Thursday, July 18, 2024
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    Merchants could lose almost half of customers if they don’t offer variety of payment tools

    Some 44% of UK consumers say that they would stop a purchase of anything online or on mobile if their favourite payment method wasn’t available.

    When asked in a survey by PPRO about speed and convenience, 51% of Generation Z respondents agreed that they would avoid using retailers that require entering payment credentials every time.

    Older generations show a higher tolerance, with only 30% of Baby Boomers (born 1946-1964) and 25% of the Silent Generation (born before 1946) expressing a preference to use merchants that offer one-click payments.

    Almost two thirds of UK shoppers (58%) would stop a purchase if the checkout process is complicated – with millennials even less tolerant of complicated checkout processes, with 67% agreeing they would be quick to abandon their purchases.

    While convenience is clearly essential to consumers, retailers also need to accommodate the growing consumer awareness of information security. In fact, 59% of shoppers view the security of their data and money as most important when choosing a payment method.

    On the topic of trust, 30% of UK consumers admitted that they rarely adopt new payment methods and prefer to stay with the payment methods they know. This reveals a considerable amount of UK consumers aren’t prepared to veer away from their preferred payment methods when shopping online.

    Merchants need to realise the importance of allowing their customers to make a purchase with their preferred payment methods. Or they run the risk of not only missing out on that single transaction but also losing a potentially loyal customer.

    “With more than 450 significant local payment methods in use across the globe, it can be a challenge for retailers to understand which ones to offer their customers,” says James Booth, VP Head of Partnerships, EMEA at PPRO. “However, this research shows how crucial it is to offer the payment methods the customer prefers. It proves that the payment methods you offer can make a break or a sale. Currently, 91% of UK consumers have used debit and credit cards for online purchases. 89% also confidently use PayPal or have used it in the past. 31% are confident in using mobile wallets, such as Apple Pay and Google Pay, and the use of bank transfers has doubled in the last 3 years. There’s a surprising range merchants must consider at the payment page to improve conversion rates,”

    He concludes: “Merchants and retailers need to be aware that a slick user experience must extend to the point of purchase. A shop may have a personalised and easy-to-navigate website, but a shopper who isn’t satisfied with the payment methods available at the final stage will quickly move on to a competitor.”

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