Atlanta, GA, April 8, 2020 – Despite a growing focus on customer experience, online retailers are still falling short when it comes to the final stage of the online customer journey. Today, PPRO announces research findings that reveal over half of U.S. respondents (58%) would stop a purchase if the checkout process is complicated. These findings highlight the increasing need for retailers to address consumers’ payment preferences.
Millennials (those born 1980-1993) are the least tolerant of complicated checkout processes, with 53% agreeing they would be quick to abandon their purchases. And it’s not just complicated checkouts that are thwarting retailers’ chances of a successful sale. 42% of U.S. consumers state they would stop a purchase if their favorite payment method wasn’t available.
When asked about speed and convenience, 49% of Generation Z respondents (those born 1994-2001) agreed they would avoid using retailers that require entering payment credentials every time. Older generations show a higher tolerance, with only 30% of Baby Boomers (born 1946-1964) and 25% of the Silent Generation (born before 1946) expressing a preference to use merchants that offer one-click payments.
While convenience is clearly essential to consumers; retailers also need to accommodate the growing consumer awareness of information security. In fact, 53% of shoppers view the security of their data and money as most important when choosing a payment method.
On the topic of trust, 26% of U.S. consumers admitted that they rarely adopt new payment methods and prefer to stay with the payment methods they know. This reveals a considerable amount of U.S. consumers aren’t prepared to veer away from their preferred payment methods when shopping online. Retailers need to realize the importance of allowing their customers to make a purchase with their preferred payment methods. Or they run the risk of not only missing out on that single transaction but also losing a potentially loyal customer.
“With over 450 significant local payment methods in use across the globe, it can be a challenge for retailers to understand which ones to offer their customers. However, this research shows how crucial it is to offer the payment methods the customer prefers. It proves that the payment methods you offer can make a break or a sale. Currently, 82% of U.S. consumers have used debit and credit cards for online purchases. 79% also confidently use PayPal or have used it in the past. 44% are confident in using mobile wallets, such as Apple Pay and Google Pay, and the use of bank transfers has doubled in the last 3 years. There’s a surprising range merchants must consider at the payment page to improve conversion rates,” comments James Booth, VP Head of Partnerships, EMEA at PPRO.
“Retailers need to be aware that a slick user experience must extend to the point of purchase. A shop may have a personalized and easy-to-navigate website, but a shopper who isn’t satisfied with the payment methods available at the final stage will quickly move on to a competitor,” adds Booth.
1000 interviews were completed in the USA and 1000 interviews were completed in the UK by Arlington Research in February 2020, an independent market research agency, using a nationally representative sample of 2000 adults aged 18+ regarding gender, age and region. Quotas were applied so that the research is nationally representative of adults aged 18+ years old in each country surveyed based on gender, age and region (+/-2%). Minimal weighting has been applied for gender, age and region in the USA.
Generation age range classifications:
● Generation Z: respondents born between 1994 – 2001
● Millennials: respondents born between 1980 – 1993
● Generation X: respondents born between 1965 – 1979
● Baby Boomers: respondents born between 1946 – 1964
● Silent Generation: respondents born before 1946
Leading local payments platform PPRO removes the complexity of cross-border and domestic digital payments by acquiring, collecting and processing an extensive range of local payment methods for Payment Service Providers under one contract, through one platform and one single integration.
PPRO supports local payment methods across more than 100 countries, allowing Payment Service Providers to expand their merchants’ consumer reach, arrange hassle-free collection and achieve higher conversion rates. Currently, PPRO has integrations with around 160 PSP partners with approximately 200,000 merchants on its platform. Founded in 2006, PPRO is a global financial institute with an e-money license issued by the British regulatory body FCA.