A successful E-commerce platform is that which brings in the cash. After browsing through the website and putting their purchases in a shopping cart, the payment options complete the entire transaction successfully. However, many times online shoppers are putting their purchases in the cart, but do not go through the next process, which results in shopping cart abandonment.
One of the main reasons for the shopping cart abandonment is the perceived risk of fraud in online payments. Online retailers are introducing more and more secure methods of online payments to reduce fraud and convinces the shoppers of the security of their transactions. So, what are different methods of electronic payments systems that retailers are offering to the customer?
The most common form of payment in E-commerce transactions is the credit card. To make payments through it, the shoppers has to enter their credit card number, expiry date and name, along with the card verification number or CVN/CVV number, CVN system detects fraud by comparing the CVN with the cardholder’s information as supplied by their bank. After verifying all the details the shoppers is redirected to their bank’s webpage, where they need to enter their online transaction password. This is an additional security measure added by most E-commerce platforms. After its verification, the transaction is completed.
The digital wallet or e-wallet is yet another payment option in E-commerce platforms. It works more like a physical wallet, and can store personal information and payment and has to be stored on your PC. Once you install the software and enter your personal information, all you need to do is connect it to your banking information, so that in can be used to make payments for your online transactions. On the checkout page of the e-commerce website, the digital wallet can automatically enter details into the appropriate areas.
E-cash is another internet-based system that allows you to make payments on E-commerce websites. It is equivalent to cash, except that it is transferred through networks with bits of information. It can also be considered secure as anonymity is preserved trough digital signatures. It’s functioning is similar to electronic fund transfers done by banks
Mobile payment is the new kid on the block for making payments in E-commerce, wherein online shopper uses their mobile phone to make purchases. Instead of using cash or credit cards, the user sends a payment request via a text message. If the vendor has mobile billing capability, the consumer’s mobile account or credit card is charged for the purchase.
E-commerce retailers are pulling all stops to ensure that E-commerce transactions are secure, billions of dollars are invested to avoid fraud, and it has been partly successful in changing the mindset of online shoppers towards making online payments. For those shoppers who are not convinced there is always “ cash on delivery”.