Why Pay by Bank fits luxury retail like a glove
In the world of luxury retail, the shift to online shopping presents both challenges and opportunities. Pay by Bank offers a solution that not only addresses the potentially higher transaction fees and fraud risks but also enhances the customer experience with a more seamless checkout process. Discover how this innovative payment method could transform the ecommerce landscape for luxury brands.
Pay by Bank offers a seamless and efficient checkout process, reducing data entry and providing a smoother shopping experience, which is potentially crucial for luxury customers.
With Pay by Bank, high-value transactions could have reduced fees, directly enhancing profit margins for luxury retailers.
Pay by Bank also incorporates Strong Customer Authentication (SCA) on transactions, reducing the risk of fraud.
The luxury retail industry is known for its commitment to excellence, quality, and an unparalleled customer experience. However, as the world increasingly shifts towards online shopping, luxury retailers are facing some challenges. Transaction fees, the risk of fraud, and the need for a more seamless customer journey are critical issues that can impact both profitability and brand reputation. This is where Pay by Bank emerges as a solution, addressing these challenges head-on.
An enhanced customer experience
A seamless and efficient checkout process is crucial for maintaining the exacting standards of the luxury shopping experience. Pay by Bank offers a more frictionless checkout that can reduce the amount of data entry required (e.g. entering numbers), potentially reducing the time and effort needed to complete a purchase.
Tink's authentication flows are only two clicks and eight seconds on average, resulting in a smoother and more enjoyable shopping experience – which is particularly important for luxury customers who expect speed and a best-in-class shopping experience.
In addition to providing a bespoke branded payment method, Pay by Bank can also improve the customer experience of luxury retailers thanks to fast settlements. Since money moves directly from the customer’s bank account to the retailer, payments settle in real-time, meaning retailers can start processing payments quickly – leading to faster shipping times and happier customers.
Customisable payment flows
Beyond a smoother checkout experience, Pay by Bank allows luxury brands to keep their unique identity and enhance their customer experience by customising their checkout flows. Thanks to Pay by Bank’s nature as a customisable payment method, brands can keep their logo, colours, and overall aesthetic front and centre during the payment process, ensuring a cohesive and branded shopping experience. Doing this could help reduce friction and increase conversion rates.
Cutting costs, not corners
In the luxury goods sector, transaction fees for high-value purchases can be substantial, sometimes involving multiple layers. Pay by Bank can offer a low-cost alternative by offering a fixed cost per transaction, with payments transferred directly between accounts. If luxury businesses are able to reduce the fees they pay, this has the potential to enhance profit margins, presenting an opportunity to reinvest in the business and deliver on the high service–level demands of their customers.
Ensuring more secure transactions with Strong Customer Authentication
Research from Juniper predicts that global fraud loss could be as high as $91 billion by 2028 if left unchecked – a daunting figure for the luxury retail industry, whose high-value transactions can be a target for fraudsters. Fortunately, Pay by Bank incorporates Strong Customer Authentication (SCA) on transactions, ensuring that payments are authorised and verified by the customer’s bank. This robust yet seamless authentication process reduces the risk of unauthorised transactions and protects sensitive customer data.
The future of luxury ecommerce
Pay by Bank is not just another payment method. It is a tool that addresses some of the critical challenges faced by luxury retailers in the ecommerce space. By reducing costs, lowering fraud risks, and enabling a superior customer experience, Pay by Bank can help luxury brands optimise their business when implemented into their payments stack.
Contact Tink today to learn more about how Pay by Bank can elevate your luxury brand.
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