British retailers are losing an estimated £8bn in revenue due to a lack of payment options online, according to research from Adyen.
The research found that customers being unable to pay with their preferred payment methods – such as digital wallets or international cards – was leading to billions of pounds in abandoned purchases. The findings demonstrate the need for retailers to take steps to expand their checkout options, given that online shopping accounts for almost 20% of all UK purchases.
However, it’s not just a lack of payment options leading to abandoned carts. Additional barriers such as lengthy payment forms and falsely declined transactions are costing retailers £257bn globally.
57% of Brits said that fast and convenient payment options would increase their loyalty to a retailer.
Currently, 43% of UK retailers are unhappy with the performance of their online channel but just 34% are implementing a digital transformation strategy. Only 34% ranked improving the checkout experience as their highest digital initiative.
By not offering a seamless checkout experience and a wide range of payment options, retailers are missing out on a significant source of income. In fact, 57% of Brits said that fast and convenient payment options would increase their loyalty to a retailer.
Myles Dawson, UK Managing Director of Adyen, said:
“The convenience of services like Uber means we have become accustomed to simple, quick payment processes, wherever we are in the world. Given the borderless nature of online shopping, retailers need to ensure both domestic and overseas shoppers can pay quickly and easily. As we can see from our research, neglecting to offer the right payment methods is costing UK retailers dearly.”