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How payment data increases conversions

PAYMENT PERFORMANCE

Jc Gellidon 715597 Unsplash Jc Gellidon 715597 Unsplash Placehoder

Increasing payment acceptance rates is an important but difficult task in an online merchant’s hunt for better conversion rates. Bambora is now finding new ways to reduce false declines thanks to advanced and innovative analytics. “We boost their profitability by using actionable insights from data analytics", says Sofia Albertsson, Head of Payment Performance at Bambora.

Conversion rate is one of the most important measures of the effectiveness of any e-commerce site. And while merchants invest more and more in their user experiences and try to reduce cart abandonment, they often lack access and ability to interpret acquiring data and drivers of rejected purchases.

“To increase your turnover and reduce false declines, you need to understand the details of why purchases are rejected. Bambora’s payments performance team helps our customers do that by continuously developing our analytics capabilities and looking at how we can walk the extra mile for our merchants. We leverage data and work closely with all stakeholders to identify business and technology driven changes that boost performance”, Sofia Albertsson explains.

Optimizing performance is a balancing act between different goals in the payments ecosystem. Conversion, fraud exposure and transaction cost are all closely linked, and available tools and strategies will have an impact on all of them. For example, increased security will boost acceptance rates, reduce fraud exposure and lower transaction cost, but in some markets, adding another step in the payments process could drive customers to abandon the purchase.

Giving merchants and partners access to this advisory function from its acquirer aims to generate tangible value. By helping them navigate the complex ecosystem of stakeholders and data, optimized performance can often be achieved through low cost improvement measures.

Conversion is closely linked to most other factors in the payment ecosystem, ranging from fraud exposure to the technical setup"

SOFIA ALBERTSSON, PAYMENT PERFORMANCE MANAGER

Boosted conversion from 87 to 94 percent
Sofia Albertsson brings up one of Bambora’s merchants, and international airline, as an example of how the conversion enhancement process can work. When preparing for the regular business review meeting, the payment performance team saw that one Nordic country showed significantly lower acceptance rates compared to the merchant’s other markets. When digging further into the data, one issuer bank was found to drive 70 percent of the declines.

“We initiated a dialogue with the bank to understand why their acceptance rates were so much lower than other banks’. After an iterative process, the bank agreed to change their processing routines. The airline’s acceptance rate increased by an impressive 7 percentage points, from an already strong 87 percent to an outstanding 94 percent acceptance rate”.

This example shows how the right analytical approach, combined with acquiring expertise and investment in relationships throughout the ecosystem, can drive tangible improvements for merchants. Leveraging the hidden value in acquiring data, Sofia Albertsson explains, lies at the heart of Bambora’s “Advanced Acquiring”: a data-driven approach to acquiring that uses analytical tools to help enterprise customers thrive.