Preferred payment method is the number one factor among UK online shoppers that leads to a positive shopping experience, with more than 49% of all online shoppers most likely to abandon the purchase if their preferred payment method is not available.
So finds a study by DECTA, which showcases how adoption of embedded finance leads to higher conversion rates and positive customer experience. For this, DECTA conducted a survey among British online shoppers aged 19-68 and US shoppers aged 23-68 years totalling 1504 respondents.
The report also delves into the main reasons why consumers may abandon their online shopping journey and explores the potential of additional revenue streams that online retailers can gain through the adoption of embedded finance.
Behind making sure that the right payment types are available, payment speed is the second most important feature for positive consumer experiences among UK shoppers, with 68% of those surveyed considering it to be either the most important feature of positive experience, or very important in this process.
Failure to provide a straightforward and convenient checkout process could be a major bugbear, with Baymard Institute reports that $260 billion of lost orders are recoverable annually solely through a better checkout flow and design.
Embedded solutions, such as instalment payments and insurance offers are on the rise in the USA: these add-ons were seen as a rather more important aspect of purchasing decisions. Indeed, 54% of respondents reported that insurance has been either very important or the most important factor for a positive purchasing experience.
Frictionless purchases can be extremely important for positive customer experience, and this is critical as online purchasing becomes more complex and regulated. Statistics show that reducing customer friction is a $213 billion opportunity for businesses in the United States alone. As technology and expectations evolve, the importance of delivering a smooth purchasing model and experience is increasing in importance.
Loyalty Rewards is another $1.6 trillion opportunity that embedded finance functionality can deliver for online merchants, with 90% of companies in the United States having loyalty programmes, collectively representing a staggering 3.3 billion memberships.
