Retailers slow to update online payment tech

Written by Peter Walker

16/05/18

More than seven in ten retailers (72 per cent) have not introduced any new payment technology to their websites over the last two years, despite consumer demand for a quick and convenient check-out process.

Research from Barclaycard revealed that while 86 per cent of retailers said they are looking to increase online transactions over the next 12 months, many are not providing the best possible e-commerce experience.

The bank estimated that retailers could be missing out on £18 billion in sales each year, as consumers abandon online baskets worth almost £30 a month. Around 15 per cent of shoppers have chosen to abort an online purchase because they could not pay using methods such as ‘one-click’ ordering, while 16 per cent highlighted long checkout processes as their biggest frustration when buying online.

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) said this has enhanced the online experience for their customers, and 64 per cent said payment processing is faster.

The research also showed that many vendors are missing the data or insights they need to increase conversion, with 59 per cent unaware of the average buyer drop-out rate on their website and just 27 per cent analysing the browsing behaviour of shoppers who abandon their baskets.

George Allardice, head of strategy at Barclaycard Payment Solutions, commented that 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 e-commerce sites, but they could still miss out on revenue if the customer drops out of the purchase because of disappointment with the payment process," he stated.

Barclaycard commissioned Opinium to survey 2,001 adults during March and April, while the merchant research surveyed 314 senior managers in retail during the same period.