How to Make Mobile Payments Work

Simplify the process and offer flexible payment options, argues e-commerce executive.

December 10, 2013

NEW YORK – While holiday shopping on mobile devices continues to rise, two out of three digital consumers abandon their mobile shopping carts, Venture Beat reports.

The data comes courtesy of a Harris Interactive survey, with other surveys reporting abandonment rates exceeding 90%.

While some attribute the attrition to mobile sites that aren’t optimized for smaller form factors like tablets or smartphones, “many merchants and analysts miss, however … the role of the mobile payment system itself,” said Ralph Dangelmaier, CEO of e-commerce firm BlueSnap.

Dangelmaier said most mobile payment systems are clunky and lack flexible payment models, or have limited abilities to accept coupons. He said that while consumers shift to smartphones and tablets as the computing device of choice, “merchants are bound to lose billions in mobile shopping dollars until these gaps can be closed.”

To do so, Dangelmaier offers these tips:

  • E-Z checkout: While one-click purchasing is standard procedure for purchases made on desktops or laptops, it’s the exception in m-commerce. This is a big turnoff to consumers, where re-entering payment information can be cumbersome.
  • E-Z subscription management: Mobile payment systems should offer multiple plan types – pay-per-use, trial with subscription, etc. — along with flexible payment cycles (weekly, monthly, etc.) to encourage m-shopping. They should also support multiple payment options, including wire and bank transfers, purchase orders and e-checks.
  • Promotional tools: Mobile sites must be proactive to generate sales, increase order size, and/or reduce customer churn. To do so requires offering coupons, upsells, cross-sells, free trials, and other traditional shopping incentives. These prevent consumers from exiting their mobile carts before hitting the checkout button.

“At the end of the day, it’s all about the buying experience,” Dangelmaier said. “Mobile stores need to adapt to mobile platforms as well as offer fast, full-featured, marketing-savvy shopping carts. When that happens, fewer carts will be left holding the (shopping) bag – and the m-commerce juggernaut will gain even more speed than the pundits are predicting today.”

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