Microsoft testing API to enable smoother payments
Microsoft has commenced trials of its Payment Request API technology designed to make in-browser payments easier with Microsoft Edge. The API has been put into preview builds, with further support and full implementation planned in future. The technology could help developers enable e-commerce payments through Microsoft Wallet in Windows 10. Complex checkout systems put customers off paying, but Microsoft aims to make the process easier with Payment Request API automatically filling in data from mobile wallets. It is hoped that the API will encourage Microsoft Wallet adoption and browser shopping on desktop.

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Microsoft has begun testing the Payment Request API, a developer solution for easier in-browser payments, in its Microsoft Edge web browser, according to a company blog post.

Right now, the company has put the API into preview builds, with more definitive support and implementation on the horizon for next year.

The move could make it easier for developers to allow Windows 10 users across devices to make e-commerce payments through Microsoft Wallet.

The API helps solve pain points associated with digital buying. It’s challenging for customers to buy in-browser, especially on mobile phones, thanks to pain points associated with smaller screens and slow connections. That’s because consumers are often unwilling to go through complex checkout processes on these screens — 46% of cart abandonments occur at the payment stage, and others happen at address entry points or checkout login.

Payment Request API, which was developed by a consortium, helps solve those problems, by using information that users have already entered into mobile wallets to fill checkout information feeds, which could ultimately lead to better conversions and higher sales. And because it’s an API, it can build a consistent experience across websites, which pleases both consumers and merchants alike.

That could push more users to adopt Microsoft Wallet, ultimately making it a more competitive product in the ecosystem.

Because the API requires Microsoft Wallet to work, it could push more users to enter their information in the wallet. The pain points that the API can solve might be enticing to consumers looking for an easier way to shop on mobile. But because Microsoft Wallet is tied to the API, it could push more users to enter their information into the mobile wallet, which could grow adoption and bring on users that might test the wallet in other uses.

The wallet could also have a compelling use case for desktop shopping down the line. Windows Phones hold a small share of the overall smartphone market. But a considerable number of customers use Windows PCs, and 81% of e-commerce is done via desktop. That means that, if the API grows beyond just Microsoft Edge and into Chrome or other browsers for desktop, and Microsoft Wallet opts to support these browsers for Windows 10 users, its addressable base could expand, which could help the wallet find its niche among users looking for ways to check out faster on desktop.

Time will tell if this API ultimately helps alleviate pain points and improve the user experience while shopping.

BI Intelligence, Business Insider's premium research service, has compiled a detailed report on shopping cart abandonment that explains what leads a shopper to abandon an online purchase and how retailers can begin to combat rising shopping cart abandonment rates. The report collects and analyzes data from top e-commerce companies, as well as thoughts from industry experts whose job it is to reduce abandonment rates and boost conversions, to come up with a number of solutions that can help retailers recover lost sales.

Here are some key points from the report:

Shopping cart abandonment is increasing, and it will continue to do so as more consumers shift to online and mobile shopping. In 2013, as many as 74% of online shopping carts were abandoned by shoppers, according to data shared with BI Intelligence by e-commerce data company, Barilliance. That abandonment rate is up from 72% in 2012, and 69% in 2011.

An abandoned shopping cart does not automatically translate to a "lost sale," because three-fourths of shoppers who have abandoned shopping carts say they plan to return to the retailer's website or store to make a purchase, according to data from SeeWhy. Online-only retailers are at a disadvantage to "omnichannel" retailers in this respect because they have fewer channels through which to recover lost sales.

Retailers can reduce the rate of abandonment and increase conversions by streamlining the checkout process and also by retargeting shoppers with emails after they've left a website. Initial emails, sent three hours after a consumer abandons a cart, average a 40% open rate and a 20% click-through rate, according to Listrak.

More broadly, an abandoned shopping cart should be seen as part of the increasingly complex series of steps a consumer might take before finally making a purchase and a strong indicator of consumer interest in a product or a brand. Technology that helps retailers collect and leverage online shopping cart data is likely to be a worthwhile investment.

In full, the report:

Explains the complex relationship between consumers and retailers and outlines reasons why shoppers abandon a purchase.

Includes interviews with executives from top retailers and marketing agencies who talk about what they are doing to reduce shopping cart abandonment.

Proposes a list of solutions that are proven to reduce shopping cart abandonment for online retailers.

Forecasts where this trend is going and how shopping cart abandonment will affect retailers — bricks-and-mortars and e-commerce companies alike — in the future.

To get your copy of this invaluable guide, choose one of these options:

START A MEMBERSHIP Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of why consumers are abandoning their carts.