Modern consumers are looking for and using a variety of fast online payment options. According to studies, 70% of users abandon their cart if the checkout process is complicated or takes too long. At Stenik, we are committed to implementing efficient and reliable payment solutions in our clients' online stores to ensure maximum convenience for end-users when completing their orders. Our goal is to integrate payment methods directly into the online store's checkout without the user leaving the site to finalize the payment. This is important because it provides a faster and easier process that encourages customers to complete their orders.
For the needs of our client Uwear.bg, we integrated Open Banking directly into the modified Magento checkout developed by Stenik. The checkout combines multiple payment methods in a single step, without compromising the user experience (UX).
How does Open Banking payment work in the Magento store?
In the following sections, we will describe how the payment process works before and after the modification we made to the checkout.
Initially, we integrated the Paysera payment system into Magento, which functioned as follows:
Standard payment before the modification
1. The user follows the standard shopping process and, upon completing an order in the checkout, at the payment step, they select the option "Pay with Paysera."
2. The user is redirected to the Paysera portal, where they can choose from various payment options such as card payments, digital wallets (Revolut, Google Pay, Apple Pay), e-banking, mobile banking, and others.
3. After confirming the payment, the user is automatically redirected back to the online store.
Although the process worked, it required an additional step – redirecting to the Paysera portal. This could confuse the user as multiple options appeared at once: banks, digital wallets, card payments, and others, requiring the user to scroll through to make a choice.
To provide even more convenience, the merchant decided to bring the Open Banking option directly into the checkout to optimize the user experience by removing unnecessary steps.
Following our approach of customizing the solutions our clients use for better UX and optimized checkout, the Stenik team visualized Open Banking as a separate payment method directly in the Magento store's checkout, alongside the other payment methods of the merchant. Here's how the updated functionality works:
Open Banking directly in the store's checkout
1. Upon completing the order, the user directly selects the Open Banking payment option in the checkout.
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2. The user sees the Paysera interface, where they can select their bank or digital wallet. They access the mobile app of their bank or digital wallet, grant access permission, and confirm the pre-loaded payment amount. The transaction is confirmed via biometric data (face recognition, fingerprint) or PIN. After successful payment, the customer is automatically returned to the online store where they see the order confirmation.
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Benefits of the new modification for Uwear.bg customers
- Faster payments: Reduced number of steps in the checkout.
- Convenience: Direct access to mobile banking.
- Flexibility: Meets modern consumer needs.
What is Open Banking?
Open Banking democratizes financial services by providing a secure way to share consumer data between banks and other financial and non-financial organizations – online stores, commercial companies, and retailers. This is achieved through standardized application programming interfaces (APIs) that facilitate the exchange of information between various financial service providers. With the user's consent, their banking data can be securely shared with third parties – banks, fintech companies, and other institutions. Open Banking also enables payments to be initiated directly from the users' bank accounts without the need to enter banking card details. This makes the process faster, more convenient, and secure.
End customers appreciate the convenience and flexibility that digital payments bring during shopping. A simplified payment process leads to fewer abandoned carts and higher conversion rates. In response to consumer needs, every merchant should provide various payment methods from which customers can choose.
Would you like to add this payment option to your online store?
If you would like a consultation regarding the implementation of Open Banking payment in your online store's checkout, feel free to contact us. Our support department and your personal Project Manager are available to discuss opportunities to improve the shopping process in your e-store.
You can also explore other articles on our blog to learn about other implementations we’ve made for our clients' needs.
