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Find Out Why Having an Online Store Makes Sense

Category: Ecommerce

Find Out Why Having an Online Store Makes Sense

Find Out Why Having an Online Store Makes Sense

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In 2022, shopping is no longer limited to physical brick-and-mortar stores. With advancement in modern technologies, availability of faster shipping options, and the recent pandemic that limited the movement of people, more and more customers are shopping online. While there are third-party channels like Amazon, Etsy, eBay and more that allow you to sell your products on their website, have you ever considered opening your own online store?

An online store dedicated to your brand and products can be tremendously beneficial as well as profitable. However, to reap the benefits of an online store, you must be familiar with how to create an online storefrom scratch. The process might sound too technical and troublesome but it’s quite simple and straightforward in fact. Read on to know more.

How to Open an Online Store?

Here’s a brief rundown of the process which you can follow to establish your very own store listed online and ready to serve customers. The best part about opening an online store is that you don’t need a lot of experience or technical knowledge and there is a plethora of tools available that are made specifically to help you with this journey. So, if you were wondering how to create an online store, follow these steps.

  • Step 1: Decide on your niche and what you will be offering the customers. Is it clothing, food items, appliances or something else?
  • Step 2: Choose whether you will house the products on your own or use a drop shipping supplier to take care of the shipping.
  • Step 3: Come up with a customer-friendly business name and register a domain name online for the website.
  • Step 4: Select and list the products that you will sell.
  • Step 5: Create the website for your brand. You can do it yourself, take help from an online store builder or even hire a developer.
  • Step 6: Get a sales tax ID since you’re now a business and would need to pay taxes on your products.
  • Step 7: Run marketing campaigns to get the products in front of your audience.

Benefits of an Online Store

Interested to know about the advantages of an online store and why it scores higher than a physical one? After all, most big brands have official stores and retail outlets for people to walk in, roam around, feel the products, and then make a purchase. While there’s no alternative to physical contact with the products, an online store can provide several other benefits.

  • Enhanced Communication with Customers: Online shopping allows brands to capture in-depth customer information like their purchase history, shortlisted products, email address, shopping preferences, and more. All this information enables you to connect with your customers better. Targeted campaigns, special discounts, and notifying the customers when their shortlisted product is back in stock can increase the chances of completing a sale successfully.
  • Better Shopping Experience: This is one of the key benefits of an online store. Shopping online gives a certain amount of freedom to customers that can’t be found in physical stores. There’s no salesperson following them around the store to make them uncomfortable and no queues for them to stand in and wait. All they need to do is browse through the website, select products they like, and buy them instantly with the click of a button. No fuss. No hassle. And no carrying things around the store.
  • Reduced Costs: One of the biggest reasons behind taking your business online is the reduction in costs. Sure, you will be paying server costs, website maintenance costs, infrastructure costs and such, but they will be far lower than paying rent for a commercial space, hiring employees, and maintaining the physical stock as well as the store. The amount spent on marketing online can be as minimal as you like.
  • Increased Market Access: This is another one of the top advantages of an online store. Selling products over the internet opens a wide range of possibilities that just isn’t possible with independent stores. Not only can you market to people worldwide, but third-party drop shipping and fulfilment companies like Amazon and eBay make it possible for the products to reach even far-flung customers. Setting up a shop is easy and can happen in just a matter of minutes.
  • Master of your Own Finances: Since you’re not partnering with third-party channels and selling products from your store, barring the cost of advertisement, shipping, and other overheads, all the revenue, as well as the profit, is yours to keep. While selling on Amazon or eBay might feel like a good side hustle at the beginning, the earnings will stagnate over time even if your business is growing. Getting away from any third-party agreement frees you from these shackles.
  • You Have the Final Say: Another online store benefit? You are not restricted to the selling metrics and strategies of other third-party companies. You have complete authority over every business decision like how it’s going to operate, sales and marketing strategies to generate leads, product presentation, pricing, and even the way the order is packaged and delivered. Customer service also becomes more streamlined and efficient.
  • Convenient payment system: In case of an online store, if you join hands with the right payment gateway solution provider, accepting and keeping track of payments will become a piece of cake. You will be able to offer your customers multiple payment modes too, including debit and credit cards, net banking, e-wallets and so on. No matter where a customer is located, the funds will be deposited in your account quickly. Sending invoices and reminders will also become easy, helping you to focus more on core business areas.

Wrapping Up

Building a business from scratch and running the same is not easy, be it online or offline. Each has its own difficulties and comes with its fair share of roadblocks, but you don’t create a multi-billion-dollar corporation piggybacking on another company. Plus, there are several benefits of an online store over an offline one, as you read above. And if yours is a growing business that aims to stay in the game for a long time, futureproofing the business is vital. The world is going global and physical borders are no longer a constraint for brands trying to reach their customers. So, now is the best time to go online.

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed
These two terms, ecommerce and digital marketing, are often used synonymously. In fact, they refer to two very different things. If you have an online business or work in one, it’s important to fully understand the differences.

Where it gets confusing is that ecommerce and digital marketing often go hand in hand. Both can also exist independently. For example, an ecommerce business could trade without digital marketing. Similarly, digital marketing could be used by a physical business.

Introducing Digital Marketing & Ecommerce 

Basically, ecommerce is the act of selling online. Whether that’s through a mobile app or an ecommerce site, it’s all ecommerce. Digital marketing, on the other hand, is the act of marketing through digital channels. Social media ads, email campaigns, and so on. They are similar and often complementary disciplines. Many businesses will make use of both. Almost all businesses will use one or the other at some point. 

What do we Mean by Ecommerce?

Let’s look at ecommerce in a little more depth. We’re talking about selling online or through an app. But we’re also talking about how you deliver the goods to your customers. Logistics is an important part of ecommerce. 

The latest figures show that in 2020 73% of UAE consumers were shopping more online than ever before. With an overall growth in ecommerce sales in the Middle East and North Africa of 19.8%.

This market is expected to grow to $49bn by 2025 . You can see from these figures alone why ecommerce is now a vital part of the global economy. In addition, the growth in ecommerce popularity has led to new opportunities for digital marketers

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed

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What is Digital Marketing?

Digital marketing means any form of marketing using digital means. That means ecommerce applications like banner ads and mobile notifications. But could also mean email campaigns, text adverts, social media ads, and more.  

The goal of digital marketing is much the same as any other marketing. You’re looking to promote your brand to the largest number of interested customers you can. Having a digital marketing strategy lets you keep the tone and message consistent across platforms. 

Here are some of the more popular examples of digital marketing today;

 

  • SEO 
  • Email Marketing & Automation
  • Viral Marketing
  • Social Media Marketing
  • Pay Per Click & Pay Per Conversion 
  • Affiliate Marketing
  • Native Advertising 
  • Image & Rep campaigns 
  • Point of Sale cross-promotion

 

Compared with traditional marketing, digital marketing has the advantage of accessibility, visibility, cost and popularity. Digital marketers should look at future trends. Think about questions like ‘how will mobile apps affect the future of digital marketing?’ 

Can Digital Marketing & Ecommerce Work Together?

The answer is a resounding yes. They can, and should, work together. It’s hard for any business to succeed without making use of digital marketing techniques..  

Digital Marketing & Ecommerce Hand-in-Hand

Take the example of a SaaS (Software as a Service) business. What is a SaaS company you ask? Well, they sell software, usually on a supported subscription model, to other businesses. They operate entirely online, with many using remote workforces.

 

This means there are no physical locations, no passing trade. Every customer has to be gained through direct or indirect marketing efforts. Digital marketing is a vitally important part of the marketing strategy for a business like this. The same is true for many ecommerce sites.

Digital Marketing & Ecommerce for Physical Retail

That doesn’t mean that digital marketing is only used by ecommerce businesses, though. Digital marketing should form an important part of any retailer’s marketing strategy too. Both large businesses and local businesses can boost revenues with digital marketing techniques.  

 

Hosting a blog with local interest pieces can help drive traffic to local companies. Sharing your successes, or the community work you do, on social media can have a big impact on reputation. Digital marketing goes beyond just putting your products in front of the customer. 

 

Remember those ecommerce stats we cited earlier? Well, research also tells us that many businesses in the Middle East reported that in 2020 a quarter of their sales were online. Moreover, 85% of MENA consumers have shopping apps installed on their phones. These figures are only growing year on year. 

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed

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As a physical retailer, ignoring the growth of these markets could seriously harm your business. Even your local customers will appreciate the opportunity to use a website or app if they choose to. 

This doesn’t mean you have to move away from your high-street roots. The key for a physical retailer is to make both experiences complimentary. Look at the potential for integrated customer data. 

This means that across your online and physical retail options, you make the customer experience consistent. A customer can fill a basket in your app and complete the transaction in-store, or vice-versa. 

This should also extend to your digital marketing efforts. If customers sign up for your newsletter, let them use the same email details etc. when they open a customer account. 

Does Ecommerce Need Digital Marketing to Succeed?

In short, yes. There are physical methods that will work well for online businesses, but digital marketing will make up the majority of your strategy. You can use consultants or account managers to promote your service. 

You could also look at billboards and local news advertising. The problem with many physical methods of advertising though is the cost. 

Some digital marketing approaches are also cost-intensive, it’s true. But the wealth of word-of-mouth advertising, available through low-cost social media campaigns, is too much for small businesses to ignore. 

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed

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Digital Marketing: Practical Benefits

Let’s look at some of the direct benefits of digital marketing that your business could make use of. Many of these techniques require data collection and analysis to get started. So, make sure your records management systems are able to keep up.

Targeted Marketing

This means directing your marketing at the groups who will respond to it best. Using customer demographic data, you can analyze habits and preferences to optimize your advertising. Having a flexible digital marketing strategy allows you to easily run several concurrent campaigns. You can target these at different groups to get the optimal response rates. 

This can be very useful if you’re launching a new product or service, too. Target the early adopters, the customers who are most interested in your products. These customers will generally be the most willing to give feedback when asked. 

You can integrate this with your quality assurance strategy to gain useful customer data before a general release. Then, make this a part of your qa metrics. This will help you gain a picture of how your customer base will respond to a new product or process. 

Personalization

Personalization is becoming an important brand differentiator. This is when a website or app will adjust the adverts, notifications, or the products it shows you based on your customer profile. We’ve all seen examples of it, some apps even do it whether we’re aware of it or not.  

According to a recent study of consumers in the Middle East, personalized emails have an open rate of 19.34% in comparison with 7.91% for broadcast emails. There is also a very visible increase in click rate when push notifications are personalized. This jumps from 5.58% to 21.12%

This shows that there is both huge potential in personalization, as well as high customer demand for it.  

Loyalty & Satisfaction

Then, it follows that servicing these demands will increase your customer satisfaction rates. Take a look at this case study on Ruroc, an online retailer. They noticed that engaged customers who arrived via paid ads would often bounce from product detail pages.  

Simply by adding a “similar styles” viewer to their app for paid ad viewers saw a huge turnaround. Thanks to this one little touch of personalization, they saw the following changes:

 

  • 19% decrease in bounce rate.
  • 67% increase in conversion rate.
  • 25% increase in average order value.
  • 109% increase in average visit value.  

Ecommerce vs Digital Marketing: A Comparative Guide to Help Your Business Succeed

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Ecommerce: How to Drive Success

So, let’s talk about how we can use these digital marketing techniques in ecommerce for a more successful business. 

Personalized Shopping

Use the data you collect from your customers to feedback and improve their shopping experience. Often, your customer’s habits will tell you more about them than more traditional marketing questionnaires. 

You might implement push notifications for your mobile app, for example. You could personalize these based on your customers’ shopping habits. Give them personal deals on products that are relevant to them. This way, you’ll see increased uptake rates. This will have a knock-on effect, increasing your average customer lifetime value. 

Optimization

Optimizing your platform is important, whether you’re operating an ecommerce site or app. 71% of UAE ecommerce sites have a bounce rate of 50%. One of the main reasons behind this is if a website or app takes more than three seconds to load. The longer the load times, the higher the bounce rate. Make sure you optimize for mobile and desktop. 

QA testing should form an important part of your optimization. Testing is very important to a successful app or ecommerce site. Put in place a QA testing strategy and come up with a qa test plan template.

Customer Experience

Customer experience is everything in online retail. According to research, 65% of consumers in the Middle East seek curated experiences. This encompasses all parts of the buyer’s journey. Not just the experience of buying itself, which should be fast and simple. You should also think about the after-sales support, customer service, and reliable delivery. 

Final Thoughts

Keep your customer experience in mind, whether you’re pursuing ecommerce, digital marketing, or both. Keep in mind that an integrated digital marketing strategy needs to include all parts of your business. From your sales reps to your remote contact center agents.

 

Kate PriestmanKate Priestman – Head Of Marketing, Global App Testing
Kate Priestman is the Head of Marketing at Global App Testing, a trusted and leading end-to-end functional testing solution for QA challenges. Kate has over 8 years of experience in the field of marketing, helping brands achieve exceptional growth and mobile compatibility testing, She has extensive knowledge on brand development, lead and demand generation, and marketing strategy — driving business impact at its best. Kate has also written great articles for sites such as angelhack and CBNation. You can connect with her on LinkedIn.

Your Complete Handbook to Ecommerce Logistics as a Startup

First things first, step back and congratulate yourself. You’ve done what, at times, seemed impossible. You’ve turned your idea into a successful ecommerce business with customers eagerly awaiting your product. This is where ecommerce logistics come into play.

Your Complete Handbook to Ecommerce Logistics as a Startup

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As the difference between physical store and online store shopping grows smaller, your logistics infrastructure needs to be first-rate. With companies such as Amazon and Bosta offering exceptional delivery, consumers have become accustomed to this type of service. 

It’s up to you to match this service as best as possible.

The journey of your inventory starts with the manufacturer and ends in your customers’ hands. 

To achieve a smooth transaction, you need to consider your supply chain efficiency. Below are some key steps that you should explore within your ecommerce delivery.

Demand planning

Startups don’t have the luxury of planning their inventory on past performance. Instead, you have to track what‘s at your fingertips, such as your online presence and website traffic. 

Planning for upcoming seasonal events means you can anticipate what orders will be popular. Also, engaging with your social media hashtags and shares will give you an accurate overview as well.

Visibility and managing your inventory

Taking stock of your inventory with your manufacturing warehouse promotes customer service. There’s nothing more frustrating to a prospective customer than ordering a product that is, in fact, out of stock.

Established companies have contact center best practices available to handle such issues. Startups aren’t as fortunate, with only word-of-mouth at their disposal. So a positive customer experience can go a long way in terms of engagement. 

That’s why providing customers with accurate communication is essential to growth.

Free shipping

In a recent study, 90% of consumers would shop online more if free shipping were available. If you provide this option, you remove the one advantage that in-store shopping has over online shopping. 

Problems arise due to cost efficiency, as offering free shipping can interfere with profits. You need to consider this cost when pricing your products.

Managing returns

Monitoring the number of return requests offers you a real-time analysis of product satisfaction. It also awards you the opportunity to conduct damage control on products that may hinder your brand. 

In short…

By following this guide, you take action to help your company to grow. By promoting customer satisfaction, you’re also promoting customer retention. Logistics is an important step in your customer’s journey, so let’s ensure it’s an easy trip.

Grace Lau
Grace Lau – Director of Growth Content, Dialpad
Grace Lau is the Director of Growth Content at Dialpad , an AI-powered cloud communication platform for better and easier team collaboration. She has over 10 years of experience in content writing and strategy. Currently, she is responsible for leading branded and editorial content strategies, partnering with SEO and Ops teams to build and nurture content. Grace Lau also published articles for domains such as Whatfix and VMblog. Here is her LinkedIn.

Guide to Automating Your Invoice Processing For Easy Cashflow

Guide to Automating Your Invoice Processing For Easy Cashflow
Processing invoices, especially when your business is starting to grow, can be painstaking. 

When performing the task manually, it can be easy to make mistakes which leads to delayed payments and upsets in business relationships.

Follow this guide to improve your business cash flow and develop reliability when it comes to invoicing for your business. 

Invoice Types

There are two main types of invoicing available to businesses. These are:

  • Before payment (accounts receivable or payable)
  • After payment (receipts and copies of transactions for record-keeping)

Before Payment

This is a common approach for many companies. These invoices detail the services or products which were provided and the amount they cost. 

It is essentially a request for payment within a period and needs to be completed by the relevant people before the deadline. 

Manually creating before-payment invoices can create issues when it comes to consistency and efficiency. By automating you can:

  • Automatically invoice clients;
  • Register invoices for your accounting department to see outstanding payments;
  • Receive reminders when payments are due.

All of these processes help to improve productivity so if you use them before payment invoicing, you can benefit greatly from automation.

After Payment

This process acts as a receipt for a client. It acknowledges that payment has been made and provides proof for bookkeeping purposes. 

A common area for these forms of invoices is online stores where you receive a receipt once you have purchased an item.

For small and growing businesses, creating manual after payment invoices whenever something is purchased from your web store is time-consuming and costly. 

Here you can automate: customers receiving copies of their invoices; making exact copies of invoices automatically for record-keeping and creating invoices instantly to accelerate the payment process.

Why Wait?

Guide to Automating Your Invoice Processing For Easy Cashflow
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Let’s for a moment consider a hypothetical new business start-up. 

The imaginary owners want to create a great external customer service experience, so they look at articles on how to start a contact center. They manage invoice payments manually for the first year of their company’s existence as there aren’t too many to manage, but suddenly they begin to grow exponentially due to the success of using vanity phone numbers in a marketing campaign. 

They are now stuck. Their company is wasting precious time and money creating invoices that have errors. Their clients are getting confused and feel misguided and relationships are fracturing. The company chooses to switch to automated payment systems but loses money during the transitional period. 

If the company had switched to automatic invoice processing before their sudden growth, they would be able to scale up payments and keep up with demand so consider doing this immediately. 

What is automated Invoicing?

Automated invoicing is the process of making a historically manual job automated through computer systems and software. 

The aim is to make an arduous and error-filled practice straightforward, efficient, and accurate. When you have your processes set up, scheduling payments, sending receipts, and creating invoices will be simple and means cash flow remains uninterrupted. 

It is important to recognize that the options for businesses are wide. However, some companies strive to make the process of moving from manual to automated invoicing as seamless and trouble-free as possible. 

One example of these companies that provide brilliant software is Paytabs. They have video tutorials available to those just getting started and have great customer communication channels to make sure your needs are met continuously. 

Benefits

So why move to automated invoicing? 

Guide to Automating Your Invoice Processing For Easy Cashflow
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  1. You reduce your costs vastly. Paying employees to manually create invoices is expensive, especially when they make a mistake and have to go through the process again to make sure it’s right. Furthermore, an automated service is trustworthy, so senior officers and managers won’t need to review every payment before it’s sent. 
  2. It reduces errors. Automation means you don’t need to worry about human error. When people make mistakes it can upset clients and fracture relationships, much like having out of stock products, with important vendors or clients. Ditching manual means you won’t have to worry, as the software is created to serve a specific purpose.
  3. Faster turnaround times. For all businesses, making your invoices automatic means you can make payments quickly and it minimizes the amount of admin. When money moves quickly and reliably, companies are happier. 
  4. Employees have the time to focus on higher-impact jobs. Without the need to process invoices, they can be asked to perform jobs that are more valuable to your company such as performing affiliate program monitoring.

What does it involve?

With all the software available to businesses nowadays it’s clear that automation is the way to go to improve efficiency and reduce costs. More people than ever are involved with creating new software, IoT app development, and websites. So where do you start?

Create Your Forms

The first thing you need to do is decide on the program which suits your business approach and requirements.

It is important to consider the needs of your company and the information required to process payments properly. Modern software allows you to use digital signatures, or provide simple drop-down menus with lists of clients or services to make payments even smoother. 

Once you have made this decision, you need to use pre-built templates or create your invoicing form. Creating a form provides clarity to users and uniformity across all of your payments. This is often instantaneous, meaning you can use the forms straight away. 

In the past altering forms manually would be challenging but modern solutions mean you don’t need to be a coding expert to make complex processes a reality. The automation and control you can exert, when it comes to creating your forms through appropriate software, is often very user-friendly and truly customizable. 

Consider Your Approval Workflow

Regardless of your payment process, more valuable invoices need to be sent to senior officers or company presidents for approval. Again, these processes are easily managed when it comes to software. 

Imagine that your company requires that all invoices over $10,000 are sent to the senior officer before processing. 

Modern software can be employed to ensure that this process happens every single time without error. 

This means that managers are only seeing the payments which they are required to under company policy thus saving time and improving efficiency.

Integrate 

It is important to consider how integration between your new and old systems will look. It is key that your payment records are kept up-to-date for bookkeeping. For example, when it comes to reviewing company profits or gathering information regarding a payment discrepancy in the future. 

This is where considering how you are going to ensure a seamless transition between manual and automated systems is vital.

Much automated software comes with the ability to integrate with current financial management systems.

Generally, companies are likely to use an ERP (enterprise resource planning) system for their finances, and manually entering order numbers into databases is time-consuming and costly. Find software that fulfills this process automatically and works well with the methods you currently employ.

Next steps

Guide to Automating Your Invoice Processing For Easy Cashflow
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Training

Whilst the initial set up of an automated invoicing software comes with difficulties, over longer periods you will find that the time previously spent on completing invoices, can be used for other important parts of your business. Use a time management tool to reap the benefits of spare moments.

Using a new piece of software can come as a challenge to many companies. Your staff must be trained to use new programs. You should have an approach laid out in your IT strategy to help employees manage and understand new systems.

The ultimate aim is to make the payment process easier and making sure everyone understands produces fluidity in sharing information and issues. 

Use and Review

Having an initial testing phase is important so make sure you do that immediately. 

However, after some time using the new invoicing software, your company must be reflective in regards to its effectiveness. 

Asking companies who have processed payments through your new approach for feedback can further develop your use of the systems. 

Gaps and difficulties can be challenging to overcome when filling out invoices manually. However, using automated software means you can quickly customize and change your invoicing forms and process to adhere to changing needs, so listen to feedback from clients and employees. 

Final Thoughts

For those who process a few invoices per quarter, or those doing hundreds a day, switching to automation contributes to great efficiency and reduces costs swiftly. When used correctly, it can alter the way your business operates and free up time for employees.It is important when considering moving to automation, that you find software that is effective for your business. To save time, don’t scour the internet, start with PayTabs, take a look at the great services they offer, and watch a few videos. You may find that they provide exactly what you need clearly.

Jessica Day
Jessica Day – Senior Director, Marketing Strategy, Dialpad
Jessica Day is the Senior Director for Marketing Strategy at Dialpad, a modern business hosted IP PBX communications platform that takes every kind of conversation to the next level—turning conversations into opportunities. Jessica is an expert in collaborating with multifunctional teams to execute and optimize marketing efforts, for both company and client campaigns. Here is her LinkedIn. She has also written content for Pretty Links and Kanbanize.

3DS 2.0

OTPs and static passwords are costing you sales

Cart abandonment is an 18 billion USD problem for merchants worldwide. A staggering  7 out of 10 shoppers abandon their carts, making it a major worry for e-commerce businesses. Among mobile users, it’s even higher; 85.65%.

A study in the US found that 18% of shoppers abandoned their cart because checkout is too complex. Another 17% did so because they were worried about their credit card information safety.

Merchants need to offer ease of check out and peace of mind to their customers if they are to address the problem. In MENA, until now, payment gateway providers only offered payment authentication via static passwords and One Time Passwords (OTP/OTPs), which cause high friction and security worries among shoppers.

PayTabs brings you the new risk-based authentication technology, 3DS 2.0, a solution to these problems provided by EMVCo, a global regulatory body for payment safety. PayTabs is among the first companies in the world to become 3DS 2.0 compliant and the very first in Egypt.

What is 3DS 2.0?

 3 Domain Secure 2.0 (3DS 2.0) is a new security protocol for authenticating transactions where the cardholder is not physically present.

3DS 2.0 is a complete shift from 3 Domain Secure 1.0 (3DS 1.0), introduced in 1999. Although 1.0 to 2.0 sounds like an upgrade, the two protocols work very differently.

How 3DS 1.0 works

3DS 1.0, shares information and authorizes payments via static passwords and OTPs. It soon proved to be not good enough, as it was,

  • High levels of friction
  • Risk due to OTP redirects and static passwords
  • Incompatible with mobile
  • Incompatible with digital wallets

The challenges with 3DS 1.0 persisted, despite the new versions that were released. Buyers kept abandoning carts and merchants kept losing sales. Enter 3DS 2.0.

How 3DS 2.0 works

 The key difference between the two protocols is how they authenticate transactions. 3DS 1.0 uses Two-Factor Authentication (2FA). 3DS 2.0 uses Risk-based authentication.

2FA is a static process and does not make any judgements on the transaction risk involved. Risk-based authentication is dynamic and makes assessments based on various factors. The factors include,

  • Transaction amount
  • Number of transactions within a timeframe
  • Cumulative payment amount within a timeframe
  • Merchant and country

Risk-based authentication uses biometric data and tokens. A fingerprint is much faster, easier, and secure than any password. Payments Journal has reported a case study where checkout times were reduced by 85% and cart abandonment rates were reduced by 70% after 3DS 2.0 was implemented.

Differences between 3DS 1.0 and 3DS 2.0

  3DS 1.0 3DS 2.0
Support environment Browsers only Browsers, native mobile integration, supports wallets
Risk judgement None used Risk-based authentication used
Data safety Not good. Redirects to new web pages expose data. No redirects, therefore safe and effective.
Authentication procedure 2FA Risk-based authentication
Authentication is done via Dynamic OTPs and static passwords Biometrics such as fingerprints, voice, palm

How to switch to 3DS 2.0?

 Visa will discontinue support for 3DS 1.0 after October 2022 as the world moves to 3DS 2.0.

PayTabs will help all customers who wish to transition do so for free. Your customers will benefit from the added security and better UX across their browsers, apps, and devices. You’ll be able to enjoy better conversions and sales at no extra cost.

Our tech support will make the switch as seamless as possible for you.

Be one of the first merchants in MENA to integrate 3DS 2.0 security

Show your customers how much you care about their safety and experience. Get an edge over your competitors.

Contact us today and we will help you transition within a couple of days  to 3DS 2.0.

 

Kasun Pathirage
– Kasun Pathirage is an expert freelance content writer for B2B fintech and SaaS brands.
Learn more about his work via his website: verbauream.com.