Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

CONVENIENCE AND SECURITY CONCERNS DRIVE THREE-QUARTERS OF BRITS TO ABANDON ONLINE PURCHASES

  • The UK is Europe’s largest ecommerce market, with sales exceeding £130bn in 2016[1]
  • Nine out of 10 millennials have used their mobile phone to make a purchase

Visa Inc. (NYSE:V) research launched today has shed light on the online “basket anxiety” sweeping the nation.The study, which looked at the spending habits of 1,000 UK online shoppers, reveals nearly three quarters (72%) of British online shoppers have abandoned their shopping baskets on retailer websites and apps due to finding the payment process tedious or concerns over online security.

Of those who have abandoned their basket mid-purchase, more than three-quarters (76%) cite concerns over sharing personal information with unfamiliar sites as a key reason. Three in five (59%) also say that going through additional payment steps had prevented them from completing a purchase.

Despite these concerns, recent figures show more than £130bn[2] was spent on online purchases in the UK in the last 12 months – a figure that has been increasing year-on-year. Two-thirds (66%) of millennials, those aged 18 to 34 years, now spend as much on websites and apps as on the high street.

Kevin Jenkins, Managing Director of Visa UK and Ireland, said:

“The UK leads Europe in ecommerce sales, with mobile shopping in particular experiencing rapid growth. But, with so many consumers abandoning baskets during the buying process, there is a clear need for new, easy, secure ways to pay. Retailers who are able to address consumer concerns in relation to the security and convenience of the payments process will avoid losing out on sales. Furthermore, they will tap into the vast opportunities offered by online retail. Visa Checkout, recently launched in the UK and Ireland, addresses online shopping needs by removing the need for consumers to fill in forms with personal and payment information every time they shop online.”

Although millennials have been particularly enthusiastic adopters of online shopping and trialling different payment methods, the findings shed light on their increased tendency to abandon purchases during the shopping process. Nine out of 10 millennials say they have made purchases using a mobile device, compared to a national average of just 67%. However, this younger group are also 10% more likely to abandon a purchase; more than four in five (82%) having done so. 

With mobile technology providing faster and more convenient ways to pay for purchases on the go, companies offering online food delivery and streaming are particularly popular among the younger generation. Eighty-five per cent of millennials have ordered takeaway food online, while the same number have bought online home entertainment products, such as on demand streaming. By contrast, only 52% of the overall population had ordered takeaway online, while 74% had purchased home entertainment services.

Of those who do order takeaway food through their web browser or an app, the majority (60%) will abandon their purchase if it takes longer than five minutes. Just 22% of online shoppers would be willing to wait longer than 10 minutes. Similarly, 55% will abandon home entertainment purchases after five minutes, while more than three quarters (76%) give up if the purchase takes 10 minutes or more.

Jenkins continued: “As shoppers spend even more online, in terms of frequency and value, the balance that needs to be struck between speed and security has become even finer. Younger consumers expect a quick, hassle free payment experience, wherever and however they shop.

 “Visa Checkout is more convenient for customers but also keeps details safe and secure in one place. We are actively working with leading retailers to bring the benefit of this faster, quicker and secure way to pay to more online shoppers in the UK and Ireland.”

[1]IMRG CapgeminieRetail Sales Index 2016

[2]Ibid