Business

CASES WHERE PAYMENT INFORMATION IS REUSABLE

The ability to record and retain a customer’s payment credentials gives businesses the flexibility to set up company-side initiated payments as described above, without any additional customer intervention. Credit card information (without CVC number or use of 3D-secure) can be considered as “reusable” because once the customer has communicated them for the first time, they no longer need to provide them again in case of new purchase. Payments by direct bank debit, by which the customer provides his account number to the seller, also constitute a means of debit via “reusable” data.

NO, PAYMENT INFORMATION IS ONE-TIME USE ONLY

In this case, the customer controls the actual realization of each payment. The most trivial example is payment in cash: the company only receives the funds if and when the customer remits the amount. Another example of a single payment is a bank credit transfer, when the customer instructs his bank to transfer funds to a recipient bank account, only for a given transaction. The two types of payment, whether initiated by the customer or the seller, are “single-use”: the customer must explicitly authorize each transaction, either by creating the payment himself, by connecting to an application. , or by entering a one-time code.

The three questions above can help businesses classify a payment method they are unfamiliar with, and think about its relevance to their business. We will then use these properties to describe the payment methods supported by Stripe.

Considerations applicable to the industry

Customers expect more speed and ease of use when interacting with businesses online. To enable the best customer experience, it is important to take into account the business sector of the company, its main channel of interaction with the customer, and its risk-taking practices. Here are some general rules for businesses to consider.

Mobile commerce

Companies that are growing in the mobile world pay particular attention to ease of conversions, in a context where the screen surface is reduced and the ease of entering data during checkout is crucial. Payment methods accessible by customers from a previously installed mobile application can offer a simplified shopping experience, while ensuring reduced risk of fraud through payment verification, as customers need to confirm payment from within the app. Like Alipay in China, Ban contact in Belgium or Klarna in Sweden, these applications offer, by default, web payment experiences for customers who have not installed the application, with the same payment guarantees. Apple Pay and Google Pay are adapted to mobile commerce by definition, offering native authentication from the mobile device.

On-demand economy

With instant order fulfillment central to the on-demand commerce experience, they need to drive conversions, often on mobile, while managing the high risk merchant service. Payment methods that offer immediate confirmation and verification of the transaction are the most suitable for the on-demand business model. Saving payment information to enable one-click confirmations, as is the case with credit cards or even direct bank debt payments, allows businesses to reduce the length of the payment process.

Saas (Software as a Service) and non-profit organizations

Companies offering Software as a Service (Saas) and nonprofits rely primarily on subscriptions, as well as larger payments that can be settled by wire transfer. Support for reusable payment information from bank cards or bank debt payments makes regular billing to customers and donors easier. At the same time, the support of transfers by bank credit, in countries where business customers are established, makes possible payments at increased amounts, for treatment at reduced cost, and while making them irrevocable. In addition, for a Saas (Software as a Service) company, offering additional payment methods is often one of the only obstacles to increasing the conversion potential of its audience.

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