for your shops, recover key profits and eventually make the most of this years’ shopping season.
How quickly can we set-up tokenization for you?
1 https://www.multisafepay.com/blog/black-friday-2020-results
2 https://www.paysafe.com/fileadmin/user_upload/Lost_in_Transaction_Consumer_Payment_trends_2021.pdf
3 https://baymard.com/lists/cart-abandonment-rate
4 https://baymard.com/lists/cart-abandonment-rate
