Sophisticated Payment Partner Key for Online Merchants
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Sophisticated Payment Partner Key for Online Merchants

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Erick McKinney - Adyen Mexico
Country Manager


Q: What are Adyen’s main advantages that make it the customer’s best option?

A: Looking at the industry and its alternatives, our value proposition could easily get lost in the sea of seemingly similar options. But Adyen’s key value proposition is technology. We are the only global platform serving merchants such as Uber, Spotify and Microsoft, companies that are quite challenging to serve due to their leading positions in the global digital economy and their complex demands. Our structure is based on the premise of building a single global technology stack, no matter where the merchant is located, which currency is used or what payment method is utilized. This is a benefit for major global companies with a presence on many continents because they face different payment methods and currencies. This is a simple notion but powerful in its value proposition because it allows merchants to scale easily and focus on their core business.


In Mexico, we are implementing this value proposition for our merchants and prospects because they are mature enough to understand that payments are more than just a commodity, they are technological assets driving revenue and an essential benchmark of digitalization. Many merchants still see it as a financial services issue but they could improve their offer by providing a solid payment experience. In this country, Adyen does not focus on small to medium enterprises (SMEs) because they are not quite there in terms of digitalization. Nevertheless, we expect this to change over time. In other countries, we offer our services to SMEs through partners, for example.


Another development we are seeking in Mexico is to combine online and offline environments in a single technological stack, making us the first company in Mexico to introduce this value proposition that we already offer in other markets. This will allow a shift in the omnichannel proposition to make it truly integrated.


Q: What are the dangers of declined payment rates to online businesses and how can they be avoided?

A: It is an issue and it is even harder for developing markets such as Mexico to overcome the risk of declined payments. A few years ago, the cloning of bank cards was still a reality, so people were hesitant to pay by card. At some point, technology and regulation solved the problem with chips and pin codes. Now, the challenge is to bring that same level of security to online transactions. Unfortunately, Mexico’s online environment lacks standardization and homologation. Some banks have digital wallets or apps, others do not. This has greatly impacted the security of online transactions. For these reasons, many clients feel that the barrier to enter online transactions has gotten bigger because of security concerns.


Nevertheless, the panorama for e-commerce remains positive because, despite the challenges, the Mexican shopper wants to shop online. As the COVID-19 pandemic started to become a problem, this demand accelerated further. The challenge is now to tackle security issues. We see two ways to do this: proven, standardized technology and improving regulatory frameworks so that best practices are forced onto the market, which has happened in the European Union, for example. Both these factors help to facilitate a good customer experience rather than push the interests of a single group to the forefront. I believe we are at a turning point in the Mexican market. It is time for regulators to address the issue and for companies to adopt the right technology so that we can keep tackling the challenges of security that we face within complex ecosystems.


Q: If companies experience such risks, how can it impact factors such as client loyalty and payment recovery?

A: It has a great impact on many factors, first of all on income. Many merchants struggle with identifying bad shoppers and good shoppers, which is purely a technology game. We provide merchants with the tools so that they can improve the experience for loyal shoppers. By contrast, they can identify problematic transactions as well. When you are trying to prevent fraud, you can affect good shoppers too. It is also important to deal with issues such as returns, refunds, loyalty programs and duplicated orders in a swift and efficient manner. This is why having a sophisticated payment partner is so crucial.


Finally, revenue assurance is crucial. It is incredible to see that many companies are so focused on pricing that they never question their revenue assurance on digital payments. They would rather offer as many payment options as possible without thinking about how much it costs to ensure they receive their money. Companies cannot afford mistakes: if you block a payment once, data shows that the client will go to another store the next time. Competition in Mexico is fierce, so a good investment in a payment strategy is beneficial. Companies need to diversify their technological approach but the most effective strategies put the loyal customer’s experience first. These are easy to pick out using data but there are always some risks involved with transacting online for merchants. Assessing risk appetite is crucial to a successful fraud prevention strategy.


Q: What are Adyen’s recommended priorities in offering new payment methods on merchant platforms?

A: In developing markets such as Mexico, new payment methods generate quite a bit of smoke. A good example of this was CoDi, which created a lot of noise about how it would be adopted. It is easy to lose focus and pay too much attention to what is coming out. The most consistent payment strategies can secure a good customer experience as well as revenue assurance. It is not about offering all the available payment methods because this makes the merchant less efficient in its operations and customer experience. The most successful merchants are those that understand how clients want to pay. There will always be clients wishing they could pay with cryptocurrency or in pharmacies. The question is whether it is worth it to set up this integration in terms of infrastructure or partnerships. The return is important to consider, too. It is easy to fall into the fear of missing out but if we get back to data and understand shopping behavior, we can form smarter strategies. In some cases, companies see that certain paying options are often used but only because another more conventional method does not function well if it was not optimally integrated. It is not about having it all; it is about making the right choices.



Adyen is a payment platform providing a modern end-to-end infrastructure that connects directly to Visa, Mastercard and consumers' globally preferred payment methods.

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