40% of shoppers are ditching websites with poor payments processes, according to research published today by Vyne.
The specialist account-to-account payments platform has today launched a new report, Retail payments reinvented: how consumer demand is changing, which explores online payments preferences of 2,002 British consumers following a 43% rise in e-commerce sales since the onset of the pandemic.
The report reveals that just 40% of respondents feel that retailers always meet their payment expectations. Regular online shoppers are abandoning their baskets at least once a month, citing hidden charges and frustration at inputting lengthy card details as the chief reasons for doing so.
The research also exposed dissatisfaction with the refunds experience. Over 2 in 5 (43%) respondents who have requested a refund for an online purchase have had to chase for a refund, leaving them feeling frustrated and angry at the retailer.
Karl MacGregor, CEO and Co-founder of Vyne, says: “Online shopping has reached unprecedented levels of popularity, but the payment options at checkout have remained stagnant and stacked against the consumer. Our research has indicated that a poor payments experience could limit growth for many online retailers, with consumers being unafraid to abandon their baskets and shop elsewhere if their expectations for clear, simple payments are not met. Despite the fintech industry transforming payments processes in recent years, retailers are not keeping pace by adopting these next-generation technologies.’
British consumers also indicated a clear willingness to try new methods of payment. 66% of respondents are open to trying out new ways to pay online, with 70% saying that their ideal payment method would offer instant refunds and no ‘pending’ payments. The research also indicated a desire for more transparency with the payments process, in which consumers can instantly see their updated bank balance after making a purchase or requesting a refund.
Luke Flomo, Chief Revenue Officer at Vyne, adds: “It’s time for a more modern, transparent and seamless approach that benefits buyers and sellers in a transaction. Open Banking presents a golden opportunity to overhaul the traditional payments infrastructure that buyers have been beholden to for decades, as well as save retailers from expensive card schemes.”