New research released reveals retailers are missing a huge opportunity to increase sales by failing to address customer payment pain points. Most retailers admit a poor payment experience is a key reason for lost sales, but only 27% are investing to prevent these issues.
Adyen’s Retail Therapy Report surveyed more than 2,200 consumers and 500 retailers. The report found that payment problems appear to be a well-understood issue within the retail market, with 85% citing poor payment experiences as key reason for lost sales.
Nearly half (45%) of all consumers abandon in-store purchases and a third (32%) log off without buying anything because of payment difficulties. But, despite this, more than a quarter (27%) of retailers are not preparing to invest further in their in-store payment methods, despite growing enthusiasm among shoppers for mobile payments.
And retailers are failing to invest in technology to make this happen. According to the report, 21% of retailers still have no online shopping option, driven by what they see as a lack of interest. The report does show that some 40% of shoppers have never purchased on an app and 75% have never shopped on social media. But this will change.
“Consumers want their shopping lives to be as hassle-free as possible. While some people still enjoy the social occasion of shopping, most just want to pick their items, pay for them and leave. Streamlining the payments process will not only close more sales, it will win loyal shoppers,” says Myles Dawson, UK Country Manager for Adyen.
When asked why they had abandoned their online purchase, 32% of customers cited lengthy payment processes as their number one reason. This was followed by the poor implementation of chosen payment method, (25%) and the lack of relevant payment options. The same is true for in-app payments, with customers citing payment options as the top reason for abandoning their baskets.
“Understanding how to deliver a great payment experience is critical to closing sales,” Dawson adds. “It’s no longer a question of cash or card, shoppers want a variety of payment methods, from pre-paid wallets to mobile methods. With so many new payment options emerging, retailers need to work with a provider that can help them keep up with consumer expectations. Get payments right, and you’ll have an edge over the competition, but you must act now to have the advantage.
As we approach the biggest shopping period of the year with Black Friday, Cyber Monday and the general festive rush, retailers can help boost their customers’ shopping experience during a generally stressful time. By delivering a range of payment options that can streamline the purchasing process, retailers stand to be in a better position to appeal to customers,” concludes Dawson.