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35% of Shoppers Leave After a Card Decline
Puma Boosts CTR with Google Cloud’s Generative AI
AI Emotion Detection is Transforming eCommerce
TrueLayer Secures $50M to Expand Pay-by-Bank for eCommerce
How SMBs Can Thrive in an Omnichannel World
ECOMMERCE TRENDS
35% of Shoppers Leave After a Card Decline—Tokenization Could Be the Fix
Card declines are costing merchants big, with 35% of shoppers abandoning a retailer after just one declined transaction. According to a PYMNTS Intelligence report, network tokenization is emerging as a key way to prevent this from happening, offering a more secure and seamless payment experience.
Tokenization replaces sensitive payment info, like credit card numbers, with unique digital tokens. This helps protect customer data and ensures smoother checkouts, which can build trust and boost customer loyalty.
What makes network tokens even better is that they’re generated by big players like Visa and Mastercard and come with added security, including unique cryptograms for each transaction. The report found that this tech can improve approval rates by 2.1% and cut fraud by 26%—a win-win for both businesses and shoppers.
With card fraud losses expected to hit $165 billion over the next decade, merchants are under pressure to step up security. Plus, card networks are charging higher fees for non-tokenized transactions. By adopting tokenization, businesses can streamline payments, reduce costs, and keep customers coming back.
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ECOMMERCE TECH
Puma Boosts CTR with Google Cloud’s Generative AI for eCommerce
Puma is seeing significant improvements in its eCommerce performance after expanding its partnership with Google Cloud to leverage generative AI tools. Using Google’s Imagen 2 on Vertex AI platform, Puma has been generating personalized product imagery, which has resulted in a 10% increase in click-through rates (CTR) in markets like India.
By using generative AI, Puma is creating market-specific content and automating manual editing tasks like color correction and composition. This technology enables the brand to deliver more relevant, region-specific product images, enhancing the shopping experience for customers in over 120 countries.
Puma, which migrated its entire eCommerce ecosystem to Google Cloud earlier this year, has also reported a 19% increase in average order value (AOV), thanks to improved personalization efforts powered by Google Analytics and Big Query.
CEO Arne Freundt highlighted that this investment in AI is key for building Puma’s brand presence in major markets like the U.S. and China. Puma plans to expand its use of Google Cloud’s AI tools, including Imagen 3 and Vertex AI Search, to further enhance shopper engagement and drive conversion rates across its global eCommerce channels.
ECOMMERCE SALES
AI Emotion Detection is Transforming eCommerce Customer Experience
Artificial intelligence is making significant strides in decoding human emotions, and eCommerce businesses are using this technology to enhance customer interactions and drive sales.
A recent study in CAAI Artificial Intelligence Research shows how AI is evolving to recognize emotions through facial expressions and voice patterns, with retailers leading the way. According to Pavlo Tkhir, CTO at Euristiq, AI’s ability to analyze emotional cues will help eCommerce brands deliver highly personalized shopping experiences.
Companies like Amazon and Zendesk are already using AI-powered emotion detection to improve customer service and sales. Zendesk’s sentiment analysis tool identifies emotional signals, enabling eCommerce support teams to adjust their responses and improve customer satisfaction.
Meanwhile, Amazon’s voice analysis technology could tailor product recommendations based on a shopper’s emotional state, enhancing real-time personalization and boosting conversion rates.
Despite its potential, challenges persist, such as ensuring the accuracy of emotion detection and addressing privacy concerns. Yet, as AI improves, it offers eCommerce brands an unprecedented opportunity to connect with customers on a deeper level, anticipate their needs, and provide a more engaging shopping experience—ultimately leading to increased sales and customer loyalty.
ECOMMERCE DIGITAL PAYMENTS
TrueLayer Secures $50M to Expand Pay-by-Bank for eCommerce
TrueLayer has raised an additional $50 million, extending its Series E funding round to further grow its pay-by-bank network, which is gaining significant traction in the eCommerce sector. The company, which processes over $50 billion in payments annually, is expanding its reach across Europe, where its open banking network is live in 21 countries and serves 10 million users.
This latest investment allows TrueLayer to challenge traditional payment methods by offering a faster, safer, and more cost-effective way to pay online. Francesco Simoneschi, CEO and co-founder, emphasized the importance of their network, which connects banks, merchants, and consumers, allowing for real-time, account-to-account payments that streamline the checkout experience.
The funding, led by Northzone, positions TrueLayer to capitalize on the growing demand for pay-by-bank in eCommerce. With eCommerce merchants seeking quicker and cheaper payment solutions, TrueLayer’s infrastructure is becoming a go-to solution for businesses looking to enhance customer experiences and drive conversions.
TrueLayer’s partnerships with companies like OpenPayd and Worldline are already bringing instant, seamless payments to a growing number of eCommerce platforms across Europe, promising smarter payment journeys for merchants and consumers alike.
ECOMMERCE GROWTH
How SMBs Can Thrive in an Omnichannel World
Small businesses are the backbone of the U.S. economy, but they face increasing challenges—from navigating digital transformations to managing rising operational costs.
To stay competitive, small and medium-sized businesses (SMBs) must embrace omnichannel strategies, and Visa executives recently shared key insights into how they can do so successfully.
SMBs must stay in tune with their customers, particularly Gen Z, a generation that grew up with digital-first experiences. According to Visa’s Kirk Stuart, businesses that understand and cater to Gen Z preferences, whether online or in-store, will have a clear edge in the marketplace.
Moving to digital payments can seem overwhelming, but simplicity is key. Sara Craven of Visa highlighted that while the backend processes are complex, for the customer, everything should feel seamless. Secure payments, robust authentication, and fraud prevention measures are critical to building trust and ensuring a smooth experience. Simplify your email marketing with Omnisend, today!
Data is a powerful tool for SMBs, providing insights into customer preferences and helping turn browsers into buyers. Visa’s Alex Burgin emphasized that leveraging payment gateways to streamline transactions can help SMBs maximize their potential, regardless of industry.
Artificial intelligence (AI) is also a game changer for SMBs. AI tools not only help combat fraud but also automate tasks like scheduling and customer reminders. Visa executives noted that advanced technologies can save businesses time and money while improving efficiency and security.
With the right tools and strategies, SMBs can thrive in today’s omnichannel landscape, turning challenges into opportunities for growth.
Signing off,
The Merchant @CartHustle