Tokenization: how to improve acceptance and create new buying paths?
Tokenization mechanisms bring another dimension to online payment security. By transforming card data into secure tokens, it reduces the risk of fraud and simplifies transactions. This technology not only improves the security, but it also increases the acceptance rate of payments and makes it easier to create buying journey more fluid and innovative. Learn how tokenization can optimize the online shopping experience and strengthen consumer trust !
What is tokenization?
La Tokenization is a process by which sensitive payment information, such as bank card details are replaced by a unique and secure token. This token, also called a “token,” can be used to process payments without ever revealing original information. Tokens are unusable by themselves outside of the secure context for which they were created, which greatly reduces the risk of embezzlement.
Improving the payment acceptance rate
Reduce failed transactions
Tokenization can significantly improve the acceptance rate online payments. By replacing sensitive data with tokens, following an initial payment accepted, it allows customers to make payments in one click during their next purchases. This simplification of the checkout process reduces the risk of friction and cart abandonment, and thus increases customer conversion. By providing a smooth and fast checkout experience, tokenization removes potential obstacles that could discourage customers from completing purchases.
Read also: How to integrate new providers or payment methods without burdening your IT roadmap?
Facilitate bank account updates
Another advantage of tokenization are “network tokens”. These tokens are issued by card networks (such as Visa or Mastercard) and allow for automatic updates to credit card information. When a customer's card information expires and is renewed, or a new card is issued as a result of theft or loss, card information (PAN) can be updated automatically without interruption of service. This reduces the risk of rejections on recurring payments and maintains a high acceptance rate. For businesses that rely on subscriptions or recurring payments, this means uninterrupted revenue continuity and a reduction in churn rate related to payment issues.
Optimizing the user experience
Tokenization also simplifies the payment process for customers. By keeping the secure tokens in their user account, customers do not need to enter their payment details every time transaction. This reduces processing time and improves the overall experience. As a result, customers are more likely to complete their purchases! A smooth checkout experience is in fact essential to reduce cart abandonment, which is common ine-commerce (nearly 8 baskets out of 10). In addition, the ease of use and the speed of transactions increase customer loyalty and can lead to an increase in the conversion rate.
Creating new buying paths
Personalizing the customer experience
Tokenization makes it possible to create highly personalized and fluid buying journeys. By keeping tokens associated with customer accounts, merchants can offer payment experiences more fluid and tailor-made. When connecting to an e-commerce site, a customer can be automatically recognized, their purchase preferences and their payment information charged instantly. This makes it possible to offer personalized product recommendations and to simplify the payment process. In addition, thanks to secure tokens, customers can take advantage of one-click payment, without having to re-enter their payment details for each transaction.
Read also: Customer experience: the importance of offering a personalized shopping journey through to payment
Seamless cross-channel payments
Today's consumers use a multitude of channels to make purchases: online, in-store, via mobile applications, etc. Thanks to tokenization, payment information can be Secured and used consistently on all of these channels. A customer can make an online purchase one day, and another in-store the next day, all while using the same secure payment details without having to re-enter them. This ability to manage payments seamlessly across multiple channels, without relying on a single point of contact, offers unparalleled flexibility for consumers and merchants.
New payment models
Tokenization paves the way for innovative new payment models. For example, subscriptions and pay-as-you-go services benefit greatly from security And of the flexibility offered by the chips. Businesses can offer free trials followed by a paid subscription, where the customer's payment information is secured from the start and converted into a paid subscription without interruption.
Integration with new technologies
Tokenization integrates seamlessly with other innovative technologies, such as digital wallets and mobile payment platforms. Solutions like Apple Pay, Google Pay, or Wallet use tokens to secure users' payment information. By combining tokenization with these technologies, merchants can offer modern and convenient payment options, and meet consumer expectations for convenience and achieve unprecedented conversion rates.
Embrace tokenization with Purse
Purse, a SaaS payment orchestration solution, perfectly integrates tokenization and offers your customers secure and frictionless payment experiences. With our intuitive interface, you can easily manage and deploy tokens to protect your customers' payment information while optimizing your conversion rate. Our advanced features, such as the Retry And the Card routing, improve your acceptance rate by intelligently routing transactions to the most appropriate provider. Plus, our commitment to PCI DSS compliance means you can focus on growing your business with peace of mind. By adopting tokenization with Purse, you not only benefit from enhanced security, but also from the ability to offer personalized, omnichannel shopping journeys. Whether online, in-store, or through a mobile app, Purse helps you turn every transaction into a customer experience memorable!
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