As more consumers engage in eCommerce and mobile payments, businesses and payment networks are focusing on improving the customer experience by making transactions easier, faster and safer. But even with these improvements, checkout operations continue to cause the most friction during a purchase. The longer it takes for a customer to make a purchase, the more frustrated they become which can lead to abandoned shopping carts and a loss in potential profit.
Fortunately, emerging payments technologies are helping businesses create frictionless, seamless and safe transactions. One such standard is EMVCo®’s Secure Remote Commerce (SRC), which aims to streamline the checkout process for online shoppers.
“Secure Remote Commerce introduces a simplified, secure and consistent consumer checkout process across the web and card brands, thereby making the online purchasing experience less complex for consumers,” says Robin Reodica, product management executive for Bank of America Merchant Services.
Once a business implements Secure Remote Commerce, a consumer can buy different products and services through a web browser or mobile app and receive the same experience at checkout — a simplified, consistent and secure digital payment transaction.
Consumers will no longer will have to re-key basic information such as shipping and billing addresses into different sites. Once a shopper sets up their Secure Remote Commerce credentials, their contact information and payment card data will be held in a single, secure system that is available for them to use as they peruse the internet and make a purchase.
During the checkout process, a customer will be able to choose which payment method to use, and Secure Remote Commerce will quickly authenticate that payment.
“The longer it takes for a customer to make a purchase,
the more frustrated they become.”
In addition to simplifying the purchase experience for the customer, Secure Remote Commerce also eases the burden for businesses. For years, companies have had to manage different rules and integration standards for each major credit card network’s preferred checkout mechanism. With Secure Remote Commerce, businesses can instead focus on integrating just one method that can support all of those networks.
With card-not-present fraud continuing to rise, security and fraud prevention are critical components of the Secure Remote Commerce framework. Through tokenization and dynamic data, a consumer’s account number would be removed from the payment process.
While Secure Remote Commerce is a relatively new standard, major card networks have already expressed support — in fact, American Express® and Discover® plan to implement Secure Remote Commerce by the end of 2019.1 But, businesses must watch Secure Remote Commerce’s evolution closely to ensure they understand its strategic, operational and financial impacts.
“Companies need to be aware of the potential benefits, system impacts and operational risks that Secure Remote Commerce might introduce in the context of their own business,” says Reodica.
For example, while greater use of tokenization can help protect against fraud, it may also affect data large companies currently use in some of the customer-facing parts of their operations, such as returns and order tracking. Taking stock of the potential upsides and downsides of adopting the Secure Remote Commerce standard can help businesses sort through their options regarding how and when they implement any necessary changes.
“Secure Remote Commerce is an evolution in the eCommerce channel driven by the need for a better customer experience in a secured environment to decrease checkout abandonment,” says Reodica. “Businesses need to assess the Secure Remote Commerce benefits and impacts against their business goals and prioritize their efforts accordingly.”