PPRO research has revealed that retailers risk losing 44% of UK consumers if they do not offer preferred payment methods.
The report also showed that over half of UK respondents (58%) said they would stop a purchase if the checkout process is complicated.
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By GlobalDataJames Booth, VP head of partnerships, EMEA at PPRO, said: “With over 450 significant local payment methods in use across the globe, it can be a challenge for retailers to understand which ones to offer their customers. However, this research shows how crucial it is to offer the payment methods the customer prefers. It proves that the payment methods you offer can make a break or a sale.
“Currently, 91% of UK consumers have used debit and credit cards for online purchases. 89% also confidently use PayPal or have used it in the past. 31% are confident in using mobile wallets, such as Apple Pay and Google Pay, and the use of bank transfers has doubled in the last three years. There’s a surprising range merchants must consider at the payment page to improve conversion rates.”
Changing consumer behaviour
Millennials are the driving force behind this change in consumer behaviour – 67% agreed they would abandon their purchases if the checkout process was not easy.
In addition, 51% of Generation Z respondents said they would stop using retailers that require entering payment details every time. Older generations showed a higher tolerance, with 30% of Baby Boomers and 25% of the Silent Generation preferring one-click payments.
Booth added: “Retailers need to be aware that a slick user experience must extend to the point of purchase. A shop may have a personalised and easy-to-navigate website, but a shopper who isn’t satisfied with the payment methods available at the final stage will quickly move on to a competitor.”
The report also highlighted that security remains the biggest worry for consumers when shopping online. Over half (59%) of shoppers said the security of their data was most important when choosing a payment method.
Furthermore, 30% of UK consumers admitted they rarely adopt new payment methods and prefer to stick with methods they know.
Arlington Research carried out the survey, interviewing 1000 US consumers and 1000 UK consumers.