Shopping Hiccups: Minor Details Cause Major Obstacles for Customers in Making Payments
In the rapidly evolving world of retail, frictionless payment methods are becoming the norm. Companies like Apple, Google, and Samsung are leading the charge, with solutions such as contactless payments, cards, and digital wallets gaining widespread adoption. Apple Pay alone boasts hundreds of millions of users globally, significantly increasing transaction volumes and convenience.
The demand for seamless payment experiences is not limited to digital platforms. A report from RetailEXPO's latest research reveals that one-in-ten online shoppers would abandon a site if one-click payment is not offered. In physical stores, long queues to pay are a major cause of in-store purchase abandonment, with 53% of UK consumers citing this as their primary concern.
To address this issue, more than a third of shoppers would welcome the opportunity to pay with an in-aisle payment app. However, concerns about shopper anxiety around new technology persist. A third of shoppers worry about being charged incorrectly, and 31% express concern about being wrongly accused of shoplifting.
Despite these concerns, the report also highlights the demand for frictionless payment options in-store. Self-checkout options and 'scan and go' facilities were identified as improving customer experience (CX) when shopping. The report further reveals that year-on-year, in-store queues remain consumers' biggest irritation with shopping.
Online, the story is similar. Over a quarter of shoppers abandon online baskets when faced with lengthy payment processes, and 28% of online shoppers get annoyed when the checkout takes too long. A fifth of shoppers expect retailers to make the online payments process more friction-free, similar to Amazon's one-click 'Buy-Now' option.
The impact of ecommerce experiences on in-store expectations is reflected by the 15% of shoppers who would like retailers to offer buy-now-pay-later options available for in-store purchases. Retailers are predicted to see a 300% growth in demand for friction-free payment transactions over the next five years.
Matt Bradley, Event Director at RetailEXPO, comments, "Retailers should ensure a mix of choice of payment option, speed, and security at the online checkout to avoid undermining the customer's journey to purchase."
The full report titled "Retail Trends: How retailers can harness digital to capture the consumer in 2020 and beyond" provides insights into customer attitudes towards payments and their implications for retailers and business leaders.
Visitors can register for RetailEXPO for free on the RetailEXPO website. The event, taking place on 29-30 April at Olympia London, offers opportunities to learn more about these topics. Payments made with Apple Pay are expected to account for 10% of global card transactions by 2025.
Interestingly, 77% of 18 - 34-year-olds say they don't see a place for physical notes and coins, compared to 56% of the 55-plus age bracket. This generational shift towards digital payments underscores the need for retailers to adapt and embrace frictionless payment methods to meet the demands of their customers.
In conclusion, the future of retail lies in frictionless payments. Retailers who prioritise seamless payment experiences stand to benefit from increased customer satisfaction, loyalty, and sales.
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