Lack of payment options particularly turning young customers away
Over a quarter (28%) of people who abandon an online purchase do so because the website does not offer their preferred method of payment, according to a survey of 2,000 UK adults commissioned by digital payments experts Skrill. That figure rises to nearly a third (32%) of 18-24 year olds failing to convert into paying customers at the last hurdle.
The next generation of young adults appear to have different expectations when it comes to the availability of alternative payment methods. This group was some 8% higher than people aged 65 and above (24%) when abandoning a purchase at the final stage. 18-24 year olds are also more likely to use a digital wallet than any other age group, with 14% of young adults using them for every purchase they make, and a further 39% in this age group using them to pay regularly.
The survey highlighted that using a credit or debit card is still the most popular way for consumers (57%) to pay online. Digital wallets are the next most popular method (29%) followed by bank transfers (2%), text pay services (1%) and virtual currencies (1%). The findings demonstrate the significance of providing multiple payment options to consumers as a means for online businesses to drive growth.
Other major gripes that consumers cited as the cause of abandoned transactions, included the website being too slow to load or regularly crashing (43%); having to register for an account first (38%); the website asking for too much information (32%); not trusting that the website is secure (25%); realising the website was not UK-based (14%) or finally, being required to pay in a different currency (6%). Online businesses ignoring these bugbears could risk losing significant revenue.
Chantal Willis, VP eCommerce, Skrill:
“Growing numbers of consumers feel comfortable buying goods and services online and they want to be able to pay in the way that is familiar and convenient. Businesses in our towns and on our high streets already provide a variety of payment options for customers, so it seems odd they would not replicate this online. Imagine a supermarket unveiling a brand new store that looks great but only accepts cheques as payments.
“Our data shows while businesses are investing huge sums getting customers to the point of making a purchasing decision, they risk not completing the sale if they only accept card payments. They must ensure they have systems in place to cater for the half of the population who prefer alternative payment methods. Given online stores attract customers from anywhere in the world, the need to offer a wide range of payment options is absolutely crucial.”