By Kate Morris
The founder of leading online e-tailer Adore Beauty tells us that as a consumer, she loves any advance in technology that makes life easier. “As an online retailer, I’m an even bigger fan of making life easier for my customers - particularly when it comes to helping them pay!”
Just as Australian consumers have embraced Paypass tap-and-go for instore payments, there are also some great new payment technologies that are smoothing the way for seamless online transactions.
An Australian business that’s just launched on the ASX, Afterpay enables online retailers to offer an attractive alternative to the old-fashioned lay-by: shop now, but pay over four interest-free fortnightly instalments. The retailer receives settlement upfront (minus a fee), so the customer’s order can be shipped immediately. We’ve just launched Afterpay on Adore Beauty and are already noticing a big uptake by customers: in addition, the customers who use Afterpay are spending more than those who don’t. Afterpay is particularly popular for big-ticket items such as hair straighteners.
A payment service owned by Chinese retail behemoth Alibaba, Alipay is used by most Chinese consumers instead of credit cards - think the Chinese version of PayPal. Alipay has 400 million registered users, and boasts nearly 80% share of the China mobile payment market by total transaction value. We’re adding Alipay to Adore Beauty’s suite of payment options to make things easier for our local Chinese customers who prefer Alipay to credit card.
Many customers do still prefer to use a credit card, however typing in a 16-digit number is not exactly convenient or easy on a mobile device - and particularly not in public. I know I don’t fancy having to pull my credit card out on the train! Tokenised payments alleviate some of the inconvenience of typing in a card number, by enabling logged-in users to securely ‘save’ a credit card number for future purchases. The card details are saved with the secure payment provider, not the retailer, thus minimising any potential security risk.
While not exactly new, PayPal has become integral to the online shopping experience in Australia - particularly on mobile devices, where we find that 65% of Adore Beauty mobile shoppers prefer to use PayPal. Recent feature additions such as persistent login (so the user stays logged into PayPal on their device, even across different shopping sites) help customers complete their order in just a couple of taps.