Why Apple Pay Is the Payment Process Your ECommerce Company Needs

Apple Pay Improves ECommerce Payment Processes

A look at how Apple Pay works with one of the biggest eCommerce companies showcases why payment process improvement is necessary for 2017.  Imagine this situation:  A shopper heads to Jet.com while on a lunch break. The shopper needs laundry detergent, fabric softener, and one item that just won’t come to mind. As the hour ends, the shopper remembers that the item is toothpaste. A tube of Crest is added to the shopping cart, but lunch is over and now Jet.com is asking for credit card information.  It’s quite likely that the shopper is going to think, “Forget that!  I’ll just pick it up on my way home.”

With Apple Pay, a shopper on the Jet.com app or mobile site can simply add an item to the basket, click “proceed to checkout,” confirm payment through Apple Pay, and be done. When all it takes is a few affirmatives on your touchscreen, instead of using the keyboard to retype all the relevant information, there is a greater likelihood a shopper will complete the purchase.

Not even PayPal currently offers the level of convenience, efficiency, and security found in Apple Pay’s payment process. Plus,  Apple has a reputation as a safe keeper of personal information, which is in contrast to how many shoppers feel about storing their credit card and personal info directly with an online store.

This improvement to eCommerce isn’t only applicable for larger sites like Jet.com. Smaller stores can similarly rely on Apple Pay’s functionality to impact customer behavior. As well, the convenience of Apple Pay isn’t restricted by industry or target market. People across demographics own iPhones, Macs, and iPads. Most importantly, though, those individuals most likely to make purchases online own these devices.

Apple Pay Can Resolve Mobile Shopping’s Biggest Drawback

The number of shoppers that abandon their shopping cart and added items during the payment process is almost unbelievable. Certain data shows that over 50% of potential customers add items to their cart, click “proceed to payment,” but for one reason or another do not finalize the purchase. It is a statistic that pinpoints one of the biggest pain points for eCommerce stores right now.

This isn’t just a problem for eCommerce merchants in the United States. Shoppers in the UK and Europe exhibit the same habits regarding cart abandonment, and, in the UK, the number of shoppers that leave their cart during the payment process is over 65%.

Why do so many potential customers duck out at the last minute? For the most part, these shoppers find the payment process to be obtrusive and burdensome. What is often required is entering credit card information and a shipping address, but for many people that requires having the right credit card accessible and the time to enter it all in. If shopping in a hurry or on the go, this information might not be available, which would explain why most shopping cart abandonment occurs when customers are on their mobile devices.

Apple Pay’s Beginnings as a Brick-and-Mortar Technology

Apple Pay did not start out as an eCommerce option. The technology was designed for convenient mobile payment in brick-and-mortar stores. Apple Pay allows users to store their credit card information and payment options on their mobile phones. Then, when shopping at the U.S.’s biggest brands, such as Whole foods or Starbucks, the user could simply tap his or her phone for payment. As an added benefit, Apple Pay offered users additional security from credit card fraud.

Back in 2014, this was seen as the payment process of the future in the physical space. However, something changed between 2014 and today that altered Apple’s focus on physical locations such as McDonald’s and Target. In the three years since Apple launched Apple Pay, eCommerce gained a significant amount of ground on the traditional shopping experience. People literally went from ordering tents and gym shoes off Amazon to buying their groceries through artificial intelligence.

When first released, Apple Pay functionality as a payment process wasn’t ideal for eCommerce. This smartphone technology was designed to make checkout in a physical store faster and allow people to carry fewer items when running errands. ECommerce demanded it to be accessible in a non-physical setting. As recently as mid-2016, Apple Pay was a payment process dedicated to physical stores and very few eCommerce sites supported the application. A year later that’s entirely changed. Upwards of 35% of online stores, across all eCommerce platforms, give their customers the option of Apple Pay.

While Apple Pay was likely to become an applicable tool for eCommerce eventually, the data available on eCommerce sales made it a certainty. Consumer statistics indicate that over 40% of all transactions worldwide will happen via the Internet by 2021.

Integrating Apple Pay with Your ECommerce Store

ECommerce platforms have slowly but surely created the functionality to integrate Apple Pay with their online stores. Shopify turned to Apple pay in May 2015 as part of a new mobile e-kit for checkout and the payment process. Shopify, correctly, thought that one-touch payment options like Apple Pay were huge improvements to the mobile shopping experience.

In September 2016, BigCommerce also embraced Apple Pay. From then forward, BigCommerce stores could offer customers the option of Apple Pay when shopping from Safari or an Apple device. WooCommerce and other eCommerce platforms provided integration options later in 2016 and in the first quarter of 2017. Today, most platforms have a mechanism to integrate Apple Pay.

However, it is important to remember that processing online payments actually relies on two different technologies. There is the application that takes information and accepts the order, for instance Apple Pay, then there is the payment gateway, which actually ensures the transfer of funds. Not all payment gateways work with Apple Pay, even if your chosen eCommerce platform allows for one-touch checkout. For instance, BigCommerce is a huge proponent of Apple Pay, but in Australia there is still only one payment gateway for the platform that accepts Apple Pay. It is for this reason that your choice of payment gateway should receive the same attention and time as picking your eCommerce platform.

Web Development that Understands ECommerce

Questions about the functionality of the latest payment gateway or a certain payment processor are specific to eCommerce. To ensure your online store, whether built through Shopify, BigCommerce, Woocommerce, or another platform, utilizes the best technology for your business, you want the right web development team.

1Digital Agency only offers web development services for eCommerce. Online selling isn’t just what we know best, it is all 1Digital Agency does. Head to our website to learn more about our eCommerce web development, including the integration of the best payment processor for your online store.

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