Balancing convenience and security is key to boosting trust among Europe’s online shoppers

Online shopping has become the norm for consumers. In just a few decades, it has gone from a niche way to buy goods to a multi-billion-dollar industry, with revenue from the European e-commerce sector alone expected to hit $707.9 billion this year.

As the industry has grown, so has the competition within it, as merchants and e-commerce platforms vie to lure customers with a comprehensive and seamless shopping experience. 

One area of fierce competition is payment methods, with platforms striving to cater for the ever-growing and diverging preferences of consumers. But what has become clear is that how shoppers choose to pay is far more intentional than many businesses may actually realise. 

Understanding the reasons behind these decisions can help merchants and other businesses boost conversion rates and grow their market share. Our latest report reveals that e-commerce is now a part of everyday life for European shoppers, with around half (48%) now shopping online weekly.  

Convenience trumps habit

Consumers overwhelmingly cite speed (46%), convenience (44%), and security (41%) as the top motivations when choosing a payment method, more so than habit (21%) or widespread acceptance (29%). This suggests consumers are actively choosing their payment methods, not just sticking with what they know. 

Interestingly, consumers are also switching payment methods depending on the context; 62% say the value of a purchase influences their choice, with 44% turning to credit cards for high-ticket items, often for the added protection (58%). 

This openness to trying new methods is underscored further with almost half of consumers (48%) expressing an openness to trying one-click checkouts. However, they would only be prepared to do so if it were backed by a trusted brand such as Visa, Mastercard, or a reputable, well-known retailer. 

Overall, more than half (53%) of consumers told us they are willing to switch to newer payment methods, with nearly a third (30%) willing to do so for a faster checkout process. 

Balancing speed and security

However, while convenience and speed are major drivers for the take-up of new payment methods, security and trust remain essential for European shoppers when deciding how to pay. 

The recent cyberattacks against M&S in the UK are a timely reminder of the profound consequences that a security failure can have in terms of consumer confidence and overall business activity. 

Unsurprisingly, nearly three-quarters (71%) are happy to slow down the checkout process if it means stronger fraud protection. But opinion is split on who ultimately holds responsibility for fraud prevention: 44% think it’s on retailers, banks, or processors; 24% believe it’s the consumer; and 32% aren’t sure. 

The results underline the challenges facing retailers in earning consumer trust and the balancing act of providing quick, seamless checkout experiences which don’t compromise on security. 

Payments are personal – and regional

As well as catering for the preferences of different shoppers, our research finds significant regional variations across European markets, too. Overall, PayPal is now the top online payment method for Europeans (50%), followed by debit cards (39%) and credit cards (33%). 

But in the UK, debit cards dominate (63%), while PayPal remains the top choice in Germany (71%). In the Netherlands, local method iDEAL takes the lead (39%), and with volume of iDEAL transactions increasing by 10% to 1.47 billion, the findings underscore the importance of catering for local payment preferences. 

Exploring new opportunities 

This can all appear a bit daunting for merchants, who simply can’t afford to neglect their checkout as customers’ tastes and preferences evolve. More than two-fifths (43%) of the continent’s consumers say they wouldn’t return to a retailer after a poor checkout experience, with UK shoppers particularly unforgiving when faced with friction. 

But as well as challenges, there are opportunities on offer for those willing to grasp them.

What is clear is that the checkout shouldn’t be seen as just a final, functional step. Rather, it’s a critical moment to build trust, encourage repeat purchases, and differentiate from competitors. Businesses that can offer both speed and safety, with payment options that reflect varying preferences, will be the ones that win customer loyalty and drive growth. 

Merchants and marketplaces shouldn’t be afraid of promoting new payment methods, and should actively look to collaborate with the right technology partners to unlock greater choice for their customers, while ensuring convenience and security are delivered hand-in-hand. 

One size certainly doesn’t fit all in the modern shopping landscape – regional preferences and personalisation matter. Drilling down deeper into the intentions guiding consumer actions, and offering the right range of payment options to match that intent, can make all the difference when it comes to turning casual shoppers into valuable repeat customers.