New research by Merchant Advice Service has found that more than £1 billion is lost by retailers annually, due to the lack of payment methods available for customers. More than 2,200 UK adults over the age of 18 took part in the survey, all of whom regularly shop online (at least once per week).
It was initially found that over two thirds of respondents (67 per cent) find it frustrating when there is a lack of payment methods available when shopping online; of those, more than half (54 per cent) admit they’re discouraged to complete an online purchase if the payment options are limited solely to debit or credit card details.
When asked which payment methods respondents’ favour the most (and able to pick more than one option), 71 per said they opt for PayPal, closely followed by 68 per cent who said they tend to use digital wallets (Apple Pay and Google Pay). Meanwhile, 24 per cent prefer Buy-Now-Pay-Later (BNPL) payments such as Klarna and Clear Pay.
Quizzed further, the top reasons respondents gave for using alternative payment methods when online shopping – as opposed to their credit or debit card – were revealed to be:
- “I’ve lost my bank card/don’t know my details” – 86 per cent
- “I don’t want to re-enter my card details every time I shop” – 78 per cent
- “I prefer one-click payments, it’s so much more convenient” – 65 per cent
- “I feel safer using Paypal and Apple Pay because my details are protected” – 54 per cent
- “If I’m shopping in bed, I can’t be bothered to get up and find my card” – 48 per cent
What’s more, one fifth of respondents (20 per cent) admits that every time they cannot pay with their preferred payment method, they simply abandon the purchase. Asked to give an estimate on the monetary value of the items they ‘window shopped and dropped’ each month, the average answer was £15.00.
The team at Merchant Advice Service have consequently estimated – that with approximately 50,909,098 adults aged 18 and over in the UK, and the one fifth of respondents who admit to abandoning £180 worth of products online per year – means as much as £1,832,727,528 is lost by retailers annually due to the lack of payment methods available for customers.
Libby James, co-founder of Merchant Advice Service, commented:
“These findings show just how crucial it is for retailers to offer alternative payment methods to just credit or debit cards, since so many now prefer using Google Pay, Apple Pay, Klarna, and so on. By limiting your payment methods, you’re equally limiting your chances of a sale if customers are unable to pay using their preference. To avoid customers falling at the final stage of checkout, consider adding payment methods that make the online shopping experience as seamless and hassle-free as possible, by offering one-click payments and more.”
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