Increasing eCommerce conversion using Afterpay, Zip and digital wallets.

There has never been a more interesting time to be an e-commerce brand or an online consumer in Australia. As a consumer, services are improving exponentially to make buying online smooth, seamless and joyful, presenting a massive opportunity for brands.

In 2018, Australians spent $27.5 billion on online shopping, up 24 percent from 2017, and with events such as Black Friday growing in popularity (not to mention the COVID19 restrictions we now find ourselves living with) we would confidently bet that these figures have jumped up even further.

This rapid increase in e-commerce purchasing is thanks to a combination of factors which have made buying online more accessible than ever before.

• Services like Zip Co and Afterpay make shopping flexible and accessible.
• Digital wallets, like Apple Pay and Google Pay, make mobile transactions a sinch.
• Technology has made the entire process so smooth that the feeling consumers have when shopping has completely changed.

The Payment Landscape Is Changing

Considering the factors above, the significant habit changes that are occurring in the e-commerce sector today are in the payment options offered and preferred by Australian consumers.

According to Finder.com.au, 72.4 per cent of Australians use digital payments when shopping online, and of this group, non-bank apps are preferred. This includes buy now, pay later (BNPL) options including Zip Co and Afterpay, as well as digital wallets like Apple Pay, PayPal and Google Pay.

This is unsurprising, of course. It feels good to shop this way. As our platforms improve so too does the user’s experience of shopping. Shopping is no longer just something we do out of necessity. It is something we do for pleasure.

It feels good to touch a screen and complete a transaction. It feels good to be able to act on an impulse to buy, using innovative, flexible solutions that fit with the dynamic lives of consumers.

It feels good to be unhindered and face no inconvenience when we shop. This is why online shopping is flourishing. And this is all thanks to building e-commerce platforms with user experience at their core.

Buy Now, Pay Later

In 2013 and 2014 respectively, Zip Co and Afterpay entered into the Australian FinTech sector and propelled a movement toward buy-now, pay-later shopping. Sure, we had Laybuy, but Zip and Afterpay took it beyond brick and mortar and into our online realities.

Zip Co made it easy for consumers to apply for an account where they could take home items long before any payment was needed, all interest-free, up until an agreed-upon date. And Afterpay became an expected option at every register, both online and offline, to take items home today while paying it off in instalments over time.

Afterpay has become such a staple in Australia that between 2017 and 2018, it processed 6.7 per cent of Australian retail and e-commerce transactions through its platform. That figure is expected to rise.

Digital Wallets

No longer do consumers need to reach for their credit cards to complete a transaction. A simple look at their phone, using FaceID, or touch of a keypad, activating TouchID, enables an integrated payment solution to complete the transaction.

This payment experience can now be seamless across the majority of our daily purchasing habits; if our favourite brands design it to be so. Not only is it a better experience, but it is also more secure.

The great benefit for brands is that Apple Pay, Google Pay, or PayPal all have open API, meaning that they can be used via webpages, as well as apps. Every brand can (and should) adopt them.

User Experience Influences Purchasing Behaviour

At the end of the day, all of the above comes under one banner: UX. It’s all about enhancing the users’ experience, and it is those who develop these experiences for their customers who have the ultimate influence over their purchasing habits.

Adopting services like Afterpay make it easier to secure purchases flexibly, giving consumers more options to complete transactions in the way that best suits them. This addition to your e-commerce checkout increases conversions just simply by adding another option.

The same is true for digital wallet integrations. With one-touch or -look verification, consumers are freed of the arduous process of typing in credit card information to complete the transaction. A significant barrier is removed.

With open APIs, integrating these solutions across existing and emerging e-commerce brands is easier than ever. No apps are required. Every brand that receives purchases from consumers using a mobile site can now be offering digital wallet integrations to encourage smoother mobile experiences, and thus more mobile sales.

E-commerce is all about the experience, convenience and joy of the purchase. Brands who invest in the evolution of user experience will be the ones to charge ahead of their competition.

Contact Frank Digital to discuss your eCommerce project today.