Using Payment Initiation Services to improve conversions for eCommerce businesses
A complicated checkout process is one of the major reasons why users abandon the checkout process, as 17% of shoppers in the study conducted by Baymard institute in 2022 responded. The media break or manual data input during your payment process builds friction in your seamless customer journey. Streamlining the checkout and payment process by removing unnecessary clicks will make the consumer journey fast and convenient.
Payment Initiation Service (PIS) uses Open Banking as a basis and allows for account to account payments without making customers register for a payment service and without experiencing friction during the customer journey.
In this article, we will guide you through how eCommerce businesses can benefit from a secure, convenient, and cost-effective payment initiation to improve checkout conversions and customer experience.
Let us take a look at what a payment initiation service is and how it works.
What is a Payment Initiation Service?
Payment initiation service allows businesses to integrate an account to account payments without their users having to register for a separate payment service or having a credit card at hand. This helps eCommerce businesses to drive better customer experience and take advantage of cost-effective benefits.
The customers can connect their account using Open Banking without having to register and proceed with the payments. This helps to drive a frictionless customer journey and speed up the checkout process.
Benefits of Payment Initiation by Open Banking
Payment initiation services are unlocking a variety of benefits, not only for businesses but also for customers. Payments initiated using Open Banking have these key benefits:
- Drive friction-less customer journey and high conversions
- Cost effective solution compared to traditional payment methods
- Fast payments from directly to account without intermediaries withholding funds
Further, it reduces the complexity for customers with no manual copy & paste of payment details. Along with fast, convenient, and cost-effective payments, account to account payments improve the security for your business by eliminating the risk of frauds, chargebacks, and reconciliation costs through strong customer authentication (SCA).
How does it work for your business?
Our Payment Initiation Service is a white-label plug-and-play payment frontend which can easily integrate into your payment process. To initiate payments, customers follow these simple steps:
- Once the amount and the recipient’s payment details are defined, customers can connect their account using the payment link shared by us
- Customers can use the TAN procedures which they are familiar with to authorise the transaction
- After authorising the transaction, both business and customer receive a payment confirmation
With our fast and cost-effective payment initiation and account to account payment solution, there are numerous use cases possible, like driving high conversions for eCommerce business and effective management of claims and invoices for debt collection and asset management organisations.
Payment Initiation Service by finleap connect
At finleap connect, being at the forefront of Open Banking, we are driving technological changes in the payment landscape. With our payment initiation services, we bring more opportunities for businesses with seamless customer journeys and higher conversions for eCommerce business.
Some of the key features of our payment initiation services:
- Fixed cost per transaction starting from 0,10€
- Highly secure and reliable processing without intermediaries
- Highly convenient and frictionless customer journey to drive higher conversions
Book a free session with one of our payment initiation experts Katharina and learn more about the benefits of Payment Initiation for your eCommerce business!
Interested in learning more about Payment Initiation and Open Banking technology, feel free to contact us! We will soon reach out to you!
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