White paper by Axerve examining digital payments trends and the importance of hyper-personalised and multi-channel payments services

Axerve, Payment Partner to Grow, specializing in creating accessible and frictionless payment solutions for Ecommerce and physical sales, today announces the release of a new white paper, ‘New technologies and trends in digital payments in 2022’. The whitepaper examines the factors that drive digital payments worldwide and evaluates the impact on merchants.

Payment is a crucial phase of the purchase process. This is because it is what determines the transition from customer purchase intention to actual sale. It is crucial that merchants maintain a high level of customer experience and cart conversion. Payment should be as smooth and quick as possible while also being transparent, secure, and compliant to relevant PSD2 regulations. In this context, solutions that manage the growing number of complex multi-channel payments for retailers while delivering hyper-personalised services – aka services that respond to the specific needs of the merchant, based on their target demographic habits and preferences and geographical regions – is important for customer experience.

Merchants face increasing challenges because multiple digital payment options such as cryptocurrency, Buy Now, Pay Later (BNPL), and contactless in-store payment such as SoftPOS are becoming more popular. This means that they must use multiple payment methods at checkout.

Platforms that can satisfy increasingly complicated and personal needs from both the merchant’s and customer perspectives are the technological response of the payments world to new forms of buying. A study by Accuity, a LexisNexis® Risk Solutions company, estimated that failed payments, as a result in part of problems in the management of payment flows, have cost the global economy $118.5 billion in fees, labour and lost business in 2020.

This increased complexity can be managed by payment orchestration.  Axerve’s Payment OrchestraTMPayment Orchestra manages interoperability among all types of transaction and simplifies payment configuration through a new software architecture. Payment OrchestraTMThis allows for significant cost savings on multiple Ecommerce integrations, and also allows you to be independent from payment service provider (PSPs) Multi-solution integration allows businesses to instantly switch to the best-performing provider when they purchase. This gives them industry-leading response times.

Since the advent of digital and the goal to combine a variety of features, all payment processors have invested in the development of new platforms, laws, and processes. Companies and institutions are investing in a variety of areas to improve the shopping experience and the collection experience for merchants, including regulation, alternative payments and fraud prevention.

Merchants also have to comply with the SCA and PSD2 requirements. Merchants have the opportunity to take advantage of PSD2 and prevent transactions from being rejected during authentication. This will improve their customer experience, as well as the overall conversion rate. Axerve Advice’s risk analysis tool allows you to request an exemption to the application of 3DS protocols. Axerve’s own payments data shows that by using Axerve Advice’s Transaction Risk Analysis 98.9% of the total transactions managed by Axerve were sent exempt to issuers, who did not apply two-factor authentication in 89% of cases. Only 2.9% of these 89% received a soft decline by issuers. However, 80.2% of those 2.9% were sent with the SCA request, and the results were positive in all cases. Axerve advice reports that most transactions thought to be fraudulent by an issuer were actually genuine. Axerve found that 99.9% of soft decline transactions passed the authentication phase. As a result, less than 0.08% transactions failed to pass the authentication phase. This is an indication of the effectiveness of risk analysis methods.

Axerve is a part of the European fintech Fabrick’s open finance ecosystem, and beyond this, the Company supports a diverse mix of institutions, international corporations, and retail chains by offering innovative technology and data security across global payment methods. Axerve assists its partners to anticipate the trends in digital payments. Axerve processes over 4 million requests per month. It supports customers in choosing the right solutions for their business, and suggests the best tools to increase sales and loyalty.

Alessandro Bocca CEO of Axerve commented: “The release of Axerve’s white paper today underscores the significant innovation and growth in the digital payments space of recent years. Merchants must be able to offer customers a variety of payment options. This is why it is important that they have an omnichannel approach, a fluid platform that allows them to simplify multiple payments and a fluid way of interacting with the emerging forms of buying experiences.

“This is an increasingly complex task meaning that retailers stand to benefit from an expert payment partner. Orchestration models such as Axerve’s Payment OrchestraTMoffer consistency along the entire payment flow.”

Get latest news from African Startup ecosystem

Latest stories

You might also like...