payment innovation UK
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UK Businesses ‘Must Focus on Payment Innovation’, as 49% of Firms Fail to Invest in New Solutions

With high inflation taking its toll on independent businesses and enterprise chains alike, the importance of providing customers with a good shopping experience is only growing. 

New research from Lloyds Bank and FreedomPay, a payment platform as a service provider, highlights the impact that embracing new payment innovation could have on UK businesses. Payment infrastructure can have a significant impact on ensuring customer satisfaction, and help build brand loyalty.

More than half (59 per cent) of UK retail, food and beverage (F&B) and hospitality companies appear to agree with this, as they already put payments at the heart of their customer experience strategy, reflecting the growing importance of implementing payment options.

The same proportion of retail-focused businesses believe that a good checkout experience is essential to building customer loyalty, with respondents believing it is as much a competitive advantage as having the best products.

Meanwhile, 57 per cent of retailers said that a poor payment experience could have a detrimental effect on their business, pushing customers to competitors who offer a better experience.

Melinda Roylett, managing director of merchant services at Lloyds Bank, discussed the importance of bettering the checkout experience for consumers: “The way we pay has undergone rapid shifts in the past few years.

“Accelerated by the pandemic, technological advancements and innovative ways of using open banking have led to the increasing adoption of contactless, digital wallet solutions and embedded finance options such as buy now, pay later. Consumers now have more choice than ever. This means that businesses also need to think about how they use the payment experience at checkout to build business growth.”

Combatting payment challenges with innovative solutions

However, while many firms clearly recognise the importance of providing a good payment experience for customers, many are finding this a challenge to implement.

Fourty-nine per cent of the businesses surveyed had not invested in payment solution updates at all, and only 27 per cent of respondents felt confident in their omnichannel payment experience offering.

This disparity highlights that businesses have a lot of room for growth, as investment in new payment technology could lead to significantly enhanced customer experiences and result in increased sales.

Other findings highlighted how businesses are using data, with many understanding that payment data can help them to make more informed decisions. Eighty per cent of respondents are using payment data to learn more about their customers to tailor services and products for them, which can be crucial to maintaining customer engagement and driving brand loyalty.

Chris Kronenthal, president of FreedomPay, commented: “What is evident from our research is that brands must focus on payment innovation now more than ever.

“Understanding what customers expect and want from a payment experience is fundamental to ensuring that customers keep coming back. Choosing the right payment partner can support strategic business decisions and streamline checkout to help deliver a personalised, seamless, and data-driven experience any time, any place.”

Author

  • Tom joined The Fintech Times in 2022 as part of the operations team; later joining the editorial team as a journalist.

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