Transforming E-Commerce Transactions: Incode’s Innovative Facial Authentication Solution  

As e-commerce continues to grow, with a monthly average of $663 billion spent on retail in the first half of 2023 and 13.8% coming from online sales in the US, the need for seamless transaction processes becomes increasingly vital. Despite the convenience and time-saving benefits that attract 67% of consumers to shop online, Mexican businesses face a significant challenge: high transaction rejection rates, with 36% of online transactions typically rejected due to security concerns. This problem not only affects conversion rates but also drives up operational costs.  

 Furthermore, the high rejection rates have severe repercussions beyond immediate financial impacts, including approximately 4.3 million chargebacks annually. Most concerning is the customer retention issue, where 43% of consumers whose initial purchase attempt is rejected do not return, causing businesses to lose potential clients they had invested resources to attract. This underscores the critical need for more efficient and secure transaction validation processes to support the growth of Mexico’s e-commerce sector.  

The Challenge of Transaction Rejections in E-Commerce  

Online transactions are often subjected to stringent verification processes to prevent fraud, leading to potential customer drop-off points if the process is too cumbersome or slow. High rejection rates not only mean lost sales but can also damage customer trust and brand reputation. An efficient and user-friendly verification process, therefore, is crucial to maintaining consumer confidence and ensuring a smooth transaction flow.  

Why is Incode’s approach to transaction security superior?

Our proprietary technology significantly enhances transaction security through two key methods. Firstly, our system validates identities even before a transaction begins. This ensures that the transaction is initiated with complete identity verification, reinforcing its security as it moves through the network. Secondly, and perhaps more crucially, our approach to fraud is deterministic. Unlike traditional fraud models that rely on numerous variables to probabilistically estimate the likelihood of identity fraud, our technology can confirm a person’s identity in a clear, binary manner. This shift from probabilistic to deterministic methods marks a significant advancement in the fight against fraud.

How Incode’s Facial Authentication Enhances Online Transactions  

Incode has tailored a facial authentication solution that integrates effortlessly with existing e-commerce platforms. This system simplifies the identity verification process, offering a smooth and quick method that effectively reduces the common friction points that lead to transaction abandonment.  

When a transaction triggers a fraud alert, which would typically result in rejection, Incode’s technology intervenes. The system prompts the customer to take a quick selfie. Our advanced AI algorithms verify the customer’s identity. This process efficiently verifies the identity of the person making the purchase and confirms they are the legitimate owner of the payment method being used. 

This streamlined approach reduces the steps customers must take to prove their identity, thereby enhancing the ease of transaction completion while ensuring robust security. By tackling both security concerns and user experience simultaneously, Incode’s facial authentication helps e-commerce platforms maintain customer satisfaction and increase successful transaction rates.  

Key Benefits of Using Incode’s Facial Authentication  

• Improved Conversion Rates: By simplifying the verification process, our technology helps ensure that more transactions are completed successfully, directly enhancing revenue.  
• Reduction in Fraud and Chargebacks: Secure and reliable identity verification cuts down on fraudulent transactions and associated chargebacks, protecting revenue and reducing operational strain.  
• Enhanced Customer Experience: A quick and hassle-free verification process aligns with consumer preferences for convenience, improving customer satisfaction and loyalty.  

Without an easy way for shoppers to verify their identity, e-commerce platforms face significant rejection rates due to transaction friction. By addressing this critical pain point, Incode not only boosts the operational efficacy of online businesses but also contributes to a more reliable and enjoyable digital shopping environment.  

E-commerce businesses looking to minimize transaction rejections, reduce fraud, and enhance customer satisfaction will find a robust solution in Incode’s facial authentication technology. Discover how this tool can transform your online transaction process by visiting our website or contacting our sales team. With Incode, secure and streamline your e-commerce operations while enhancing customer engagement.