UK online retail businesses could have increased their weekly gross sales by £207m during the month of May if failed payments had not taken place, according to BR-DGE’s failed payments calculator.
The latest ONS retail data released today shows weekly online retail spending in May 2022 was £2.243 billion. Yet, fragmented payments systems, put under increasing pressure by the massive growth in digital payments, can result in failed transactions and unprocessed baskets. If this was eradicated, May’s weekly online spending would have been £2.45bn. Furthermore, with intelligent routing and a greater commercial leverage, through payment orchestration platforms like BR-DGE, online retailers could further gain on operating margins.
Jacob Spencer, Head of Commercial at payments firm BR-DGE says: “This latest set of figures will make for tough reading amongst hard hit retailers who have been impacted by the double blows of increased costs and tightening consumer purse strings. However, more positively for e-commerce businesses, the data shows that they could have generated around £207 million extra each week in May if customer failed payments hadn’t taken place.”
“Online sales are a core part of UK retail’s recovery but, with 65% of retailers not receiving detailed failed payments data, many merchants are unaware of the impact that failed payments has on their business. BR-DGE technology allows online retailers visibility around their failed payments data and empowers retailers with a range of payments solutions for consumers via a single API integration. Online retailers must prioritise finding payment solutions that integrate multiple providers and payment methods in order to avoid ongoing failures and support online shoppers with the technology to pay how they want.”