Payment drop-off and cart abandonment are two common challenges e-commerce businesses face. While there are several reasons why a customer may choose not to go forward with a purchase, the overall customer experience plays a major role here. Whether it be slower payment processing or issues with the payment provider, any obstruction will directly impact the user experience and reduce conversion rates.
A natural solution to this problem is optimising the drop-off funnel. What most businesses do not know is that an easy way to improve customer retention is switching to virtual IBAN. Read ahead to learn the different ways virtual IBANs can improve the transaction experience for e-commerce businesses.
What Is Virtual IBAN?
IBAN, or International Bank Account Number, is a standard system to identify the bank account and country when processing cross-border payments. In this regard, virtual IBANs are simply virtual alternatives to regular IBAN. However, there is one differentiating characteristic of virtual IBAN.
These systems do not represent an actual bank account but reroute incoming payments to an existing account to bypass the common processes required in traditional banking. This not only makes the process more frictionless but also more secure and faster than traditional banking alternatives.
Virtual IBAN For Customer Experience:
Payment gateways are one of the most common touchpoints for customer drop-off on an e-commerce website. Limited payment options are one major contributor to payment drop-offs. Other factors may include failed payments and technical problems. You can address the following drop-off factors through virtual IBAN and improve customer experience.
A delayed refund can significantly impact your customer satisfaction. Instead of waiting for payment authorisation, virtual IBANs allow businesses to issue refunds instantly and automate their payment processes. This is primarily because payments are processed through domestic rails, allowing instant money transfers.
Since virtual IBANs keep a track record of each transaction, businesses can also easily identify and track refunds. And last but not least, their flexible processing means businesses can easily issue partial refunds or multiple transactions.
Another significant way virtual IBANs can help improve customer experience is by reducing manual reconciliation efforts on the part of the customer. Virtual IBANs are directly embedded into a business’s back end. This means that customers are not required to provide a Unique Reference to the company when working with payments.
Since these Unique References do not have to be manually processed, virtual IBANs help decrease issues arising from operational errors. By extension, this increases reconciliation rates and the working capital for businesses.
Flexible Payment Acceptance:
Limited payment options are one of the leading causes of customer transaction drop-off. However, with virtual IBAN, you can address this issue in no time. As a standard service, virtual IBANs are designed to provide a variety of payment options to customers. Not only does it streamline multi-currency transactions, but it also provides customers complete control.
This provides customers with a customisable payment infrastructure and processes suited to their needs. Virtual IBANs can also be set up and linked to different accounts. Several online platforms now provide services for instant vIBAN account set-up. If you wish to get started with virtual IBAN, go to Monneo and follow the steps to create your vIBAN account.
If you run an e-commerce business, providing secure payment gateways is a must. The biggest advantage of virtual IBAN is its secure transaction processing for businesses and customers. Since the funds are only routed to one account, risks pertaining to hacks and frauds are significantly reduced.
In addition, it is an encrypted cloud service which provides better security and lower downtime. By complying with AML and KYC security regulations, businesses can ensure a secure payment process and improve customer experience.
Virtual IBAN is revolutionising the e-commerce landscape. This banking as a service product is especially helpful in B2B transactions. With excellent functionalities and benefits, virtual IBAN is the secret to improved customer retention and experience.