Klarna: how can we enrich customer experience?
In a recent Swedish online payments firm, released new research with leading SaaS eCommerce platform provider , in partnership with Andrew Busby, an expert in retail. This research highlights the fragility of the online shopper journey and a hierarchy of needs that should be met to enrich a customer’s experience.
2000 UK shoppers were surveyed between 20th - 25th March 2020 to form part of the report, . According to the study, on average, UK shoppers abandon a purchase 1.27 times a week - where do the pinch points lie? We examine some of the results below.
- The lack of affordable and fast delivery options: 54% of people surveyed said they abandoned their shopping cart due to the limited delivery options offered. Delivery appears to be a significant drop-out point in the online shopping journey when the only options are expensive and not flexible, potentially pushing customers to either disregard the purchase completely or seek to buy it physically in store.
- The bother of card and account details: 23% of consumers said they are influenced by the checkout speed process when buying online. With retailers having too many steps when checking out and being pushed to create an account, it’s no wonder carts are left abandoned. 27% admitted to discarding their basket because they couldn’t remember login details and 26% said they did the same because they ‘couldn’t be bothered’ to prepare their card details. Problems like these have been solved already, for example, Amazon’s 1-Click Ordering service completely skips the checkout service altogether. With login and payment detail pages almost becoming a barrier to purchases, it’s a wonder why checkout pages remain somewhat dated.
- The safety of buying: this does not only refer to the security of a website, although a staggering 75% said they would more than likely abandon their purchase if they did not trust the website. COVID-19 has brought in a new range of expectations for consumers when expecting a delivery, one of those being non-contact delivery. This approach has been essential for delivery drivers and customers alike by keeping them safe and confident in the service.
“Innovation is key, retailers are right to consider new ways of reaching customers and bringing the same enriching experiences to them in this strange new world,” commented . “But, in a matter of months, functionality and safety have shot to unprecedented levels of importance. Physical stores may never look the same again – online retailers are under peak pressure to make the shopping experience as safe and seamless as possible.”
Founded in 2005, the company’s goal was to “make shopping smoooth” and they insist on the 3 o’s. Klarna offers a variety of payment options like splitting a payment into instalments or buy now pay later, working with over 200,000 merchants including the likes of Samsung, IKEA and Nike, to name just a few.
The key to its success is charging no interest and giving consumers power in flexibility, a point reinforced by the statistics, with 22% of people surveyed saying they are encouraged by flexible payment options. Retailers offering Klarna’s services reported a 30% increase in orders and a huge 68% increase in order volume. Ecommerce will be an industry to watch post-coronavirus, as the new normal sets in, is it time to revolutionise the way we shop online?
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG