The Indian payments industry has come a long way from the days when people were apprehensive of paying digitally to today when they are confident enough to save their card details online.
Online payments in India have caught up like wildfire. It is not only limited to just the metro cities, but even users from lower-tier cities prefer to pay for goods digitally.
According to a study conducted by YouGov and ACI Worldwide, 60 percent of Indian shoppers used digital payment tools for their purchases.
Even with such a high adoption rate of online payments, e-commerce companies face the issue of cart abandonment. Imagine the growth India will see in digital payment adoption if online businesses could convert these potential customers into paying customers at the checkout page.
Why do customers abandon their carts?
While there are various reasons for customers to dump their e-cart mid-way, most of these reasons fall into two buckets: tedious payment process and hidden charges.
For the purpose of this article, we will concentrate on the reasons that can be clubbed under the tedious payment process. Let’s list out a few of these reasons here:
- Concerns of payment security
- Complex checkout process
- Multiple redirections
- Lack of payment options
- Tedious refund process
Having to go through the lengthy checkout flow is one of the most common reasons for shoppers to chuck their cart without making the payment.
Once the customer fills their cart they don’t want to hang around spending their precious time filling detailed forms. For better conversion, online businesses must tweak their checkout flow such that users can quickly pay and leave their website.
One way to do this is to partner with a payment gateway that can reduce users’ time on the checkout page. The checkout flow of Paytm Payment Gateway is fairly simple and easy to use.
Paytm Payment Gateway enables buyers to securely save their card details on the e-commerce where they very often shop. This way, they don’t have to type in card details every time they buy something.
Our feature that lets consumers save their payment instruments such as credit and debit card details is not only 100 percent secure, it saves users’ valuable time.
Why saving card details with Paytm Payment Gateway is safe
While innovation is important, it should not come at the cost of safety and security of users.
Along with the rise of digital payments, the risk of users’ payment details getting into the wrong hands has also become an issue.
Keeping this in mind, the Reserve Bank of India (RBI) has taken strict measures to ensure netizens’ card details are not compromised when they save them with a payment intermediary.
To process online payments, payment gateways in India have to comply with various security requirements of India’s financial regulators. For security purposes, all the card details should be end-to-end encrypted when a user pays online. In plain language, it means all the card-related information that users type for online payment is coded so that no one can see it.
Now, when consumers save their card information on the checkout page, there might be a risk of these details getting leaked. Recently, RBI mandated that payment gateways and banks will have to put in place a piece of technology called tokenisation if they want to store customers’ card details.
How tokenisation works
Whenever a customer saves their card number on an e-commerce website, tokenisation encrypts those numbers with a set of unique characters. Even cardholders can see only the last four digits of their card just so they can choose which card they want to use, in case they have saved multiple cards.
Since no one can see the numbers, it’s totally secure against any kind of cyber fraud.
A comparison: saved instruments vs manually punching details
|One-click payment and checkout with OTP
|Users have to type in their card information every time they want to buy something online
|Totally secure as no one can see the card numbers
|While punching the card details, the numbers are visible to the onlookers if users are shopping online from a public place
|It’s error-free as the card details are already verified when users saved it the first time
|There’s a chance of typing the wrong number, requiring them to fill in the details once again. This lengthens the payment process
|If for some reason, the network of a specific saved card is not working properly, users get notified to use a different card
|Since the card details are not saved, payment gateways can’t inform users in advance of network congestions prior to putting in details
Decrease cart abandonment with Paytm Payment Gateway
Paytm Payment Gateway’s checkout flow removes all kinds of friction customers face while paying online.
It gives users the option of paying via different payment methods including EMI-based payments and BNPL facilities like Paytm Postpaid. In addition, with Paytm Saved Instruments users can save their card details without worrying about security and shop in the quickest way possible.
Paytm Payment Gateway can save different payment instruments giving online shoppers an ample number of choices.
- Save card details: Online buyers use different cards such as debit or credit cards depending on the kind of shopping they are doing. For high ticket purchases or subscriptions, they would want to use credit cards. Paytm Payment Gateway allows users to save all kinds of cards so that they can choose which card to pay from at the checkout
- Save UPI handles: Due to the ease of UPI payments, customers have increasingly started to pay via UPI. To further reduce the payment time, we allow users to save their UPI accounts with Paytm Payment Gateway
- Paytm Wallet: Paying via Paytm Wallet is one of the most convenient methods to shop online. With just one click, users can pay and get done with their purchase. Even if the balance is low in the wallet, with just one click they can fill their wallet from the linked bank account and pay for their purchase without having to go back to the checkout page
Online buyers are looking for just one thing – convenience. Optimising the checkout flow for users so that it’s convenient for customers to pay online will surprisingly elevate sales.
If you are unsure how to go about it, leave it to Paytm Payment Gateway as we have solutions for all the payment-related needs. Sign up now and see your sales elevate like never before.