11/11/2024

Mastercard: Tokenized Payments Turn Make-or-Break Checkout Moments Into Sales

PYMNTS

Seamless checkout is a winning mantra for retailers looking to capture sales and delight their customer bases.

Customers largely expect a fast, secure and intuitive checkout process. However, hurdles remain, and a seamless checkout isn’t always as easy as click-pay-done.

“Despite the shift to digital payments, barriers still exist, creating a poor experience for both customers and retailers,” Jennifer Marriner, executive vice president of global acceptance solutions at Mastercard, told PYMNTS.

One of the primary friction points? Fraud is gumming up the works.

Online fraud rates are roughly eight times higher than those for in-person transactions, Marriner said. This creates financial loss for merchants and card issuers. Many fraud mitigation steps, such as complex passwords and one-time passcodes, often introduce additional friction to the checkout process.

For businesses, getting the checkout experience right can help to increase conversion rates and reduce fraud. For consumers, it can mean the difference between intending to purchase and completing the transaction.

How Retailers Can Enhance Online Experiences and Drive Loyalty

Whether they’re well-established pure plays, hybrid retail powerhouses or startups looking to sell online, retailers can enhance user satisfaction and foster long-term loyalty by prioritizing ease of checkout and incorporating customer feedback.