Online retailers must offer payment flexibility or risk losing sales, according to new research. The study by takepayments, a digital payment solutions provider, found debit and credit cards remain the dominant online payment method for UK shoppers, preferred by 63% of UK consumers – but nearly a third of customers (31%) now prefer to pay using digital or mobile wallets.
The research, which surveyed 2,000 UK consumers, found that 17% prefer mobile wallets like Apple Pay, and 14% opt for digital wallets such as PayPal or Amazon Pay. Perhaps surprisingly, Buy Now Pay Later (BNPL) remains niche, with just 3% of shoppers choosing it as their preferred method.
Speed and simplicity are the top reasons for payment preference: 65% of those surveyed said they choose their method because it’s quick and straightforward, while 34% value fast transaction times, and 31% want to use a method that’s widely accepted.
Gen Z leads the mobile wallet charge
Age plays a significant role in payment habits. 77% of over-55s prefer cards, while 42% of 18–24s favour mobile wallets, even ahead of cards (39%). Gender differences are subtler, with men more likely to choose cards (67% compared to 58%) and women slightly more inclined than men toward mobile (19% compared to 14%) and digital wallets (15% compared to 13%).
For retailers, offering customers their preferred method of payment is critical; 44% of UK consumers say they would abandon a purchase if their preferred payment method isn’t available. This is supported by the takepayments research, which found that around 15% of shoppers say they wouldn’t complete a purchase if their preferred mobile or digital wallet option wasn’t available. Nearly half (46%) have no preference, and around one in three shoppers (34%) say they would still buy from an online store that didn’t accept mobile or digital wallets, but it would be an inconvenience.
However, with the research finding that nearly 30% of consumers say that having to input card details is the most annoying part of online payments, the quicker option of using digital or mobile wallets is likely only to increase.
Convenience higher priority than security
Security remains a priority, with 72% of shoppers looking for Verified by Visa or Mastercard SecureCode, and many valuing secure gateways and two-factor authentication. However, as Rona Warne, head of marketing UK&I at Global Payments (takepayments is now a Global Payments company), commented: “It’s clear that speed and convenience still win over security for many online shoppers. People want a checkout that works quickly with as little friction as possible, which is why mobile wallets keep growing in popularity. But just as important is giving your customers a choice. Not everyone trusts or wants to use the same payment method every time.”
In the world of online retail, convenience is still king. Retailers who streamline checkout while offering consumers their favoured, trusted payment method will be best placed to convert browsers into buyers. With BFCM and the holiday season looming – and accounting for a significant portion of annual revenue – retailers must ensure their payment options reflect customer expectations or risk losing vital sales.
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