Failure to adopt new payment methods minimises revenue streams for UK retailers, study warns
Despite 2015 set to be a big year for new payment trends with the growing popularity of Google Wallet, ApplePay and other m-payment methods, research suggests that only 40% of UK businesses are taking the plunge and offering customers any of these new ways to pay.
The research commissioned by electronic payment specialists, The PPRO Group
, found that despite high interest in innovative methods many businesses remain cautious to adopt them due to concerns around fraud, regulations and costs, which could impact potential business growth by limiting customer choice.
Nearly all of those businesses surveyed (95%) admitted that fraud is still a concern when it comes to online transactions. The impact of regulations were cited as the next highest concern for nearly nine out of ten businesses (87%), followed by an increase in cost (87%) and complexity of offering payment methods (83%).
Despite willingness to adopt additional payment methods, businesses are still wary of the wider and associated risks of doing so, which has the potential to stifle innovation and growth of retailers, both on and offline.
Tobias Schreyer, co-founder of The PPRO Group explains: “Whilst many businesses remain understandably cautious when it comes to the adoption of new payment methods, it is important for business growth, profit and reach, to embrace the coming changes in the payment industry, that are set to change the way we as individuals shop forever.”
“By taking a leap of faith and embracing these new methods, not only is a business prepared to accept more payments through both on and offline means, but this can lead to a reduction in shopping cart abandonment from home grown and overseas customers, and encourage successful global expansion. Retailers must be doing their utmost to proactively embrace innovation in retail technology to stand apart from competitors and win customers,” he continues.