In a short time, it has become a frequent activity in our lives. We reviewed a catalog of products that caught our attention on a web page. We find the one we like the most and, with a small and simple procedure, we are able to complete the purchase in a matter of seconds. But how does the technological process that makes all of this possible work?
Many citizens today choose to purchase products and services, benefiting from the multiple advantages offered by digital technology and e-commerce, from the convenience of receiving products at home to the possibility of enjoying personalized experiences and offers.
This has required that companies have to transform their procedures to meet the new needs of customers. The brands that have opted to adapt to the new digital scenario have been able to expand their markets, reaching new consumers, beyond the physical restrictions and costs imposed by the obligation to be present in a physical store in each location.
As consumers, we are rarely aware of what technologies allow us to enjoy this range of new options. Today, we buy online trusting in the security and efficiency of transactions. But, how is the process behind an online or physical purchase really managed?
Obviously, for many brands it is very difficult to manage these processes directly, especially when they increase their sales volume, start to operate in several channels at the same time (such as stores, franchises, distributors, digital platforms…) or extend their market to other countries. This is when everything becomes much more complex, the ideal time to turn to platforms that can provide the right fintech tools.
This is what Adyen is responsible for, a company born in the Netherlands which, as its CEO in Spain and Portugal, Juan José Llorente, explains, aims to provide “a subscription to innovation”. What do you get with this? That companies concentrate on what is really important to them: developing their business, leaving technically complex procedures, such as maintenance and configuration of payment methods, in the hands of a trusted ally.
The advantage for companies is clear. This type of technology allows you to manage payments, both in a physical store and in e-commerce, in any currency, location or form of payment. And there are also benefits for end users who, without realizing it, use these services when making a payment over the Internet: speed, security and adaptability to the increasingly diverse forms of payment available, from pay by link to contactless and the wallets.
Having this type of technology allows brands to offer new experiences to their customers. An example of this is the “infinite corridor”, which consists of being able to buy from a mobile device located in a store the entire catalog that can be found on the web, to later receive it comfortably at home. This can be very useful when the customer has gone to a store to discover that there was no part that they had previously seen in the online catalogue. In that case, you can try or review another similar product and complete the purchase of the one you really want at the same time thanks to technology, to receive it later at home.
Another option is to convert a specific purchase into a recurring subscription, thus allowing a registration (for example, to a gym) not to imply an additional registration process, but rather to resolve everything the first time.
We have all been assailed by this doubt: is the transaction that I am making through my mobile or computer safe? Should I really trust this page? The first step to find out is to ensure that payment systems comply with all the necessary regulations, such as the European regulation on electronic payment services PSD2 or reinforced authentication.
However, the problem does not end here. We have often found ourselves being asked for additional certification. This procedure, when it is unnecessary, can be cumbersome, and even end up causing some customers not to complete the purchase process. Llorente explains that “Adyen’s risk management model has a pioneering system that analyzes in which cases it is really necessary to request additional authentication, so that this step is added only when it makes sense to do so.”
To make these estimates reliably, the company uses Artificial Intelligence, analyzing the behavior of consumers in similar stores and assessing the safety of purchases. This has allowed them to securely manage more than 500 billion euros in transactions in the past year alone.
Along with security, one of the aspects that worries brands the most is the possibility of scaling the business to new channels and markets. That is why it is so important to have adaptable platforms. To make it possible, Adyen opted to have their own technology, which allows them to control the process from start to finish and accompany the client throughout all stages. This is how developments such as own terminals for physical POS payments or new “embedded” financial services (those that eliminate the need for banks) arose.
And this is only the beginning. Aware of the importance of continuing to innovate in technology, the company has opened a new technology center in Madrid this year, which aspires to become its second headquarters at a corporate level, only behind Amsterdam.
At this point, it is inevitable to wonder where the sector is headed. What is the future of the e-commerce market for companies? Llorente explains that they are detecting a vertiginous growth in this type of transaction: “Only the first 6 months of the pandemic accelerated e-commerce like the previous 4 or 5 years.”
It is clear that phygital commerce (physical and digital) is here to stay. Citizens have become accustomed to the comfort and personalization that it offers us. And the companies that are firmly committed to this model have discovered that their growth expectations have no limits other than their talent in offering interesting proposals with differential value to their potential consumers.
