During the fourth edition of our we learned about the latest trends in online payments. More than 200 attendees shared with us new knowledge about Fintech, the different international payment methods and also how to choose the ideal payment tools in our round table with Anthony PonceCFO of , Eve ThomasCEO of , Enrique Arteagateam leader of and George Guillametsales & growth director of .
This second round table offered us a broad overview of the ideal means of payment for an eCommerce, a meeting that was reflected in this podcast that we share with all of you.
Round table: Choose the ideal payment tools for your business
18:23: What payment methods do you work with and how was the process to choose it?
Anthony Ponce (): We are not very supportive of an excessively high portfolio since on some occasions this can cause some confusion for the customer, who can choose the payment method that least suits their needs and the purchase can be dropped.
So in our case, we basically have three types of payment methods, each one oriented to a specific customer target:
- traditional Card, a very prominent payment method in most European countries, very familiar to eCommerce customers and with fairly high levels of security and, at least in our case, has a fairly moderate drop rate when compared to other payment methods. Today for us it is the most important form of payment in terms of traffic volume.
- traditional forms of payment, what are they concretely cash on delivery and transfer. Although they do not represent a complete customer experience, they do allow us to address other segments such as B2B, in which transfers are much more widely accepted than payment by card, and in the case of cash on delivery, it allows us to reach customers who do not are very adapted to online shopping and find in this method an easy and secure system to make your purchase online.
- Financing. In this group we have partners who offer us very interesting solutions that They allow us financing at quite reasonable times, taking into account the nature of this financing, and allow an immediate acceptance time of the operation or with very small delays.
For eCommerce like ours, this type of payment method is essential because we usually talk about fairly high average baskets and there is a very clear typology of customers who are looking for this type of payment method based on the high amount of the purchase.
These types of payment methods do not generate friction in the evolution process. If a client makes a purchase with us and resorts to a type of postponement that involves the payment of a commission or a down payment, if the withdrawal occurs, that amount is returned and the debt with the financial company is cancelled.
25:09 In your case Eva, do you also have some type of installment payment?
Eva Tomas (Manzaning): No, we do not have any installment payment model. The average ticket in recent years has increased a lot, and until now we worked with average tickets that did not ask for so much postponement. Now we find tickets that exceed 100 euros and now it may begin to make sense to incorporate some type of tool of this style.
As a very specific feature of our business model, we work with fresh produce, mainly food, and this means that many of our products are sold by weight, and this fact means that there may be some variation when making the final payment.
On the other hand also We work with very small businesses that do not have any kind of stock creation, so the catalog of products that you can see on our platform is not integrated with their stores or shops, so it is possible that when creating the order they may contact you to notify you that a product is not available at that time .
The customer is informed that his cart and the amount is indicative and there may be slight variations that will be communicated to him and a credit card hold is made. When the shopkeeper validates and prepares this product, he informs us of the final amount and is when the customer is charged, a difference between many other online stores.
28:43: You told us that they have two payment methods for Barcelona and external. Because it is?
Eve Thomas (Manzaning): Basically because when we started in Barcelona four years ago it was interesting to integrate , and it is with the platform that we have worked so far in Barcelona. However, in the new marketplaces of Viladecans or Premia de Mar we tried a new payment gateway to test with Paycomet.
29:28: In your case, Enrique, what other payment methods do you use?
Enrique Arteaga (Emma Mattress): Our case is also special because we operate in 20 countries, and in order for the system not to go crazy we have to integrate similar payment methods in all of them.
A bit like Antonio comments, we have traditional methods such as credit card, bank reference, payment in installments with PayPal, which has also grown a lot in recent years and finally we have implemented that although in Spain it is not yet as powerful , in other European countries such as Germany it is growing quite a bit and above all it gives confidence since Amazon is very big nowadays and it is very easy to just click and pay since everything is saved.
30:40: In the case of Aplazame, making changes to a payment gateway is the most sensible change that can be made in an eCommerce. How do they deal with the fear that eCommerce may have of touching their gateways and inserting new things?
Jorge Guillamet (Delay me): We try to make our user experience as intrusive as possible, otherwise the conversion will drop in the end. So for a merchand to decide to use us too we think it is the easiest and simplest to integrate.
For this we have developed CDKs, that is, connectors that allow Aplazame to integrate with standard platforms in less than half an hour, so it integrates directly without touching the platform. In the case of companies that have their own development, we have an API that, although it takes a little longer to integrate since, being an in-house development, its technicians have to participate, in a matter of days it is integrated without touching the core of your gateway. of payments. Our obsession is to make the integration as easy, safe and simple as possible.
33:27: Have you thought about and rejected integrating third-party payment methods like Amazon Pay?
Eva Thomas (Manzaning): Right now it would not be in our immediate plans to incorporate new payment methods since for now we focus on making our operations more efficient and the delivery capacity that during these three months we have grown very big and we have not stopped delivering the next day.
In fact, on the contrary, some clients asked us for the cash on delivery, which we don’t have either, but we have analyzed and we see that the cash trend is decreasing. Another point that we have analyzed and maybe at some point we will do it is the payment by WhatsApp and both businesses and customers have demanded it from us.
Antonio Ponce (PcComponentes): If we talk about Amazon Pay, the truth is that it is not a form of payment that is on the table fundamentally because It does not seem reasonable to us that our most direct competition manages one of our forms of payment.
The case of and other payment methods are on the table, in some cases like Bizum they are already undergoing an advanced feasibility analysis since it really seems to us to be a very interesting form of payment. What we are looking for is to weigh what we are going to obtain either in terms of attracting customers or improving trade.
40:10 For Manzaning, Karla Días asks, What margin of error do you have to modify the retention of the client’s collection with the final payment?
Eva Tomas (Manzaning): We ask that if the difference is greater than 10% of the amount, there must be communication between the merchant and the client, and for this reason we provide our own chat channel and through the network we also integrate it with WhatsApp.
41:33: How do you solve the problem of card schemes in the aggregators of various merchants?
Eva Tomas (Manzaning):Within the markets, we allow multi-trade purchases because in the end, logistically for us, it means a single checkout and a single shipment. When we talk about different markets or different businesses, it has to be a purchase or order by business or market.
Antonio Ponce (PcComponentes):In our case the payment is unique, the only limitation we have is that if we operate through marketplaces the only possibility of payment is by card, the customer makes a single payment and from there we are in charge of directing the money to the stores or us.
43:19: What percentage of cannibalization has Amazon Pay accounted for and what increase in sales has this payment method brought?
Enrique Arteaga (Emma Mattress): An important point to note is that we also have sales on Amazon and it is a link that we have had for a long time and it has not been such a radical change. Sales with Amazon Pay represent around 5% of the total, it is not radical and does not affect the rest of the payment methods.
45:53 How do you think payment methods will advance in the future?
Jorge Guillamet (Delay me):On the one hand, all those that are digital payments will grow along with eCommerce, and within the digital payments part, financing will increase because in the end there will be people who need to buy but will have to resort to financing. That is why the great potential of being able to finance digitally will go further, everything that facilitates the customer and avoids abandoned carts will grow.
Enrique Arteaga (Emma Mattress):I recently saw a report where it says that credit and debit cards will soon disappear due to the rise of digital media, so I also believe that this is the future.
Eva Tomas (Manzaning): This is a topic that will evolve very quickly. In recent months we have seen an acceleration of everything that constitutes the digital ecosystem. Many barriers have been broken, many people who had never bought online have tried it, and this has generated a greater push for the change in the coming years to this same one. You have to be aware and any news that makes the checkout process easier for the customer is welcome.
Antonio Ponce (PcComponentes): Many news await us in terms of payment methods. The historical preeminence of the card will decrease in the coming years and forms of payment such as financing or wallet type will gain weight. They may also have a certain path in the coming years forms of immediate payment that do not support cards but customer bank accounts.
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