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Cart abandonment rates and 3D Secure

Picture yourself in the supermarket, wandering up and down the aisles merrily filling your trolley with the things you need and probably a few things you don’t. You finish your shopping and head for the checkout. Upon seeing the queues you change your mind, deciding that actually, you do not want to wait and instead upturn your trolley in the middle of the aisle and walk out of the store in search of a better, faster shopping experience somewhere else.

This may sound like a rather drastic scenario, but it is happening on mobile phones every day. People are becoming frustrated with their mobile shopping experience and are abandoning their full shopping carts before completing their purchase. As much as 80% of all shopping carts on smartphones were abandoned during the 2014 holiday season in the UK. This is known as Cart Abandonment.

3d secure the cart abandonment killer - judo payments

What is causing these people to abandon their carts on mobile?

In previous posts we have covered UI best practice for mobile retail sites and looked at how loading times ruin user experience. Encountering a badly designed UI or having to watch the ‘spinny wheel’ whilst the page loads are certainly two areas of mobile shopping that cause friction leading to cart abandonment. And then there is the dinosaur that is 3D Secure.

3D Secure is an additional level of security and authentication for credit and debit card transactions occurring online, it ties the financial transaction of a customer to an online authentication process in the form of a password which confirms the customer has given their consent for the transaction to take place.

Here at judo we’ve been working with our clients to run some A-B testing on customer behaviour when approaching checkouts with and without 3D-secure being implemented.

The data shows us that customers who are presented with the 3D Secure screen when making a payment are five times less likely to go through with the payment than those who do not see the 3D Secure page. Only 14% of our sample actually persisted with the transaction when 3D Secure was enabled.Successful vs Declined payments for merchants not making customers use 3D secure - judo payments

In our sample data of customers who are not made to use 3D Secure alongside our payment platform, we see a declined payment rate of 6.6%.

Successful vs Declined payments for merchants using 3D secure - judo payments

Comparing that to our clients that had to use 3D Secure, we see the declined payment rate almost triple to 17.4%, nearly one in five transactions being declined.
So the brave 14% of our sample who persevered through the non mobile-responsive 3D Secure page to complete their transaction, ended up being three times more likely to encounter a declined transaction than those where 3D Secure is not present.

For mobile commerce to reach its heady potential companies need to make the payment process as frictionless as possible. Mobile will always suffer from occasionally intermittent data signal or the issues surrounding small screens and big fingers. Making a payment on a mobile is hard enough, people do not need another hurdle in the mobile payments procedure. There are alternative methods of securing payments, built especially for a frictionless mobile experience out there. Companies no longer have to rely on 3D Secure.

About Judopay · Judopay simplifies in-app payments, enable frictionless checkouts and intelligently prevents fraud for leading companies globally. Our payments and mobile experts help guide businesses and their development partners to create best in class apps to make paying faster, easier and more secure. Founded by serial financial technology entrepreneurs in 2012, Judopay is backed by leading venture investors and supported by banking and card scheme partners to offer in-app payments that are simple, frictionless and protected.

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