Online checkout frustration ‘costing millions’

man paying online with visa card
Businesses may be losing up to £656 million in missed revenue as a result of bad experiences at an online checkout.<p>

Shoppers objected to manually inputting their card details in many cases. In others, merchants refused to accept the payment methods chosen and blocked others because they suspected fraud.

Most of the abandoned sales were those involving anything from £21-£60 and £61 and £100, with the average value of a discarded shopping basket sitting at £30, according to a poll of 2,000 which found that half of them had ditched at least one online purchase in the past 12 months.

The age group most likely to become impatient and give up were those aged 16 to 34.

The findings come at a time when getting consumers to spend is already tough and profit margins for businesses are tight.

Reports recently published by the Confederation of British Industry and Office for National Statistics suggest that organisations can expect March to record a slump in retail sales following a month-on-month drop in online sales since January.

The research also revealed that payment headaches don’t stop at the online checkout, say authors at the open banking platform Yapily.

In times like these, payments are becoming a more critical and strategic focus for every business

Overall, nearly eight in ten felt frustrated when it came to making and receiving digital payments. Over a third said refunds taking a long time to appear in their accounts annoyed them the most, whilst two in ten said their main grievance was not knowing what dates payments will leave their account.

Four in ten told researchers they want to see businesses offer more convenient and easier payment methods at checkout, with a similar number saying they would use a Pay-by-Bank app, product or service, which enabled them to instantly send and receive money directly from their bank account.

Online banking Businesses point out they also benefit from using open banking payments, cutting out costly interchange fees, reducing fraud risk, and boosting conversion rates.

Yapily CEO Stefano Vaccino, said: “In times like these, payments are becoming a more critical and strategic focus for every business. New payment innovations like open banking are enabling businesses to realise this, transforming payments from a cost-reduction exercise into a way to increase performance and grow revenue.

“To stop poor payer experiences eating into their profits, businesses and payment service providers should listen to what consumers and merchants are asking for – a faster, cheaper, and more secure way to pay.”


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