Adyen and GIE CB launch a solution to automatically update bank data

Adyen and the Groupement Economique des Cartes Bancaires (CB) are launching MDC (Update of CB Card Data), a solution designed to optimize the customer experience and support the growth of e-retailers. Deezer is the first player in France to benefit from this functionality. A solution that will be available to all market players using CB as of July 2023

FACTS 

• Adyen is expanding its offer and announcing the launch of a new feature developed in partnership with Cartes Bancaires (CB).

• MDC (Update CB Card Data) enables the automatic update of customers' banking data on merchant sites when their bank card expires.

• Adyen is the first payment service provider (PSP) to offer this functionality.

• Deezer is the first player in a pilot phase from February to June 2023.

• The offer should be available to all digital players from July 2023.

• This functionality is 100% secure and does not entail any additional costs for e-retailers.

CHALLENGES 

• Increase conversion rate and reduce churn : thanks to the automation of card updates, e-merchants benefit from a better conversion rate. End customers no longer need to re-enter their new credit card information, ensuring a seamless one-click payment experience.

• A solution to support the subscription business model : MDC CB is designed for players operating in the subscription economy, which have challenges mainly related to churn rates. A payer who has to manually update his card information on all registered sites often causes interruptions in his service and therefore his subscription.

• A pilot phase implemented at Deezer : to test this new offer, Adyen and Cartes Bancaires turned to Deezer France, which is well established in the subscription economy and internationally known. Deezer can now ensure the continuity of its users' subscriptions when their bank card expires, thus offering them a smooth user experience.

MARKET PERSPECTIVE 

• Beyond the extension of its platform, MDC CB is part of Adyen's ambition to support the development of e-commerce players in France and internationally. Recently, Adyen has launched several initiatives such as :

  • In March 2023, Adyen added Click to Pay to its online payment interface

  • In October 2022, Adyen partnered with Tink to create a new pay-by-bank solution that combines payment with Open Banking.

• On the CB side, the player has released some figures on 2021 through its Observatory:

  • 73.9 million CB cards in circulation

  • 6.3 billion contactless payments

  • 49,987 ATMS

  • 2.1 million CB merchant contracts

  • 13.2 billion payments, representing a volume of 535 billion euros

  • +65% of all household purchases in France are paid for with a CB card

• According to an IBM study, involuntary churn affects many SaaS customers:

  • In this study, 16% of respondents reported that their subscription was cancelled because they forgot to update their payment information.