Failed card-not-present transactions should never be considered business as usual. When a transaction fails, customer satisfaction, trust, and revenue plummet. If there‘s one thing that most customers want to avoid, it’s friction during the checkout process.
Merchants must not only ensure that customers experience a seamless checkout process but also need to navigate issuer preferences, network changes, growing payment options, and multiple routing options. Keeping up with these various challenges—which are becoming more frequent and costly—can be a struggle for many merchants. To address this growing concern, Worldpay unveiled a turnkey solution called Revenue Boost, which helps merchants optimize payments approvals while keeping costs down.
Taking a Proactive Approach
Most customer churn can be traced to a faulty payment process. Instead of accepting this event as the cost of doing business, merchants should consider a more proactive approach—a payment strategy that can secure a higher number of conversions, especially for first-time customers. Merchants have several opportunities throughout the customer shopping journey to make a lasting impact that customers will remember, and one of these critical moments happens during the checkout process. Once customers make the initial decision to buy, merchants need to ensure the payments process goes off without a hitch. A frictionless experience can increase the likelihood that consumers will return.
“Increasing the lifetime value of the customer that you have can be done within an effective approach to payments to ensure that those who are coming through the funnel have the best possible chance to convert,” Jason Harding, Product Director of Optimization at Worldpay, said during a recent PaymentsJournal podcast.
In a robust payments scheme, merchants need to have access to the right data that would best benefit their organization. According to Harding, using network payment tokens can help merchants make sure they have the most up-to-date information on a customer. Network payment tokens can also reduce friction at checkout without compromising security. Account updaters are also useful, as they automatically update subscription customer card information.
A New Turnkey Solution
Worldpay is looking to help merchants process more card-not-present transactions by reducing the cost and risk of taking payments. Its Revenue Boost turnkey solution is powered by machine learning to maximize its performance.
A single strategy doesn’t work for everyone—particularly because merchants may have different goals, needs, and approaches to driving up e-commerce sales.
Personalized and tailored experiences are what many merchants have been leaning into lately, and Worldpay is as well. The company believes that its solution’s new features can help merchants tailor the payments experience to their needs and, in turn, help them create new opportunities to drive growth.
During a Revenue Boost pilot that Worldpay conducted between May 2022 and April 2023, based on a minimum of 500,000 transactions, one customer reported seeing a $6 million approval lift during a six-month period. Another customer saw a 4% acceptance increase during Black Friday.
And as Harding pointed out, the use of network payment tokens can be effective for merchants. Indeed, one merchant who participated in the pilot said it saved $1.2 million in payment costs over 12 months.
“By lowering costs and lifting approval rates, we can unlock the true value of payments for our customers,” said Gabriel de Montessus, Head of Global Enterprise at Worldpay. “We’ve already seen success for some of the world’s biggest brands, and we look forward to working with more to fuel their commerce globally.”