Precium, formerly known as Revio, has launched a new standard of payment tokenization to enable online merchants to meaningfully tackle the primary causes of payment failures. The company, which rebranded earlier this year to signify their growth from a local processor to global payments platform, is the first to introduce this technology to the South African market while internationally, it has quickly become the gold standard for processing secure, online transactions.
Failed payments impact all businesses. But in a business where the ability to consistently and securely process recurring, online transactions – such as for e-commerce and subscription businesses – payment failures represent an existential threat to growth and profitability.
“More than 10% of online transactions processed by the average enterprise e-commerce merchant fail. To make matters worse, a failed transaction costs more than one sale – nearly two thirds of customers elect not to re-attempt a failed transaction or choose to abandon the merchant entirely.”
“Businesses are losing customers and leaving money on the table, and don’t yet have the tools to solve this problem effectively. Network tokens are a new way to process card payments that increases authorisation rates, and eliminates expired card payment failures,” says Ruaan Botha, CEO and co-founder of Precium.
Network tokens enable merchants to unlock higher success rates and conversion. This includes lower rates of false declines (when a legitimate transaction is blocked by fraud monitoring rules), resulting in more seamless checkout experiences for online shoppers.
For subscription businesses, where up to 50% of payment failures are due to expired or lost cards, network tokens can improve customer retention and streamline user experience. When a customer’s card expires or is stolen, network tokens are automatically updated with their new card details. This removes the need for customers to manually update their card details and eliminates card expiry failures – and the associated involuntary churn – for subscription businesses.
“From a security perspective, network tokens offer end-to-end encryption throughout the payment journey, with the added assurance of tokens stored in our PCI DSS Level 1 vault. This makes network tokens far more secure than gateway tokens which are decrypted ahead of processing a transaction,” continues Botha.
Other benefits include the ability to mitigate processor downtime by cascading failed payments to another payment processor in real-time using Precium’s smart routing rules. This processor-agnostic approach to tokenization means that merchants own their customer tokens and can therefore migrate seamlessly between payment processors should the need arise.
For the sustainable growth of an online business, network tokens are an essential step.