E-Payment: solutions for online and offline shops

Almost 15 percent of online shoppers cancel their purchases during the checkout step, in which they have to select a suitable payment method among other things. This is understandable in light of the fact that customer requirements and shop offerings often differ widely. As a recent study conducted by ECC in Cologne has shown, 78% of German consumers would prefer to pay by way of standard invoice. Electronic payment methods like PayPal and direct debit come in second and third, whereas advance payment and cash on delivery are far less popular. The importance of customer preferences is directly reflected by shop turnover. For 75% of retailers, the introduction of PayPal has resulted in an increase in sales of approx. 23%.

PayPal revolutionized the online payment market several years ago and quickly positioned itself alongside traditional payment models including prepayment, invoicing and cash on delivery. PayPal and other similar services like ClickandBuy or Amazon Payments earn money from shop operators who want to provide their customers a simple online purchase process. Between 1.9 and 2.9 percent of the transaction amount plus 30 to 35 cents per transaction are paid to the payment provider.

The future of E-payment will follow the development of retail sales in it’s omni-channel approach. Customers want to use various information and sales channels simultaneously. For example, they obtain initial information on products on the internet, then use E-Commerce and M-Commerce offerings to compare prices, and finally test the actual products in physical stores. This development melts together E-Commerce and traditional commerce, forcing both to change. As in international trade, the new payment possibilities have to be adequately developed and processed. This can be achieved, for example, by having payments entered, carried out and monitored at the point of sale and in the online shop using the same payment software. Some payment institutions, banks, and PSPs are taking this into account by connecting payment methods such as credit or debit cards, direct debit, payment in advance, bank transfer, wallet-transfer and payment apps so that the same payment methods are available to consumers on all channels.

This is seen in PayPal’s recent attempt to conquer over-the-counter retail in Germany. A pilot project is currently under way, which uses BLE (Bluetooth low energy) and Apple’s “iBeacons” (small wireless sensors) technology distributed throughout retail stores. Retailers can use this to accompany their customers throughout their entire customer journey in the store. For example, they can draw attention to special offers even before customers enter the store, guide them through the store by way of indoor navigation and indicate discounts and sales at the right points. As customers approach the checkout, a mobile payment option is offered, which you can use to pay for your purchases. Waiting times at the checkout are entirely done away with.

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