Over Half of Consumers Want More Payment Options at the Checkout, According to Paysafe Study
December 02 2021 - 5:00AM
Business Wire
Study reveals that 63% of online businesses
globally see their checkout as a competitive advantage in response
to changing consumer preferences, but stumbling blocks remain
The COVID-19 pandemic saw the majority of online businesses
(61%) accelerate their plans to upgrade the checkout as a direct
result of them seeing consumer payments preferences changing (65%)
and customers asking for more payment options (52%). That’s
according to new research from specialised payments platform
Paysafe (NYSE: PSFE) as part of its ‘Lost in Transaction’ report
series, in which 1,100 small-to-medium-sized businesses (SMBs)
globally, which operate online and instore, were asked about how
their payment offerings had changed over the last 12 months.
However, with 40% of respondents seeing cart abandonment levels
as more than a minor issue, and 41% recording an increase in
fraudulent transactions since the start of the pandemic, the
checkout remains a hindrance for many, forcing them to re-evaluate
what they require from their payments partner. In fact, reliability
(as identified by 42% of respondents) has now overtaken cost (32%)
and security (26%) as the most common priority for online
businesses when searching for a payments partner.
In a bid to upgrade the checkout and attract more customers,
offering alternative payment methods is becoming increasingly
important to online businesses – with digital wallets and eCash
gaining particular traction. 61% of online businesses are now
offering digital wallets and 67% have seen an increase in the
percentage of sales completed via this method in the last 12
months. Elsewhere, 29% are already offering eCash and over a third
(35%) plan to in the next 12 months.
According to the findings, online businesses are also adopting
cryptocurrencies en masse. Almost half (48%) of all businesses are
looking to offer cryptocurrencies in their checkout as soon as
possible, with almost three in five (59%) believing this will help
them expand their business into new countries.
As online businesses continue to diversify their payment
offerings, providing a streamlined, secure and reliable checkout is
becoming paramount. A third of online businesses say they are
currently an easy target for fraudsters (33%) and uncompetitive on
fraud prevention (34%). Although 59% believe having more payment
methods available in the checkout is an effective strategy to
reduce fraudulent transactions, 31% don’t feel that they have all
the tools needed to minimise such activity in their checkout.
Alongside fraud prevention, online businesses are also looking
to their payments partners to improve cart abandonment rates, with
respondents seeing an increase in this over the past 12 months –
primarily due to cards being declined (24%) or consumers not being
able to pay with their preferred payment method (16%).
Paulette Rowe, CEO of Integrated & Ecommerce Solutions at
Paysafe, commented: “Since the start of the pandemic, more and more
online businesses have learnt the hard way that not having a
frictionless or secure check-out experience will kill their sales.
On top of that, shoppers are now demanding a wider choice of
alternative payments methods than ever before – such as digital
wallets and eCash - and our research indicates this is not likely
to diminish. With the holiday season now upon us, reflecting the
busiest online shopping time of the year, those who get it right
will come out strong and avoid high rates of cart abandonment. For
those who are still catching up, it’s actually easier to resolve
than they might realise, but they should address this fast and work
with a payments partner which can meet their specific needs,
offering the broad range of payment methods that consumers demand
today.”
For further takeaways from the research, as well as additional
analysis, read the full report here:
https://www.paysafe.com/en/blog/lost-in-transaction-finding-competitive-advantage-at-the-checkout/
About the research
To compile this data Paysafe commissioned a survey by Sapio
Research among 918 online businesses (with a company size of 1-50
employees) based in the US, UK, Canada, Brazil, Bulgaria, Italy,
Austria, and Germany between October 22 – November 1, 2021.
About Paysafe Limited
Paysafe Limited (“Paysafe”) (NYSE: PSFE) (PSFE.WS) is a leading
specialised payments platform. Its core purpose is to enable
businesses and consumers to connect and transact seamlessly through
industry-leading capabilities in payment processing, digital
wallet, and online cash solutions. With over 20 years of online
payment experience, an annualized transactional volume of US $100
billion in 2020, and approximately 3,400 employees located in 12+
global locations, Paysafe connects businesses and consumers across
70 payment types in over 40 currencies around the world. Delivered
through an integrated platform, Paysafe solutions are geared toward
mobile-initiated transactions, real-time analytics and the
convergence between brick-and-mortar and online payments. Further
information is available at www.paysafe.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20211202005391/en/
Anna Howard, Director of Communications, Europe and Asia,
Paysafe Anna.howard@paysafe.com +442038908975
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