5 tactics to balance convenience & security in recurring payments
Payments have become experience architects in subscriptions–an essential aspect of flexible, seamless checkout processes.
Customers are always mindful of sharing their payment information when subscribing to a new service, so striking the right balance between convenience and security is key to long-term subscriber relationships.
Here are five proven tactics you can implement to build a payment strategy that drives sustainable growth.
1. Reduce extra steps during checkout
Payments are pivotal for a smooth consumer experience, and complex checkout processes may overwhelm consumers when buying. According to the Baymard Institute, most companies only need eight form fields during checkout.
Consider minimizing the fields in your site to ask for essential information only–name, billing address, and payment information. This not only makes it easier for subscribers to fill out but also reduces risk, cost, and liability for your company.
2. Offer the right amount of alternative payment methods
Deciding which methods to offer depends on customer demographics, location, and preferences, as well as your subscription costs. Recurly customers saw a lower rate of fraudulent declined transactions with APMs (0.1%) than with credit and debit cards (1.6%).
Consider each method's implementation and risk implications, and test the optimal alternatives that work for your customer base–too many payment options could saturate consumers, and too few could encourage cart abandonment.
3. Leverage multiple payment gateways
A compromised payment gateway allows fraudsters to access customer card information and exposes your business to security risks and chargebacks. Besides, 53% of consumers would unsubscribe if payment issues disrupt their service.
Configuring multiple gateways increases transaction rates by following strict PCI-DSS procedures to secure data, processing payments if your default gateway experiences downtime, and supporting different payment methods and currencies for customers.
4. Implement strong security processes
The payments space continues to evolve with advanced technology. Mastercard’s network tokenization solution, Secure Card on File, allows consumers to check out using a token value that is faster, more secure, and more convenient. Additionally, 3D Secure (3DS) protection adds an extra layer of protection to online transactions, as shoppers are asked to validate every transaction with a PIN code.
5. Leverage an AI-powered fraud management tool
Global ecommerce fraud losses reached $41 million in 2022. Cybersecurity is an ever-evolving field, and keeping up with new threads is challenging. Using risk management tools, like how Kount operates within Recurly, is key to delivering a secure consumer experience. These fraud prevention and digital identity trust solutions help you prevent chargebacks and leverage advanced AI to identify risky behavior in real time.
How Recurly helps you balance convenience & security
Simplify and secure complex payment processing–for you and your customers–with a symphony of resources that reach and win subscribers anywhere you choose to play.
Recurly is the subscription management and recurring billing platform that helps brands like TIME, Paramount+, and FabFitFun deliver a frictionless payment experience that focuses on security and convenience.
Expand and uncover new revenue opportunities with a seamless, scalable, multi-gateway and multi-payment strategy payment strategy.
Want to know how? Check out our Payments Orchestration solutions.