Interview • 21.10.2015

"The customer needs to receive consistent information and services at each contact point"

Interview with Mirko Hüllemann, CEO of Heidelpay

Mirko Hüllemann: In order not to lose interested customers during the checkout...
Mirko Hüllemann: "In order not to lose interested customers during the checkout process again, it is crucial to determine payment methods on an individual basis."
Source: Heidelberger Payment GmbH
Invoice, PayPal, direct debit und instant transfer are the preferred methods of payment of German customers in eCommerce. Several studies over the past few years have also shown: offering convenient payment methods has become an especially important service aspect for customers. Mirko Hüllemann, CEO of payment service provider Heidelpay, knows the right methods of payment for the respective choices. 

Mr. Hüllemann, how important is it for the brick-and-mortar and online retail sectors to provide a variety of payment methods? 


In light of the fact that studies revealed that a large portion of potential customers literally abandons the shopping cart during the checkout process because their preferred payment method is not being offered, presenting a variety of payment methods is crucial for online retail. While customers have the option of paying cash for the items at the checkout in brick-and-mortar businesses, the only choice they have on various online channels is to search for the same product at a competitor’s site. This needs to be prevented by offering a wide range of payment methods – both at the point of sale at a brick-and-mortar store and in online retail. However, the idea is not to offer as many payment methods as possible but rather to filter out the most important ones. 

What methods of payment are imperative for which sales channel? 

A variety of different factors plays a role in the payment methods retailers should choose for the respective sales channel. It is, therefore, absolutely essential for example to factor in the respective customer preferences , target groups, the product to be sold, the distribution channel and country-specific factors when you set up the mix of payment types. 

In order not to lose interested customers during the checkout process again, it is crucial to determine payment methods on an individual basis based on the underlying business model. To do this, many online retailers resort to the expertise of payment service providers. Popular payment methods in German omnichannel commerce include purchase on account, PayPal, direct debit, and instant transfer, whereas European eCommerce prefers national and international credit and debit cards.

The offer of different payment methods is diverse - the right payment method is...
The offer of different payment methods is diverse - the right payment method is what matters.
Source: Heidelberger Payment GmbH
How do payment services need to be designed for the various channels? 

Consumers increasingly expect fast and at the same time secure payment processes that can be conveniently completed regardless of the device. Simple checkout processes should also ensure a smooth and easy ordering process irrespective of the channel and location. To ensure this, it is essential to configure the checkout pages using responsive design. Thanks to automatic adaptation to the output medium, all contents can be optimally presented. 

Omnichannel also means to seamlessly link all of the different channels. After all, a purchase often doesn’t just take place via a single channel. Customers buy online for example and pick up the merchandise at a brick-and-mortar store – or vice versa. This places increasing demands on the payment process. 

Customers don’t want to pay for the merchandise with cash at the checkout but at a POS terminal with the typical online payment process, such as PayPal or payment by invoice and subsequently have the product delivered to their homes. It is crucial to offer customers a consistent user experience, proven payment methods and the convenience they are used to – regardless of the sales channel they choose. 

Additionally, a professional omnichannel payment solution should offer the chance to review and monitor all payment processes with just one back-end system regardless of the chosen sales channel and payment process.

The new Euronics online marketplace uses a payment solution from Heidelpay....
The new Euronics online marketplace uses a payment solution from Heidelpay. Customers can order products from various retailers of the buying group through the platform - even with mixed baskets they only need to go through one checkout process.
Source: Heidelberger Payment GmbH
How can retailers implement a truly comprehensive omnichannel payment system? 

Today it is no longer sufficient to provide services on different sales channels, for instance at the retail store, the online store and via a mobile app. It is also essential to integrate these channels intelligently so that the customer receives consistent information and services at each contact point. This also applies to payment processing: customers always want to be able to use the same payment options – regardless of whether they buy at a stationary point of sale, the web store or their mobile devices. 

This is why a good portion of retailers utilize the know-how and the experience of eCommerce service providers such as payment service providers (PSP). Aside from integration, they also take over payment processing. If the PSP is also authorized as a payment institution, retailers don’t need to acquire their own licenses to provide payment services in a time-consuming process since the payment service provider already holds the respective licenses. When you collaborate with payment partners, you need to make sure that their array of payment procedures and services is also available for all other channels like mCommerce or the point of sale aside from eCommerce. Thanks to standardized integration processes, plug-ins for all popular store systems and interfaces to downstream systems such as ERP for instance, a professional payment solution seamlessly and within a short time blends into the existing processes of an online store. 

What role does the payment aspect play for customer satisfaction – compared to other services that omnichannel retailers offer today? 

Only a consistent shopping experience is reflected in complete customer satisfaction. If one component fails, potential shoppers feel insecure and stop the purchase. This applies especially for the checkout processes and payment processing. Whereas many services are “nice-to-have” features in omnichannel commerce, professional payment systems are indispensable: when potential customers don’t find their preferred payment method or struggle with technical issues during the checkout process, they cancel the transaction. Only in very rare cases will customers try to shop at the same platform again. 

Interview: Daniel Stöter, iXtenso.com

related articles:

popular articles:

Thumbnail-Photo: Turning customers into friends - heres how it works...
24.01.2024   #marketing #online marketing

Turning customers into friends - here's how it works

WhatsApp channels as a secret weapon in the marketing mix

In fall 2023, Meta launched WhatsApp channels, a completely new feature in 150 countries ...

Thumbnail-Photo: ISE 2024 - the future of retail
23.10.2023   #online trading #Tech in Retail

ISE 2024 - the future of retail

ISE will take place in Barcelona from 30 January to 2 February 2024

Since it began in 2004, Integrated Systems Europe (ISE) - the world's premier exhibition for professional audio visual (pro AV) and systems integration - has grown in size, strength and influence to become an industry-defining event. Every year, ...

Thumbnail-Photo: Social Commerce: Community sells?
04.10.2023   #online trading #sustainability

Social Commerce: Community sells?

Why the community approach is replacing fast delivery among customer demands and what that means for you.

For a long time it was said that fast or even "same day delivery is the key". For Fabian Mischler, this is no longer the only key to satisfied customers. In an interview, the CEO of the social commerce platform ooblee told us why community ...

Thumbnail-Photo: For you: Retail marketing calendar 2024
08.01.2024   #marketing #sales promotion

For you: Retail marketing calendar 2024

You can use these phases and days for yourself and your business in the upcoming year

Birthdays, holidays, holidays ... We record all these days in calendars every year to plan our personal daily lives. But the financial year can also be planned. This can be particularly important for retailers. You can plan ...

Thumbnail-Photo: Black Friday and Cyber Monday: Minimize mistakes, maximize success...
11.10.2023   #e-commerce #customer satisfaction

Black Friday and Cyber Monday: Minimize mistakes, maximize success

Mistakes you can avoid on promotion days like Black Friday and Cyber Monday

The promotion days on November 24 and 27 raise the sales hopes of many retailers. Despite the huge potential, these events can also be a challenge. Competition is fierce, customers are critical and expect exceptional deals. Mistakes in preparation ...

Thumbnail-Photo: Christmas decorations: set the scene for your store!...
09.11.2023   #customer experience #shop decoration

Christmas decorations: set the scene for your store!

From the floor to the shelves and lights to the shop window - here's how to get your store ready for Christmas!

The weeks leading up to Christmas Eve are considered to be the busiest of the year....

Thumbnail-Photo: Valentines Day marketing: creative campaigns to make your heart sing...
18.01.2024   #brick and mortar retail #sustainability

Valentine's Day marketing: creative campaigns to make your heart sing

Examples of how you can score points on Valentine's Day

Zalando killed two birds with one stone in 2021: with the invitation to "campaign exchange the clothes after your ex", customers were shown ...

Thumbnail-Photo: The quiet hour – A contribution to inclusion in retail?...
31.10.2023   #customer satisfaction #customer experience

The "quiet hour" – A contribution to inclusion in retail?

Finding calm in a busy world: supermarkets make their mark

The world of commerce is constantly looking for new ways to attract and retain customers...

Thumbnail-Photo: Tips: Optimal shopping experience for  Christmas...
22.11.2023   #online trading #artificial intelligence

Tips: Optimal shopping experience for Christmas

How to prepare for the shopping days as an Amazon retailer

The promotional days at the start of the Christmas...

Thumbnail-Photo: Veganuary 2024: Best sales strategies to reach the ‘no meat’...
11.01.2024   #brick and mortar retail #food retail

Veganuary 2024: Best sales strategies to reach the ‘no meat’

Why retailers should take advantage of the trend

Veganuary has begun its fourth year in Germany. Over 850 German companies are taking part in this global movement for a plant-based ...