Payment is at the heart of strategic concerns for retail and e-commerce businesses. Previously seen as the final hurdle before completing a purchase, it has taken on a new dimension in recent years: that of a commercial lever at the crossroads of numerous challenges such as conversion, profit margins, and fraud.
In episode #193 of The Digital Doers podcast, Matthieu Vermot, Managing Director (Global Merchants) at Payplug and Lucas Quinio, Head of Payment at BUT-Conforama, joined host Cyril Artur Du Plessis to share their experiences on the mechanisms of an effective payment strategy.
Discover the summary of their discussion now!
Adapting to a constantly changing market
As Antoine Grimaud, CEO of Payplug, pointed out in the international media The Paypers, payments in Europe have become increasingly complex in recent years, driven by several factors:
- Regulatory changes, notably the implementation of the Payment Services Directive 2 (PSD2), which has introduced a paradigm shift, as the decision on whether or not to trigger strong authentication now rests with issuers.
- Technological breakthroughs (Buy Now Pay Later, mobile payment, Tap to Pay) which are leading retailers to rethink their online and in-store purchasing journeys.
- The multiplication of points of contact between brands and their customers, who increasingly seek more flexibility and fluidity in their purchasing experiences.
- The rise of local payment methods, such as Satispay in Italy, Bancontact in Belgium and iDEAL in the Netherlands.
These dynamics are pushing major retail players to develop a genuine payment strategy to meet their customers’ expectations and maximise conversion.
Setting payment targets: from SLA to acceptance rate
Historically, corporate payment objectives were IT-related goals tied to the SLA (Service-level Agreement), focusing primarily on platform availability.
With the proliferation of payment methods and the emergence of specialised local players like Payplug, retailers are now relying on more commercial metrics to assess the performance of their payments, the main one being the acceptance rate.
We’ve found that even a small increase in our acceptance rate can translate into millions of euros in additional revenue every year.
Lucas Quinio, Head of Payment / BUT-Conforama
BUT-Conforama currently has a 95% acceptance rate, a figure that reflects their commitment to optimising the payment chain in depth.
Integrating the payment function at the heart of the company’s strategy
Lucas Quinio estimates that 100% of CAC 40 companies now have at least one in-house payment specialist, whether Payment Manager or Head of Payment, as they typically offer about thirty different payment methods.
For Lucas Quinio, the role of Head of Payment revolves around three pillars:
- Create links with the various business functions involved in payment strategy, including marketing, IT and legal teams;
- Manage the company's payment methods across all channels, adapting the strategy to local conditions, innovations, and regulatory changes;
- Implement tools to combat fraud, an aspect that goes hand in hand with payment.
Because of its strategic dimension, payment is now at the crossroads of services within major groups.
Optimising every stage of the payment chain
The payment service provider (PSP) plays a crucial role in optimising the acceptance of payments processed on e-commerce sites.
“What makes us special at Payplug is that we have in-depth knowledge of the payment chain", explains Matthieu Vermot. "We are both PSP and acquirer, and we have a special relationship with Groupe BPCE, the leading issuer of Visa cards in continental Europe.”
With this unique position in the market, Payplug offers merchants solutions to optimise the performance of their payments at every stage of the chain:
- Checkout: local payment methods, payment facilities, payment page integration templates optimised for all devices;
- Authentication: support and customised rule engine to combat fraud and manage TRA exemptions;
- Authorisation: Fastpass and Safe'R by CB, complementary programmes to maximise frictionless journeys;
- Post-transaction: reducing and disputing chargebacks.
We aim to maintain a payment acceptance rate of over 98% while guaranteeing maximum security for our customers.
Matthieu Vermot, Managing Director Global Merchants / Payplug
Going global while adapting to local specificities
Large groups operating in multiple countries used to use a single payment partner to manage all their payment volumes. Today, they rely instead on several local acquirers to offer payment methods tailored to their target markets and boost their acceptance rate.
Lucas Quinio explains: "When you are an international company like BUT-Conforama, you must take into account local specificities: in Belgium, Bancontact is the most widely used payment method at 80% ; in France, it's CB; in Germany, you have to offer bank transfers. [...] For each locality, we work with different players. In France, for example, Payplug is extremely efficient".
However, a multi-PSP strategy can be complex to implement. That's why e-merchants are turning to orchestration platforms, which aggregate data from different payment partners through a single entry point.
Payplug facilitates access to payment performance by offering different integration models – via API or orchestrators – depending on the merchant’s choice.
Ready to make the most of your payment strategy?
The testimonies of Lucas Quinio and Matthieu Vermot offer valuable insights into the changing practices and technologies shaping the payments industry. The focus is on the need to adapt solutions to customer needs while controlling risk and optimising performance to ensure the best possible user experience.
If you have any questions about how Payplug can help you maximise your payment performance, our teams are ready to assist:
