Table of Contents
Introduction
In India, card payment accounted for close to 30% of all digital payments, and credit card usage is expected to exceed 10% growth YoY, also due to innovations with UPI on creditCredit cards. While UPI has rapidly gained traction, cards still offer great value to consumers, especially in high ticket transactions.
To our detriment, card payments come with friction points, contributing to cart abandonment, and loss of potential revenue. Today’s consumers are accustomed to a smooth digital experience (thanks to e-commerce giants), and they have absolutely no tolerance for even the slightest slowdown or hassle during checkout.
At Cashfree Payments, we have leveraged our proprietary stack of cards products to minimise any friction points, achieve higher success rates, provide a smoother experience, and an effortless customer experience. We will discuss 5 of the common frustrations customers face, and how Cashfree Payments solves that issue.
5 Problems Customers Face While Making Card Payments
Card payments deliver convenience but there are several technical challenges and UX problems that can make the checkout experience unbelievably frustrating. Some of these aspects are blind spots for merchants, but that’s why rates of conversion are lost. By recognising the major pain points, businesses can take tailored and targeted steps towards finding solutions that provide easier and faster transactions for returning customers.
The foremost sources of frustration tend to be repetition with data entry, concerns with security, technical faults and broken flows. Fixing these items doesn’t require a galvanising overhaul – usually a few calculated adjustments can greatly enhance the payment experience. Let’s take a closer look at five of the major issues, and identify how progressive payment solutions are addressing these problems.
- Re-entering Card Expiry & CVV each time
The Problem:
Most purchases get abandoned when customers are asked to re-enter card details like expiry date and CVV. This is worse for customers who are repeat purchasers as they feel they have to go through the pain of getting their card out all over again while they in fact might be attempting to buy something much more quickly than their last transaction. It just gets messy just to find a physical car, creating a huge friction for making payments. All of these issues lead to an unmanageable number of nasty drop-offs in the checkout process.
The Solution:
With Cashfree’s RBI-compliant tokenisation, customers can store their card details securely. When stored, the customers can checkout with no need for re-entering CVV’s or expiry dates, which will lessen human errors / mistakes and speed up the transaction time.
Making these use cases easier for customers not only increases convenience , it also builds back trust by not having to share the same sensitive information several times.
- Redirecting to Bank Page for OTP
The Problem:
A lot of payment gateway systems redirect the customer to the bank’s OTP page. This creates more steps and only increases the load time for the payment. The checkout experience is disrupted, and because the customer is redirected to a different application, there could be security concerns considering the customer would have no knowledge of the redirection.
The Solution:
Cashfree’s Native OTP flow keeps the entire payment process inside the customer’s foray, whether that be through your app or website. There are no redirections, and the OTP is auto-read – thus decreasing manual errors.
This ensures a more seamless, faster, and secure checkout process, while also ensuring the customer remains engaged in the payment process until it is complete.
- Lengthy Checkouts for Repeat Purchases
The Problem:
New customers might be okay with the checkout process involving multiple steps, but for repeat customers, they expect a swift checkout process. Going through the tedious checkout flow removes the momentum and increases frustration.
The Solution:
With Cashfree, Express Checkout allows a customer who has previously checked out with you, and has their preferred payment method already selected. All they need to do is click a button to process the payment, without any additional flow.
This minimises friction, and promotes faster repeat purchases.
- Struggling to Find Their Preferred Card
The Problem:
Customers with multiple saved cards frequently spend wasted time searching for their most-used or latest-used card. If they don’t have quick access to it, they may even choose to abandon the purchase altogether.
The Solution:
Cashfree’s Smart Card Recommendations show preferred cards at the top of the checkout page to minimise decision time.
By making card selection easier, merchants can reduce drop-offs and improve checkout experiences.
- Frequent Payment Failures
The Problem:
Failed transactions can be seriously annoying – whether it is your bank is down, there’s a problem with your network or there’s some incorrect routing. Customers can ultimately distrust the service and go to a competitor after a failure to pay.
The Solution:
Cashfree leverages dynamic routing technology across our multiple acquiring banks, intentionally routing payment to whichever terminal is performing best at that time, We have auto-retry logic that will account for these temporary failures. Furthermore, we also show which cards may be down at the moment so that your customers can skip an avoidable payment failure and choose a better card option.
This can maximise success rates, while providing a reliable and smooth payment experience.
How Cashfree Transforms Your Checkout
Cashfree Payments is changing card payments for the better by taking on the friction points that drive customers away and hurt conversions. It does so through tokenisation, which all but removes repeated card entry, and native OTP processing that keeps customers in your checkout flow rather than redirecting them to a bank and disrupting the flow. Meanwhile, intelligent routing & automatic retries improve approval rates behind the scenes, and express checkout eliminates friction for repeat purchases, all cutting checkout times by 15-30% and pushing approval rates to 98%. These can all reduce abandonment rates and create the kind of frictionless experience that builds loyalty
The great part? These enterprise-grade payment features and capabilities are available for businesses of any size, thanks to integrations that require little implementation effort. You can be on a Shopify installation, a WooCommerce install, a developer or custom-built integration, and immediately plug the module in with real-time analytics to continuously optimise performance. In the competitive landscape of today, where customers expect online checkout to be as simple as browsing online, Cashfree is the engine that can help turn your payment from a necessary step to a competitive advantage that drives measurable revenue.
FAQs
- What effect does tokenisation have on conversion rates?
According to research, tokenisation can cut checkout time by up to 70% and improve conversion rates by 15-30%, particularly for mobile transactions that involve cumbersome typing.
- Is there a security risk in native OTP handling?
If implemented properly using encrypted fields and secure elements, native OTP can be as secure as a bank redirect but offer a far more streamlined user experience.
- What logic do smart default cards use to determine options?
Algorithms consider factors such as the card that was most frequently used, last used card, spend amount and other factors that affect the success rate.
