Black Friday has become one of the biggest shopping days of the year, and a prime revenue opportunity for retail businesses. While originally celebrated as a U.S. holiday, Black Friday has expanded to every corner of the globe, generating over $70 billion in global sales.
This year, 64% of consumers intend to shop during Black Friday-Cyber Monday period, making it a highly competitive time for businesses. To stand out and maximize sales, companies offering a seamless payment experience will be best positioned to turn consumer interest into sales.
Payments are a critical part of Black Friday success
Delivering an exceptional payment experience for Black Friday shoppers has become just as important as the products businesses are selling. Here are three reasons why:
Demand for payment method diversity
Consumers are increasingly looking to diversify their payment methods, and businesses that cannot meet those expectations are losing potential customers. For example, 39% of millennials are gravitating towards buy now, pay later (BNPL) and other alternate payment methods not offered by many retailers.
With consumers becoming more selective about the payment options available to them, retailers must ensure that their digital storefronts are equipped with a wide variety of payment methods to accommodate different customer preferences.
Cart abandonment issues
Online shopping cart abandonment sits at around 70% currently, which means the majority of Black Friday shoppers who add items to their cart will fail to complete a purchase.
While cart abandonment cannot always be avoided (i.e. a customer changes their mind about a purchase), having a slow or overly-complicated checkout process is one of the main reasons why consumers abandon an online purchase. For retailers, cart abandonment represents a significant loss of potential revenue during high-volume sales events like Black Friday.
False fraud declines
False declines on a purchase are a major source of customer frustration that lead to further cart abandonment. Last year during Black Friday, the largest U.S. commercial bank reportedly erroneously declined a large number of credit card purchases.
Businesses clearly must be vigilant about fraud, but they also need to balance security with customer experience to avoid turning away legitimate shoppers.
How payment orchestration can solve these challenges
Payment orchestration is a powerful solution to many of the challenges retailers are facing today. It enables businesses to integrate a variety of payment options into a single platform, ensuring that customers have access to their preferred methods. Resulting in a smoother, faster checkout process, which is essential during events like Black Friday when consumers expect efficiency.
But payment orchestration isn’t just about the shopping experience; it also provides benefits throughout the lifecycle of digital payments.
The dynamic routing effect
Payment orchestration helps boost approval rates by automatically rerouting failed transactions to other payment providers. For example, if a credit card transaction fails with one provider, dynamic routing will automatically try another, maximizing the likelihood of a successful payment. This not only improves the customer experience but also helps retailers recover sales that would have otherwise been lost.
Advanced fraud prevention integration
Additionally, payment orchestration plays a pivotal role in fraud prevention. By integrating with advanced fraud detection systems like 3DS and AI-based tools, orchestration platforms can reduce the likelihood of legitimate transactions being incorrectly declined.
Retailers can strike the right balance between preventing fraud and ensuring that genuine customers are not turned away.
Using payments orchestration to capitalize on Black Friday
Integrating with a payment orchestrator positions retailers can help maximize their success on Black Friday in three ways:
Offering the payment method of choice
Integrating multiple payment methods seamlessly provides a better experience for Black Friday shoppers. By integrating various credit and debit card providers, digital wallets and BNPL solutions through a payments orchestration platform, retailers can cater to a broader audience and ensure that no potential customer is left without a way to complete their purchase.
Reduce cart abandonment
During high-volume shopping events like Black Friday, payment orchestration ensures that transactions are processed quickly and securely, minimizing the friction that can lead to abandoned carts. With fewer steps between selecting a product and completing the purchase, customers are more likely to follow through, resulting in higher conversion rates for retailers.
Attracting international shoppers
Given that Black Friday has become a significant global shopping event, businesses that leverage payment orchestration have a better chance of attracting international shoppers. By integrating alternative payment methods and supporting foreign currencies, businesses can expand beyond their local markets to maximize their revenue potential during Black Friday.
Why choose Yuno as a Black Friday partner
While payments orchestration offers a variety of benefits to online retailers, not all payment orchestration platforms are the same. For retailers looking to thrive during high-traffic events like Black Friday, it’s critical to choose a payments orchestration platform that is built for global scale and has integrations with leading payment providers.
As the leading global payments orchestrator, Yuno is the ideal solution for retailers looking to capitalize on shopping events like Black Friday. With over 300 global payment integrations, Yuno ensures that your customers have access to their preferred payment methods and that their payment experience is secure and frictionless. Yuno’s smart routing and advanced fraud prevention tools also help businesses increase conversion rates and maintain payment security.
Discover why Yuno is the payment infrastructure solution of choice: book a demo.
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