By Jeremy Nicholds, CEO, Judopay.
When mobile companies such as Samsung, Google and Apple integrated payment capabilities into their smart devices, they allowed customers to shop at their convenience, quite literally from the palms of their hands. The advent of wearable devices, such as smartwatches and other technology in the mobile age has also made it easier for users to make payments on the move.
From our research, UK customers’ frame of mind around mobile payments, especially amongst millennials, is increasingly optimistic. Our findings show that UK shoppers have a positive outlook about mobile payments when it comes to three aspects: speed, convenience and flexibility, and with the current coronavirus crisis there is a much higher appreciation of the hygiene benefits also.
30% of UK consumers choose to pay by mobile because it’s quicker. Over a quarter (27%) of UK consumers choose to pay by mobile because they think it’s the most convenient channel. Further to that, in terms of flexibility, nearly 1 in 3 UK millennial consumers (30%) choose to purchase via mobile because it allows them to ‘pay on the go’.
In today’s market, mCommerce is a vital sales channel for any business. However, in a saturated and competitive marketplace, it’s important to understand customer feelings and interactions around making mCommerce payments. Merchants must not neglect payments because it impacts the buying choices and decisions that consumers make. If payments aren’t a focal point and customer needs are not satisfied, this could be the very reason businesses lose out on potential sales and revenue.
Trust in mobile payments
A better customer experience is key if mCommerce businesses are to have an edge over their competitors. If the mobile payments checkout process doesn’t meet consumer expectations, it will leave them frustrated, which subsequently, will lead to cart abandonment and lost sales.
So, what are some of the issues that leave customers frustrated with mobile payments? Amongst mobile users, trust is the biggest issue in relation to use of data. An overwhelming 61% of respondents think that shopping through mobile will increase the likelihood of big tech companies (e.g. Facebook and Google) having access to their data. With only 5% of people choosing to pay by mobile because they feel it’s more secure than PC.
So, the dilemma for businesses is how to deliver a great user experience, whilst at the same time ensuring customers feel safe without creating more friction by adding extra layers of security.
Ultimately, this comes down to striking a balance between user experience (UX) and security. And to master this art, businesses need to partner with all the right stakeholders, across security, payments, design and marketing.
High expectations for a speedy service
Customer satisfaction is one of the most important factors for any business. When it comes to mobile payments, customers expect the checkout to be quick and easy to complete. A slow or poorly designed checkout can result in cart abandonment and potentially damage customer loyalty.
We found that when consumers make a purchase on their phone, they expect the payment to be seamless and instantaneous. When the payment process becomes too slow, our research indicates that 1 in 6 UK consumers will cancel their purchase. Overall, the average drop-off rate at mobile checkout is still 69%. Also, almost a third of UK consumers have expressed that nothing frustrates them more than when a merchant’s mobile payment process doesn’t work or is too slow.
It’s clear that consumers want mobile checkouts to be fast, especially in a world where technology has set high expectations by speeding up processes, giving consumers instant consumption and gratification via their smart devices. This is what businesses need to keep in mind when it comes to customer service.
Appealing to all generations
Millennials are more connected to technology than any other previous generation and are a driving force behind exciting emerging technologies. And they don’t have the same data hangups. 49% of Generation Z and 47% of millennials are comfortable with the companies that they buy from having their data to help improve their next shopping experience. The challenge for businesses is getting this level of comfort around security, across all generations.
Alongside this, the customer checkout journey must be as simple, quick and intuitive. User experience is everything when shopping online, and businesses need to consider ways in which the older generations can appreciate the benefits of digital payments.
Mobile Payments in the UK
In the UK, although growing fast we are still in the early stages of adoption of mobile payments. With the current coronavirus crisis we are likely to see increased adoption but, if we want more UK customers to embrace it wholeheartedly, businesses need to ensure they provide a quick, secure payment service to drive this.
In these unprecedented times, COVID-19 is changing the way we live our lives – forcing the general population to self-isolate and work from home. Retailers and businesses are having to shut physical shops and are shifting their operations online.
Our lives now depend on using cashless methods of payments, in part because cash doesn’t work for online transactions and in part because cash transactions are seen as ‘dirty money’ due to the fact that the virus can latch on to the material the same way it does on door handles or other surfaces. That also goes for ATMs, debit and credit cards.
So, during this time, we should see an increase of UK residents and businesses becoming more comfortable with using mobile payments, which is why payments should be a top priority.
Global Banking & Finance Review
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