Brief Draft White Paper

7/29/2019 Brief Draft White Paper

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One Click Payment Solution

Introduction:

In the past 15 years e-commerce has become a mature market and is still growing. Thistrend is expected to continue in the coming years due to the further proliferation ofinternet and the trend of consumers being always online. Following this market trend, e-

commerce payments have seen a tremendous development in the past decade. Cardshave become todays most important online payment methods in most countries and willcontinue to be so for the foreseeable future. However, cards have important productflaws when used for web transactions since cards were never designed for the web.The customer is not physically present with his card, therefore e-commerce paymentsare known as Card Not Present (CNP) transactions. Without the card present, the mainflaw for (credit) cards as a means of payment is their vulnerability to fraud. To coverthese flaws we started using alternatives methods, but these have their own flaws,mainly fragmentation and a lack of user friendliness. These imperfections affectmerchants and consumers shopping experience.

For the payment world these imperfections and the trend of user being online bringopportunities to create new more efficient methods to consumers and merchants. Manypositive developments have taken place to optimize payments for the web. Innovationhas seen traditional payment methods come under pressure as consumers andmerchants migrate to more convenient and efficient and secure payment methods.However the journey is far from complete and does create operational issues formerchants who have to operate within this complex market. The online industry (bothmerchants and providers of financial services) should listen more carefully to consumerneeds if we want to maintain growth as we did the past decade. In the next paragraphs,I will highlight some of the most pressing customer needs which we believe will shapethe next phase in e-commerce payments.

Objective :

The objective of this paper is to highlight the use of the untapped information left by the

user on the various merchant websites. Consumers have more and more online

identities of various natures. They vary from verified credentials (e.g. bank passes) to

unverified credentials with stored preferences (e.g. social media credentials; the

expectations of social sign in are high amongst many marketers and web merchants).

This Initiative is to develop method to re-use these identities in the online commercecontext, with security levels that can be adapted to the risk or the value of the

transaction (basic security for low value, high level of security for higher values). There

are many benefits, including the improvement of the security of cards, credit transfers

and direct debits. By using a similar international online identity solution for all payment

types, the buyer experience will be harmonized. This leads to a better experience, more


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trust and therefore more sales if implemented in a way that the consumers privacy is

warranted.

Buyers can store profile information (address, name etc.) and disclose them to

merchants of their choice. This gives a merchant more certainty and leads to a better

buyer experience (more conversion). All channels will benefit as an online identityimproves all shopping experiences. I.e. mobile screens are small and have small

keyboards. Using already stored online identity profiles will reduce the need for input by

buyers and will therefore make the mobile channel easier to use.

Present Scenario:

Online shopping cart abandonment rates have skyrocketed in recent years. As a

consequence, online retailers are losing billions of dollars in revenue. According toForrester Research, 88 percent of consumers have fully abandoned an online shopping

cart without completing a transaction. Conventional wisdom calls on remarketing efforts

and improving checkout processes to convert online browsers into buyers. E-commerce

companies cannot survive without answering to consumer and merchant needs.

Merchants are facing heavy looses as there are users who are just looking but not

booking. Also, they are loosing money because of the continues charge backs. And the

present security features which are offered on web have the following short comings.

3D Secure has been developed and introduced in the past years to protect merchantsfrom a certain type of charge back (it wasnt me-type). The issues remaining are:- 3D Secure does not protect against other charge backs and does not prevent chargebacks happening in the first place.- 3D Secure is an extra step in the checkout process where people have to give in anadditional and dedicated password. This reduces order conversion, both because of theadditional step and the loss of passwords.

- 3D Secure has a weak consumer experience which sometimes resembles a phishingsite, which puts conversion under extra pressure.

- 3D Secure requires (additional) signup from every credit card holder. Sometimes thecustomer is forced to do this before he can proceed with the payment without knowing

of the benefits of doing so. (resulting in lower conversion rates of visitors becomingbuyers). A clear communication towards the consumer is missing.

Users are also tired of keying in the same data over and over on different web servers

Same kind of validations are done twice or thrice for a single transaction So even if by

mistake user enters wrong info even once the transaction would be declined.


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Sometimes users like to opt for the option thats more comfortable and easy to use

The checkout time of the process of a transaction is very slow

Retailers are always looking for new ways in which to decrease operationalcosts and reduce fraud

Operational costs in the current system is very high these various steps of validations

increases the operational costs.

Proposed Product :

To meet the growing customer and merchant needs we propose a product design One

Click Payment Solution with the following salient features.

1.Faster check out time

2. Increased customer loyalty

3. Growth in online transactions

4. Cost effectiveness: Because the operational cost would be less.

One click payment solution - Architecture

A e-commerce solution architecture, that can support online transaction processingcapabilities, and address the requirements that are unique (in addition to businessrequirements) to e-commerce, such as performance and security. It is a solutionarchitecture that addresses all the non functional requirements such as scalability,availability, User friendliness, Faster check out ,PCI-DSS compliance, DPA compliance,and any other associated regulatory compliance requirements. This paymentarchitecture will gel the consumer needs and the current payment system to give theconsumer a seamless experience.

With the high penetration of the internet and mobile, the user tend to be online. User

have also developed a habit of purchasing the goods and services online. But presently

if a user have to buy some good or services he will have to log in to the merchant web

site and provide the login credentials. Then he will have to build the cart to buy the

selected good. After the user have keyed in the contact and shipping details. He will be

moved to the payment page where he will be given the options of the type of cards and

based on the user selection of cards (Visa/ Master card) other options will unfold. Then

user will be requested to key in the card details. There after based on the geography


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laws he will be directed to the issuer web page where again he will be requested to key

in the same information and then after the issuer approve he will get the requested

goods. If the user had mistakenly entered the wrong information on the last page he

would need to start all over again. Also, if at the time of making the purchase the user is

not having the card with him he wont be able to buy the goods as we do not expect the

user to remember his 16 digit card number.

With One click payment solution user would need to just login in to the merchant

website and would need to register with our one click payment platform and provide all

the required information as he does today. Once the user is registered, for all the

subsequent payments he would just need to enter his CVC on the payment page and a

unique password issued by the issuer. This password will vary based on the payments

laws of the users country and the transaction amount.

How this solution works

Once the user is registered. Application will store the user details namely email address,

card number, shipping address, card expiration date etc in the secured PCI compliant

data base. So once user logons to the merchant website his merchant web site

credentials will be primarily used for the user authentication process. Since the user is a

registered with the application the moment the user clicks on the pay now screen the

application will automatically populate the shipping address, card expiration date and

the masked card number with just the last 4 digits visible to the user. Now user will be

just requested to just enter his 3-4 digit CVC value and a password if necessary ( Basedon geography or transaction amount). These simple steps will ensure that the consumer

has the most seamless and enjoyable checkout experience.

Key Benefits :

Once the a merchant host this application on this website and the user registers with

this application both can enjoy the following benefits.

1. Merchants will experience a 30% growth in the purchase volumes.

2. Offering a single page payment screen will increase the conversion rate by 90%.

3. Faster check out time for customer leading to higher customer satisfaction.

4. This will add a layer of security as the user is registered with the application , this

will mean lesser charge backs for merchants.

5.

Conclusionp


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Brief Draft White Paper

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