Digital Payments Upgrade For Online Shopping
Cart abandonment will drop, and there will be higher conversion rates, and there will be a drop in fraud. That is the take away regarding this breakthrough in technology. For those who are focused on how better payments can lead to better eCommerce, the upcoming months promise to be an exciting and revealing time. That’s
Cart abandonment will drop, and there will be higher conversion rates, and there will be a drop in fraud. That is the take away regarding this breakthrough in technology.
For those who are focused on how better payments can lead to better eCommerce, the upcoming months promise to be an exciting and revealing time. That’s because the newest EMVCo payment specification is freshly out in the world, and the feedback and metrics on its success and failures will soon start emerging.
The long-anticipated EMV Secure Remote Commerce (SRC) Specification version 1.0 is out. Its strength is measured in the short and immediate term, and the new spec could encourage more eCommerce.
The specification is available for free public download from the EMVCo website. According to the secure payments enabling group, the specification “provides a foundation that will enable … the processing of eCommerce transactions in a consistent, streamlined fashion across a variety of [digital channels] … and devices, including smartphones, tablets, PCs, and other connected devices.”
Another way to put it is that the new EMV specification promises to enable many more seamless retail transactions. As Armstrong told PYMNTS, the spec will gradually replace the “complex registration journey” that many online shoppers have to undergo before making purchases, a journey that includes passwords and other data entered into multiple fields. Visa has said the average online transaction involves 23 information fields.
“In eCommerce, the checkout process is fraught with the chance of the user ultimately not completing the transaction,” Armstrong said. The new spec promises to change that, according to his estimate. “In 80 percent of the cases, a transaction will get an instant to approve/decline decision by leveraging a Risk-Based Assessment engine.”
Not only that, but the new spec from EMVCo is designed to reduce card-not-present fraud, a prime target for online criminals. Indeed, as he told it, many merchants would instead take a hit on fraud than risk losing sales and customers to the frustration of all those information fields, which can lead to online shopping cart abandonment.
Since the age of the smartphone has come about, people have been moving away from a browser-based world.
Indeed, he said, the new spec helps point the way toward a future without passwords in favor of biometric authentication methods and tokenized payments. That said, a good deal of work remains when it comes to full deployment and use of the EMV Secure Remote Commerce (SRC) specification version 1.0. “There are multiple parties that will need to play a role in upgrading from the old version of the spec.
That’s what the future holds if the new spec lives up to the promise. Online and mobile shopping keeps on growing, but few things can fuel that growth as well as seamless and secure payments.