Smooth Payment Experience Is Essential for E-commerce
The pandemic boosted online expenditure in numerous countries across the world, including Mexico. As customers gain confidence to shop online, e-commerce companies must take into account user and payment experience to make the most of this booming market.
“Providing a great experience is essential to retaining a customer. Every touchpoint a client has with the company should be superior to the competition’s,” said to MBN Pablo Estévez, CEO, GUS.
The quality of customers’ payment experience, which involves simplicity, speed and smoothness, has a direct impact on e-commerce retailers’ business goals, according to payment solutions provider CCV GmbH. By improving the user experience (UX) during the payment process, companies will reduce cart abandonment, increase spending per customer and create loyalty.
Innovation within e-commerce brands and third-party service providers, from fraud prevention to payment experience, is important to improve UX and increase retailers’ revenue. “In Latin America, smartphone users spend 84 percent of their time on a messaging app and, on average, open their WhatsApp 200 times a day. The future of customer experience is messaging,” said Estevez.
Machine learning and big data can be leveraged for fraud prevention, said to MBN Víctor Islas, Country Manager, ClearSale México. “Currently in Mexico, 14 percent of total e-commerce transactions are declined. The problem is that 60 percent of these are legitimate. Businesses have the opportunity to grow their sales by 8 percent to 10 percent only by improving their fraud detection models.”
Online spending in Mexico continues growing. In 2020, e-commerce in the country reached a value of MX$316 billion (US$15 billion), which translates to 81 percent growth compared to 2019, according to Fernando Thompson, Founder and Chief Innovation Officer, TBSEK. The products generating the most interest among Mexicans for online purchases are food deliveries, technology, supermarkets, medicines, fashion accessories and beauty and personal care products, added Thompson.
Mexico ranks second in Latin America for the highest e-commerce growth, behind Brazil. This consistent growth has led industry leaders, such as Mercado Libre, to continue investing in the country. Recently, the e-commerce giant announced a US$1.48 billion investment to strengthen its logistics network in Mexico, as reported by MBN.
The e-commerce boom and the strategies retailers can take to capitalize on it will be discussed during Mexico Business Forum 2022. The event, hosted by Mexico Business on May 11-13, 2022, will feature leaders from diverse sectors to discuss the latest trends and hottest topics impacting business in the country.
Listen to GUS’s Pablo Estévez and other industry leaders in the panel “Why UX and Payment Experience Really matters for E-commerce” and learn the insights directly from those who are shaping the industry.
Tickets for Mexico Business Forum 2022 are available here. Join the future of B2B conferences now!