UK retailers are losing an estimated GBP 8 billion in revenue due to a lack of payment options online, according to research from Adyen.
The report commissioned by Adyen with 451 Research surveyed 811 UK consumers and 95 senior decision makers in Q1 2019. The survey was designed to better understand their shopping experiences, preferences, and behaviours, as well as to learn about their expectations for retailers and their shopping desires. The survey was fielded evenly between males and females with a high school and above education level.
The research found that customers being unable to pay with their preferred payment methods – such as digital wallets or international cards – lead to billions of pounds in abandoned purchases. The findings demonstrate the need for retailers to take steps to expand their checkout options, given that online shopping accounts for almost 20% of all UK purchases.
However, it’s not just a lack of payment options leading to abandoned carts. Additional barriers such as lengthy payment forms and falsely declined transactions are costing retailers GBP 257 billion globally.
Currently, 43% of UK retailers are unhappy with the performance of their online channel but just 34% are implementing a digital transformation strategy. Only 34% ranked improving the checkout experience as their highest digital initiative. By not offering a streamlined checkout experience and a wide range of payment options, retailers are missing out on a significant source of income – 57% of Brits said that fast and convenient payment options would increase their loyalty to a retailer.
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