Stephan Heckmaier, PAY.ON: "Dynamic Checkout provides a variety of measures to rescue the purchase before the shopper clicks away"

Tuesday 3 June 2014 13:34 CET | Editor: Melisande Mual | Interview

Shoppers will not complete their purchase if they get insecure in any way during the payment process

Stephan Heckmaier, Senior Business Development Manager at PAY.ON, has worked in the payment industry for 15 years. His career began at a major German bank and a provider for interbanking payment transactions systems. He joined PAY.ON five years ago as Senior Project Manager working with worldwide leading payment service providers. In his present role Stephan is responsible at PAY.ON for the project management and business development of Dynamic Checkout. Furthermore he is working on global business development projects.

You recently launched the new payment product “Dynamic Checkout,” which offers ease of integration for payment service providers and online merchants. Due to its innovation, the product won the Florin award at the EPCA conference in March. Can you briefly describe what market challenges it solves?

Stephan Heckmaier: Our Dynamic Checkout Solution combines different intelligent payment solutions, which together perfectly meet today’s market requirements: it boosts the merchant’s conversion rate by eliminating the risk of shoppers abandoning the purchase. At the same time – and this is the uniqueness of the solution – it reduces the risk for merchants of not receiving payments to zero through an Active Payment Method Selection.

One of the big advantages is the ease of integration: the integration happens within minutes. Just recently we proved the simplicity of the solution at the TNG Bigtechday 7, where we organized a live programming contest. The winner of this session finished the integration with successful payment processing under 15 minutes.

With Dynamic Checkout, we have considered the tiniest details to help grow our customers’ businesses, like developing a simple and straightforward code for a quick start, delivering all checkout requirements, eliminating integration complexity, and offering a fraud management system without exorbitant implementation processes.

Can you please elaborate on the benefits Dynamic Checkout offers global payment service providers and merchants with regard to business and technology?

Stephan Heckmaier: Payment service providers and their online merchants are faced with a drop of 15–20% in conversion if they do not offer local methods of payment. Even if the fraud rate for a payment method is high, such as with open invoice or cash on delivery, merchants need to offer it to generate an uplift in conversion.

COPYandPAY, as part of Dynamic Checkout, offers more than 150 traditional and alternative payment methods and widgets in 25 languages, guaranteeing the perfect payment setup for each country. Active Payment Method Selection, as the other part of Dynamic Checkout, now ensures that out of this payment setup, only risk-adequate payment methods are dynamically shown to predefined customer groups. With this solution, merchants can offer every payment method – the setup only differs in regard to each shopper’s risk profile.

You mentioned that Dynamic Checkout is a solution to boost the merchant’s conversion rate. How is that so? And how are costs affected?

Stephan Heckmaier: Shoppers will not complete their purchase if they get insecure in any way during the payment process; meaning they might drop out once they are redirected to enter their payment details on another page, they see the payment form looks different, the page doesn’t deliver price and payment details in their language and currency, or, and this is the biggest showstopper, if their preferred payment method is missing. Dynamic Checkout provides a variety of measures to rescue the purchase before the shopper clicks away; like a widget library that makes it easy to build payment forms in any design, language, currency, and payment method. And with Active Payment Method Selection, the merchant minimizes bad debts and keeps fraudulent shoppers at bay. As a result, they can maximize the conversion rate and ultimately boost their revenue.

A big topic today is multichannel or omnichannel processing. Is Dynamic Checkout available on all channels and does the product offering differ from channel to channel?

Stephan Heckmaier: Today, consumers move seamlessly between their connected devices multiple times every hour, for communication and shopping purposes. With Dynamic Checkout, we deliver what our clients and their consumers want: a responsive payment page solution that adapts itself instantly to different devices. Once integrated, you’re cross-device and always up-to-date, with no extra code or integration required. Furthermore, it enhances conversion rates for new and returning shoppers through all channels.

Part of Dynamic Checkout is the Active Payment Method Selection. How does this work on a global level and across verticals? Does it promote the management of fraudulent transactions or rather promote a seamless shopping experience for the online purchaser?

Stephan Heckmaier: While COPYandPAY is developed to reduce shopping cart abandonment, the Active Payment Method Selection is designed to prevent fraudulent purchases by providing information on the basis of shopper IP address, digital fingerprint, shipping or billing address, and according to information in the shopping cart. Based on this, it then dynamically displays the appropriate payment methods at the checkout. As a result, merchants are guaranteed to receive their payments, while still being able to offer more risky payment methods to trustworthy shoppers. On the other hand only less risky methods of payments are offered for shoppers with a higher risk profile. Therefore Dynamic Checkout promotes a seamless shopping experience and ultimately, merchants keep bad debts and chargebacks away. It supports unrestricted local and global processing and has no restrictions concerning vertical sectors.

What are the benefits of Dynamic Checkout compared to alternative products available on the market?

Stephan Heckmaier: Most of the other solutions offer payment forms and risk protection separately; Dynamic Checkout offers everything at once.

Furthermore, PAY.ON’s Dynamic Checkout functions not only with credit and debit cards, but also with asynchronous work flows such as 3D Secure, PayPal, and Sofortüberweisung. Our customers have complete freedom in selecting the right payment method for their setup, regardless of a method’s associated fraud rate. Due to intelligent risk management, our solution is applicable for all kinds of shoppers, both new and returning ones. PSPs and their merchants actively decide which payment method to offer to shoppers by defining different groups in the backend, and aren’t confined to the preregistration of a shopper. As I mentioned above, with Dynamic Checkout we have considered the tiniest details meaning a quick and simple start to offering safe and secure payments. We have set a benchmark in enriching shoppers’ and merchants’ checkout experiences thus driving conversion rates to the maximum.


Founded in 2004, PAY.ON offers global outsourcing services and routing for monetary transactions, wallet solutions, risk management and monitoring services, as well as various technical solutions.

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Keywords: PAY.ON, ecommerce, online shopping, Dynamic Checkout
Countries: World