Online retailers in the UK lose more than £1.8 billion (€2.13 billion) annually due to the lack of payment methods available for their customers. New research shows the importance of offering multiple payment methods on websites of online stores.
20% abandon the purchase if they cannot pay with their preferred payment method
Twenty percent of respondents admitted that every time they cannot pay with their preferred payment method, they abandon the purchase. When they were asked to estimate the value of the items they dropped each month, the average answer was €17.5.
Therefore, Merchant Advice Service estimated that online retailers lose as much as €2.13 billion annually. This is due to the lack of available payment methods. Moreover, one fifth of respondents admit to abandoning about €210 worth of products online per year
Frustration with a lack of payment options
67% find it frustrating when there is a lack of payment methods available. In addition, 54% of them are discouraged to complete an online purchase if the payment options are only debit or credit card details.
Furthermore, the majority (71%) said they prefer PayPal when asked about their payment preferences. This is closely followed by 67% who tend to use digital wallets like Apple Pay and Google Pay. However, 24% also wanted to see ‘buy now, pay later’ payments, such as Klarna and Clear Pay.
Offering alternative payment options can help generate more sales
Offering alternative payment options to credit or debit cards can help online retailers generate more sales. By limiting the payment methods, retailers are equally limiting their chances of a sale if customers are unable to pay using their preference.
To avoid customers falling at the final stage of checkout, retailers need to consider adding payment methods that make the online shopping experience as seamless and hassle-free as possible, by offering one-click payments and more.