New research from Barclaycard reveals that more than seven in ten retailers (72 per cent) haven’t introduced any new payment technology to their websites over the last two years*, despite consumer demand for a quick and convenient check-out process.
While 86 per cent of retailers say they are looking to increase online transactions over the next 12 months, the study suggests that many aren’t providing the best possible ecommerce experience for their customers. Keeping payment technology up-to-date helps retailers provide shoppers with a fast and easy experience at the online point of sale and could help drive revenue by reducing online abandonment.
This comes as the study shows that retailers could be missing out on £18 billion** in sales each year, as consumers abandon online baskets worth almost £30 a month. Barclaycard research also shows that 15 per cent of shoppers have chosen to abort an online purchase because they couldn’t pay using methods such as ‘one-click’ ordering, while 16 per cent highlight long checkout processes as their biggest frustration when buying online***. One in five (22 per cent) consumers also say they would like to see more retailers incorporate faster payments technology into their websites to speed up the check-out process.
Meanwhile, retailers who buck the trend and have introduced new payment technology to their website - for example, a new payment gateway, which provides a secure online link between a merchant and a bank - are reaping the rewards. Almost all (96 per cent) say this has enhanced the online experience for their customers, and 64 per cent say payment processing is faster.
Meeting expectations for a quick and easy payment experience will be crucial if merchants are to meet their ambition to increase online sales over the next year. Barclaycard’s Smartpay gateway - a service merchants can use to capture ecommerce payments - offers retailers an easy-to-integrate solution that makes the payment process fast and secure for customers and merchants alike. Barclaycard Smartpay helps to boost sales and customer loyalty by enabling features such as one-click ordering, and provides merchants with rich data and insight into customer behaviour across all sales channels.
These insights can help merchants identify the best strategies for re-engaging shoppers who have abandoned a purchase. The research shows, however, that many vendors are missing the data or insights they need to increase conversion: six in ten retailers (59 per cent) are unaware of the average buyer drop-out rate on their website and just 27 per cent analyse the browsing behaviour of shoppers who abandon their baskets.
George Allardice, Head of Strategy, Barclaycard Payment Solutions, commented:
“Today’s customers are increasingly time-poor and expect the online shopping experience to be as hassle-free as possible. Retailers spend time and money to develop engaging ecommerce sites, but they could still miss out on revenue if the customer drops out of the purchase because of disappointment with the payment process.
“Upgrading to a modern payment platform, such as Barclaycard’s Smartpay gateway, means merchants can offer their customers the seamless check-out experience they now expect. This could, in turn, reduce basket abandonment and increase sales.”