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

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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

Business

Sunak to raise business tax to pay for COVID-19 support – The Sunday Times

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Sunak to raise business tax to pay for COVID-19 support - The Sunday Times 1

(Reuters) – British finance minister Rishi Sunak is set to increase a tax on business to pay for an extension to COVID-19 support schemes in the budget next month, The Sunday Times reported https://bit.ly/3ujaBcU.

Sunak, in his speech on March 3, will announce he is increasing corporation tax from 19 pence in the pound and will outline a pathway where it rises to 23 pence in the pound by the time of the next general election, the report said. The move will raise an expected 12 billion pounds ($16.8 billion) a year, the report added.

According to the report, at least 1 pence is set to be added to the bill for business from this autumn, at a cost to business of 3 billion pounds, with further rises in subsequent years.

Allies of Sunak clarified he would not increase corporation tax higher than 23%.

These measures will be helpful in paying for an extension to the furlough scheme, VAT cuts and business support loans until at least August.

Unlike the 2010 Conservative-led government, which pursued spending cuts to rebalance the economy after the global financial crisis, Sunak is expected to defer most of the toughest decisions about how to pay for that support in his budget speech.

“The corporation tax hike will be higher than expected and the extension of the support schemes will be longer than most people expect,” the newspaper quoted a source as saying.

Insiders indicated the stamp duty holiday on property purchases would also be extended in line with the other coronavirus support measures, the report said.

Britain’s economy had its biggest slump in 300 years in 2020, when it contracted by 10%, and will shrink by 4% in the first three months of 2021, the Bank of England predicts.

($1 = 0.7136 pounds)

 

(Reporting by Vishal Vivek in Bengaluru; Editing by Lincoln Feast.)

 

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Foxconn chairman says expects “limited impact” from chip shortage on clients

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Foxconn chairman says expects "limited impact" from chip shortage on clients 2

TAIPEI (Reuters) – The chairman of Apple Inc supplier Foxconn said on Saturday he expects his company and its clients will face only “limited impact” from a chip shortage that has rattled the global automotive and semiconductor industries.

“Since most of the customers we serve are large customers, they all have proper precautionary planning,” said Liu Young-way, chairman of the manufacturing conglomerate formally known as Hon Hai Precision Industry Co Ltd

“Therefore, the impact on these large customers is there, but limited,” he told reporters.

Liu said he expected the company to do well in the first half of 2021, “especially as the pandemic is easing and demand is still being sustained.”

The global spread of COVID-19 has increased demand for laptops, gaming consoles, and other electronics. This caused chip manufacturers to reallocate capacity away from the automotive sector, which was expecting a steep downturn.

Now, car manufacturers such as Volkswagen AG, General Motors Co and Ford Motor Co have cut output as chip capacity has shrunk.

Counterpoint Research says the shortage has extended to the smartphone sector, with application processors, display driver chips, and power management chips all facing a crunch.

However, the research firm predicts Apple will face a minimal impact, due to its large size and its suppliers’ tendency to prioritise it. Apple is Foxconn’s largest customer.

Foxconn is looking at other areas for growth, including in electric vehicles (EVs), and Liu said their EV development platform MIH now had 736 partner companies participating.

He expected it would have two or three models to show by the fourth quarter, though did not expect EVs to make an obvious contribution to company earnings until 2023.

Liu also said the company was still looking for semiconductor fab purchase opportunities in Southeast Asia after not winning a bid to take over a stake in Malaysia-based 8-inch foundry house Silterra.

(Reporting by Ben Blanchard and Jeanny Kao; Writing by Josh Horwitz; Editing by William Mallard and Ana Nicolaci da Costa)

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EU seeks alliance with U.S. on climate change, tech rules

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EU seeks alliance with U.S. on climate change, tech rules 3

By Sabine Siebold and Kate Abnett

BERLIN (Reuters) – Europe and the United States should join forces in the fight against climate change and agree on a new framework for the digital market, limiting the power of big tech companies, European Union chief executive Ursula von der Leyen said.

“I am sure: A shared transatlantic commitment to a net-zero emissions pathway by 2050 would make climate neutrality a new global benchmark,” the president of the European Commission said in a speech at the virtual Munich Security Conference on Friday.

“Together, we could create a digital economy rulebook that is valid worldwide: a set of rules based on our values, human rights and pluralism, inclusion and the protection of privacy.”

The EU has pledged to cut its net greenhouse gas emissions to zero by 2050, while President Joe Biden has committed the United States to become a “net zero economy” by 2050.

Scientists say the world must reach net zero emissions by 2050 to limit global temperature increases to 1.5 degrees above pre-industrial times and avert the most catastrophic impacts of climate change.

The hope is that a transatlantic alliance could help persuade large emitters who have yet to commit to this timeline – including China, which is aiming for carbon neutrality by 2060, and India.

“The United States is our natural partner for global leadership on climate change,” von der Leyen said.

She called the Jan. 6 storming of the U.S. Capitol a turning point for the discussion on the impact social media has on democracies.

“Of course, imposing democratic limits on the uncontrolled power of big tech companies alone will not stop political violence,” von der Leyen said. “But it is an important step.”

She was referring to a draft set of rules unveiled in December which aims to rein in tech companies that control troves of data and online platforms relied on by thousands of companies and millions of Europeans for work and social interactions.

They show the European Commission’s frustration with its antitrust cases against the tech giants, notably Alphabet Inc’s Google, which critics say have not addressed the problem.

But they also risk inflaming tensions with Washington, already irked by Brussels’ attempts to tax U.S. tech firms more.

Von der Leyen said Facebook’s decision on a news blackout on Thursday in response to a forthcoming Australian law requiring it and Google to share revenue from news underscored the importance of a global approach to dealing with tech giants.

(Additional reporting by Foo Yun Chee; editing by Robin Emmott and Nick Macfie; editing by Jonathan Oatis)

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