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December 2, 2021

Costly payment collection disruptions. How to avoid them?

In recent years, online shopping has entered its golden age, and online shopping is growing even more during the holiday season. As the e-shop market has become highly competitive, the e-shop owners are more and more focusing on the technological solutions that make shopping smoother. One of them is the payment initiation service, which allows e-shops collecting payments not only quicker but also in a more reliable way.

One cannot afford the disruptions, especially during the holiday season.

Jelena Mikhailova, the head of the Lithuanian electronic money institution Contomobile, which provides the payment initiation service Conto QuickPay, states that at the growth of the e-shops and their trade volumes, the reliability of payment collection is becoming truly important.

“Entrepreneurs choose our offered PIS (payment initiation service) primarily because of the integration fees that are more attractive than those offered by the bank (Bank Link), as well as because of the modern and smooth operation. However, the fact whether an e-shop will continue to use the service, is determined by the quality of payment collection – even the slightest disruptions affect the image of a seller, and reduce sales. That is why the entire Contomobile team prioritizes the stability of IT systems and professional client service,” said J. Mikhailova.

According to Justinas Valiūnas the head of the e-shop of e-beauty products operating in the Baltic States and the United Kingdom and using the Conto QuickPay service, the reliable collection of payments not only helps to maintain a good reputation, but also to avoid significant losses. This aspect is especially relevant during the holiday season when e- trade volumes increase from a few percent to several times.

“According to our calculations, usually three hours of impaired payments at would cost 6000 euro, this amount may double during the holiday season. Like any other business, we cannot tolerate such losses, thus, we are very pleased that the Contomobile team has taken care of the stability of its IT solutions and a particularly open client service team,” noted J. Valiūnas.

Own advantages for both sellers and their customers

According to the developers of Conto QuickPay, the solution adapted for e-shops of all sizes is also attractive in that sense that it is extremely easy for the customers to make payments, and the business can dispose of the collected funds immediately.

“Alongside with ensuring security and stability, we do not forget the fact that the growth is important for every business. We contribute to the development of our clients by our functionality that allows them stop worrying about payment management: we have implemented automated transferring of money to the customer when the goods are returned; we have integrated the payment button into the invoices sent by e-mail. Contomobile clients can conveniently handle all of this in the self-service portal, which may be conveniently linked to accounting systems,” said J. Mikhailova. “One of the reasons that allows us to expand the range of services while maintaining stability is the long-term experience of the group of companies to which Contomobile belongs. The group's first company, Forbis, has been operating in the field of banking IT systems for almost 30 years, thus, our team has been able to learn about payment services from various perspectives and understand what each client’s needs are.”

The biggest advantage is speed of operation.

E-shops can start using the Conto QuickPay Payment Initiation Service very quickly, and the integration into the client systems takes from a couple of hours to several days. According to the head of Contomobile, the speed of operation is also important in other areas of the company's activities.

“We started Conto QuickPay during the pandemic when e-trade businesses were particularly in a hurry to allocate their activities in the internet. We have immediately pre-engaged ourselves to being quick and flexible – this is namely, what the rapidly changing e-commerce sector requires. Together with our teams of technology and client servicing, we currently focus on timely updates and the quickest possible response to the client inquiries – we strive to lead the way in this sphere,” said J. Mikhailova.