Voice of the Industry

Securing the checkout process enables secure Christmas shopping!

Tuesday 8 December 2020 10:49 CET | Editor: Mirela Ciobanu | Voice of the industry

Giesecke+Devrient’s Jukka Yliuntinen shared with The Paypers some tips for online merchants to protect their customers, while keeping high conversion rates amid Christmas shopping

Every Christmas, mounting pressure to buy the perfect Holiday gifts for family and friends has led to a boost in digital payments as they offer the convenience and speed that people want more than ever at this busy time of year. As shoppers seek easier, faster experiences that offer great choice and personalisation, there is an urgent need for technological advancement. But what about the security?

Throughout 2020, due to COVID-19, ecommerce has been booming. And still is. The pandemic has driven retail online, to fulfil social distancing requirements, and 48% more US consumers used digital channels to shop during the first months of the crisis than before (BCG).

Digitally savvy online shoppers have easily moved from physical stores to online, and retailers especially the less-digital ones have had to quickly shift to online in order to meet their customers, with an enormous pressure to seamlessly manage masses of customer demands in a fairly new channel. Every segment within online shopping has seen an all-time-high. And this trend will of course also affect this year’s Christmas shopping. For instance, in Asia Pacific 1/5 of consumers are going online for the first time (BCG).

Ecommerce sites have undergone an unprecedented global traffic increase, surpassing even Holiday season peaks. Overall, they have generated almost 22 billion visits (June 2020), up from 16.07 billion global visits (January 2020) (Statista). And Forrester researchers predict ecommerce will grow 18.5% this year, reaching 20.2% overall penetration in North America. 

This Christmas, we will see a strong demographic shift in online shoppers, with the Boomers turning to ecommerce for the Holidays. A survey conducted by Dynata found nearly two-thirds of the adult surveyed planned to do all their Holiday shopping online (Redpoint Global).

In this new demanding environment, not only the online merchants need to adapt rapidly to cater the customers. Getting payment offerings right is crucial, in order to offer a safe and secure online shopping experience. As a solution to secure the customer, and still getting the conversions at the checkout, Card-on-File (CoF) network tokenization is something payment solutions experts at Giesecke+Devrient (G+D), promote.

In major geographies, overall consumer payments revenue is largely driven by spending-dependent streams, especially cards. These streams account for between 66 % and 86 % share, with the rest driven by liquidity and account-based revenue. Some spending is expected to move to ecommerce where possible, initial data suggests. Securing these transactions not only delivers increased revenue. It will also eliminate risk and serve your customers with a happy shopping experience.

The survey made by Redpoint uncovers that 70% of people said they would exclusively do their Holiday shopping with brands that personally understand them. In this, payments offering and security needs to be taken into account. The rise of tokenized digital payments is also something our payment solutions experts see when looking at own statistics: G+D numbers not only confirm this trend, but also are proofing an even higher impact based on the increase of customers going digital, as this is hitting all-time-high records!

To gain success in this increasingly complex arena, online merchants need to work with the right partners. G+D offers end-to-end solutions for ecommerce and digital payments, enabling security also with CoF network tokenization and a state-of-the-art customer experience for increased conversion rates. With our Convego®CloudPay eCOM solution, merchants don’t have to store sensitive customer data, avoiding the need for costly risk management tools, and removing the risk of data security breaches and cyber threats while same time providing excellent user-experience.

In ecommerce, conversion rates have a direct correlation to a business success. The right solution eliminates the risks of security breaches, and the customers feel confident in how their payments are in use, with a strengthened customer relationship. A win-win for everyone!

Thanks to optimised Card Lifecycle Management, where the network token is decoupled from the funding card for automatic renewals, there is no need for the customer nor the merchant to update any card data if as/when cards expire as this is done automatically. Network tokenization offers significant benefits over proprietary solutions.

  1. Higher security as the tokenization goes through a Token Service Provider and each transaction has a cryptogram;
  2. Network Tokenization covers a variety of use cases such as CoF, in-car payments, in-app, and mobile ecommerce payments ;
  3. Convego®CloudPay eCOM offers multiple payment brands and network tokenization with a single integration – scalability and convenience!
  4. Automatic token refresh at card renewal, no interruption to recurring payments and no discontinuation of service.

Combine network tokenization with embedded Strong Customer Authentication (SCA), the customer experience will be even more satisfying at the checkout. If SCA is already done when the consumer is logging in to the merchant’s app, the issuer can rely on that authentication and won't ask for another one for processing the transaction, fastening up the payment process making it seamless. We call this delegated authentication.

At the end of the day, securing the customer is to securing consumer spend this Holiday season.

About Jukka Yliuntinen

Jukka Yliuntinen, Head of Digital Solutions at Giesecke + Devrient, is well versed in identifying and delivering high performing, innovative, and business generating payment solutions for the industry, leveraging on his over 20 years’ experience in payment and identity technologies.

Jukka is also driving industry initiatives within the Mobey Forum, where he is co-chairing their ID mgmt. working group. And as an expert in his field, he is continuously contributing to papers as well as giving keynotes on numerous conferences world-wide on digital payment and identification topics.


About Giesecke+Devrient (G+D)

Giesecke+Devrient (G+D) technology is unconsciously used by billions of people every day! With more than 700 global Banks putting their trust in G+D and our offerings, we enable secure and convenient transactions for everyday usage. Founded in 1852 in Leipzig as a printer of bank notes, now with HQ in Munich, G+D is a global powerhouse in payments - be via cash, card, or digital services.

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Keywords: Giesecke+Devrient, G+D, tokenisation, ecommerce, holiday shopping, Christmas, online payments, security, conversion, Jukka Yliuntinen, Convego CloudPay eCOM, merchants, transactions
Categories: Payments & Commerce
Countries: Europe
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Payments & Commerce

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