Pioneer and European leader in online destocking after having created the concept of private online sales in 2001, Veepee continues today to write its success story. On the strength of its 66 million members, the Group realises a turnover greater than 3 billion euros in 10 countries in Europe and South America*. With over 100,000 transactions per day*, controlling online payment is essential to maintain its performance.
Sylvain Gignoux, Veepee’s Payment Manager, sums up its ambition: offering a smooth and secure payment experience to its members, while limiting fraud. This happens via two prime levers: optimising the payment page and limiting friction during authentication to improve conversion. Find out how Payplug has played a key role in enhancing its payment performance.
The payment page mirrors local habits
Veepee customises and adapts its checkout pages, to offer members the most popular and favourable payment methods in terms of conversion, user experience and merchant cost. “When a member is using an Apple device, we highlight Apple Pay on the checkout page because it offers the best user experience and a high authorisation rate for the cost of a traditional card transaction”, Sylvain Gignoux explains. “Then we adapt to the payment culture of each country to which we expand. In Germany, for example, where bank cards are less popular, we put more emphasis on PayPal. In Belgium, it's more on Bancontact, and on iDeal in the Netherlands”.
In all cases, as well as international and local payment modes, Veepee offers electronic portfolio for one-click payments. Another key element in the payment ecosystem of Veepee is security. The entire transactional path is PCI DSS (Payment Card Industry Data Security Standard) compliant. And the strategy is paying off, since in October 2022, Veepee received the "Payment Hero Award" in Belgium from SafeShops.be for "the transparency, ease of payment and diversity of payment methods offered to members".
A frictionless strategy to maximise conversion
The application of Payment Services Directive 2 (referred to as the DSP2) continues to have direct impact on the performance of e-commerce websites. This has been even more true since October 2022 and the end of the 3-D Secure v1 (referred to as the 3DS-1) protocol: “In mid-October, we observed a decline in the acceptance rate of online payments across all card schemes”, commented Nathan Dondey, Head of Customer Success at Payplug. “The first challenge is the same for all our merchants: earn acceptance points in order to gain in performance.” Sylvain Gignoux confirmed this: “For Veepee, 5 frictionless authentication points earned equal 1 extra acceptance point*.” The frictionless authentication strategy has been clearly defined and rests on two pillars:
Highly qualified scoring
Veepee’s anti-fraud expert team regularly reviews and adapts its internal scoring rules to have the best balance between strong authentication and frictionless, in particular according to the timely sales that are renewed every day. Before the payment stage, each transaction’s risk level is assessed. For transactions presenting a low fraud risk (around 90%* of all Veepee payments), the merchant requests a frictionless authentication to the issuing bank relying on DSP2’s TRA exemption (Transaction Risk Analysis). Thanks to accurate scoring, Veepee maintains a low fraud rate for its online transactions.
Frictionless requests depend mainly on the merchant’s average basket amount, but that’s also where we have more room to adapt in order to win conversion points and increase performance.
Nathan Dondey, Payplug’s Head of Customer Success
FastPass, the major gateway to acceptance
Veepee has trusted Payplug to maximise the positive effect of frictionless authentication on payment acceptance. “In October 2021, we realised that we were getting relatively little frictionless from the BPCE Group, which represents around 20%** of public transactions in France. At that moment, Payplug suggested the FastPass solution", Sylvain Gignoux remembers. With it, exemption requests for cards issued by Group BPCE are managed directly between Payplug and the Group, to which Payplug belongs. A kind of “no queue” authentication to the payment authorisation, which Veepee fast benefited from. “Payplug quickly implemented the FastPass solution on our payment platform and this immediately triggered an increase of the frictionless rate by 45%* with transactions under 250 euros on BPCE issued cards. In other words, a 9%* increase in our gross acceptance rate on the BPCE network and an optimised customer journey, without increasing our exposure to fraud.”
* Veepee data, 2022
** BPCE data, 2021
