Published by Lucie Poirier
Abandoned carts are a big headache for merchants. They amount to $4 trillion in lost sales (and counting). 45% of shoppers in the UK have abandoned a purchase because of payment issues. Abandoned carts are one of the worst things for merchants because all the acquisition costs for new merchants have already been spent. Recent studies show that the cart abandonment rate can be lowered by tricks such as Tokenization.
First of all, payment information is sensitive and should only be stored inside a PCI certified environment. The storage of this sensitive information may only happen in PCI certified environments such as wallee. Therefore, we use the concept of tokenization. Tokenization, when applied to data security, is the process of substituting a sensitive data element with a non-sensitive equivalent, referred to as a token, that has no extrinsic or exploitable meaning or value.
wallee offers you an easy way to store this information by creating a token with a reference. Returning customers can then make a new purchase faster using the token in the checkout. Moreover, you as a merchant can use this token to create a charge flow or a transaction for later charges without having to ask the customer for the payment information again.
Entering payment details is the least fun part of shopping, so why do you not ask your customer if he wants to store his payment details? This improves the experience, and your conversion rates will soar. We recommend to ask your customer to store his details for future purchases, which they authenticate with a password if they create an account.
Loyal customers can speed through the process and you do not have to worry about storing sensitive data on your servers. You will see that in our world with increasing mobile traffic one-click payments are a huge asset.
When your customers will order in your Shopify online store for the first time, after selecting the payment method in the checkout, they will have the option to store the card details for future use. This option is only presented for customers that have created and logged in into their customer account. Otherwise we cannot prevent that the tokenized card data is shown to the legitimate customer.
If they have chosen to store the card details and once they return to the store for a new purchase, they will have the option the select the stored card or select a new one.
There are also additional use cases for tokenization depending on your business model. If you tokenize cards you can use this information to charge your customer at a later stage without him being present at the moment the charge takes place. Of course you need to make sure that you have his consent.
Example of such use cases could be if you run separate subscriptions or if you sell complementary goods the customer can return or re-purchase in a certain time-frame. Once the customer created a token you can access the token via the wallee API. You can then use this reference to create charges without customer interaction.
The best of all advantages is that this feature is available for all wallee products.
More information is available in our Shopify tokenization documentation.
We have created a demo store for you to see everything in action. In this case we enforced customer to create an account. Otherwise we can not offer tokenization due to security reasons.
Find more information about the wallee Shopify payment integration and all other supported features on our Shopify Feature Page.
If you have any remaining questions, do not hesitate to contact us.