Cart abandonment rate by online shoppers is high, and one of the reasons is having an overly complicated payment system. Magento Payments has been introduced with the goal of increasing conversion rates by getting rid of the barriers which complicate the completion of online sales.
The company says Magento Payments is easy to set up and configure. According to Magento, this will allow you to start taking payments in a matter of hours because it has reduced the operational complexity while improving the customers’ experience.
Ultimately, merchants can focus on their business instead of worrying about their payment systems. For small business owners, it means more conversions by being able to accept a wide variety of payment methods no matter where their customers are.
In the blog announcing the new service, Magento said, “Magento Payments leverages the industry-leading technology of Braintree and PayPal to enable merchants to accept a wide variety of payment methods, including local and region-specific, to help increase conversions and remove the barriers to completing an online sale.”
The High Rate of Cart Abandonment
According to Brilliance, the average cart abandonment rate for 2017 was 78.65%. This translates to almost 8 in 10 shoppers leaving their carts without completing a purchase.
When it comes to devices, mobile has the highest abandonment rate at 85.65%, followed by tablets at 80.74%, and desktops at 73.07%.
The customers might come back at a later date or you might never see them again because they have gone to another retailer with a better checkout system.
Whatever the case, Brilliance says there is a huge opportunity to recover these abandon carts and dramatically increase your revenue.
Magento says global e-commerce sales will go up from the $2.3 trillion of 2017 to around $4.9 trillion by 2021. The doubling of sales in just three years means there will be more opportunities for online retailers.
Because payment systems now include merchant banks, payment gateways, issuing banks, payment processors, and fraud management tools, the process can get complicated. For those who optimize their site with easy to use EPOS or Electronic Point of Sale digital systems, it will translate to fewer abandoned carts.
The payments and risk management process have been streamlined so business owners can manage their payment system from the Magento Admin panel. The company says there are no third-party accounts to manage, no need for local or regional payments expertise, and no subscription costs.
The new service also improves cash flow management by automatically synchronizing payments and order information in the Magento Admin. Business will have a more transparent view of processed volumes, payment balance, and detailed transaction reports.
Having everything under one umbrella with an automated system eliminates the mistakes which come about because of manual data mapping between systems.
All of these features are integrated with a robust security protocol which Magento backs with an industry-leading Fraud Guarantee. The company says this guarantee shifts liability away from the merchant by handling fraudulent chargebacks and dispute management while providing full transparency and financial reporting.
Magento Payments will be available in the first quarter of 2019.
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