Time to hit refresh: retailers risk frustrating online shoppers with out-of-date payment technology
- Research from Barclaycard reveals that more than seven in ten retailers haven’t introduced any new payment technology to their website in the last two years
- An out-of-date payment process could lead to abandoned sales, shown to cost retailers £18bn per year, as shoppers increasingly value speed and ease online
- Retailers who have invested are reaping rewards: 96 per cent say this has enhanced the online experience for customers
- Barclaycard’s Smartpay ecommerce technology makes the payment process quick and secure for shoppers and merchants, helping to increase online conversion
New research from Barclaycard reveals that more than seven in ten retailers (72 per cent) haven’t introduced any new payment technology to their websites over the last two years*, despite consumer demand for a quick and convenient check-out process.
While 86 per cent of retailers say they are looking to increase online transactions over the next 12 months, the study suggests that many aren’t providing the best possible ecommerce experience for their customers. Keeping payment technology up-to-date helps retailers provide shoppers with a fast and easy experience at the online point of sale and could help drive revenue by reducing online abandonment.
This comes as the study shows that retailers could be missing out on £18 billion** in sales each year, as consumers abandon online baskets worth almost £30 a month. Barclaycard research also shows that 15 per cent of shoppers have chosen to abort an online purchase because they couldn’t pay using methods such as ‘one-click’ ordering, while 16 per cent highlight long checkout processes as their biggest frustration when buying online***. One in five (22 per cent) consumers also say they would like to see more retailers incorporate faster payments technology into their websites to speed up the check-out process.
Meanwhile, retailers who buck the trend and have introduced new payment technology to their website – for example, a new payment gateway, which provides a secure online link between a merchant and a bank – are reaping the rewards. Almost all (96 per cent) say this has enhanced the online experience for their customers, and 64 per cent say payment processing is faster.
Meeting expectations for a quick and easy payment experience will be crucial if merchants are to meet their ambition to increase online sales over the next year. Barclaycard’s Smartpay gateway – a service merchants can use to capture ecommerce payments – offers retailers an easy-to-integrate solution that makes the payment process fast and secure for customers and merchants alike. Barclaycard Smartpay helps to boost sales and customer loyalty by enabling features such as one-click ordering, and provides merchants with rich data and insight into customer behaviour across all sales channels.
These insights can help merchants identify the best strategies for re-engaging shoppers who have abandoned a purchase. The research shows, however, that many vendors are missing the data or insights they need to increase conversion: six in ten retailers (59 per cent) are unaware of the average buyer drop-out rate on their website and just 27 per cent analyse the browsing behaviour of shoppers who abandon their baskets.
George Allardice, Head of Strategy, Barclaycard Payment Solutions, commented:
“Today’s customers are increasingly time-poor and expect the online shopping experience to be as hassle-free as possible. Retailers spend time and money to develop engaging ecommerce sites, but they could still miss out on revenue if the customer drops out of the purchase because of disappointment with the payment process.
“Upgrading to a modern payment platform, such as Barclaycard’s Smartpay gateway, means merchants can offer their customers the seamless check-out experience they now expect. This could, in turn, reduce basket abandonment and increase sales.”
Notes to Editors
*Consumer research was conducted by Opinium surveying 2,001 adults (18+) from 26/03/2018 – 03/04/2018 with a sample of 2,004 people who have abandoned an item online. Merchant research was conducted by Opinium surveying 314 senior managers in retail (companies with an online presence) from 26/03/2018 – 05/04/2018.
** £18,242,309,693. Figure calculated by multiplying the abandoned basket per person per month by 12 and multiplying by the total population (18+).
*** Online interviews were carried out with 253 decision makers within B2C SME retailers between 31 March and 1 April 2017. A separate study of 2,010 adults aged 18+ (nationally representative) was conducted between 4th and 7th April 2017. All research was carried out by Opinium Research.
For more information, please contact Chloe Wilkinson at Barclaycard on Chloe.Wilkinson@barclaycard.co.uk or 020 3555 4036.
Barclaycard, part of Barclays Bank PLC, is a leading global payment business that helps consumers, retailers and businesses to make and take payments flexibly, and to access short-term credit and point-of-sale finance. In 2016 we processed over £250bn in transactions globally. Barclaycard is a pioneer of new forms of payment and is at the forefront of developing viable contactless and mobile payment schemes for today and cutting-edge forms of payment for the future. We also partner with a wide range of organisations across the globe to offer their customers or members payment options and credit.
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