Poor payments processes is costing online retailers huge sums of money

Poor payment processing is costing online retailers huge sums of money, according to research from Vyne.

The study surveyed 2,002 consumers and found that 40% of UK shoppers are dropping retailers with poor online payment processes.

Another worrying find from the survey was that regular online shoppers are abandoning their baskets at least once a month because of hidden charges and frustrations when inputting card details.

A further 43% of consumers who have requested a refund from an online retailer have had to contact the company to chase it up, leading to further frustration and anger and damaging brands’ relationships with its consumer-base.

“Online shopping has reached unprecedented levels of popularity, but the payment options at checkout have remained stagnant and stacked against the consumer,” Vyne chief executive Karl MacGregor said.

“Our research has indicated that a poor payments experience could limit growth for many online retailers, with consumers being unafraid to abandon their baskets and shop elsewhere if their expectations for clear, simple payments are not met.”

READ MORE: Klarna launches browser extension opening up payment solutions to every online store

“Despite the Fintech industry transforming payments processes in recent years, retailers are not keeping pace by adopting these next-generation technologies.”

The research revealed that 66% of respondents are happy to try out new ways of paying online, with 70% claiming that their preferred method of payment would offer instant refunds and no ‘pending’ payments.

Vyne also found that consumers are increasingly wanting more transparency when it comes to payments process, where they can instantly see their updated bank balances after making purchases online or when receiving a refund.

The company’s chief revenue officer Luke Flomo added: “It’s time for a more modern, transparent and seamless approach that benefits buyers and sellers in a transaction.”

“Open Banking presents a golden opportunity to overhaul the traditional payments infrastructure that buyers have been beholden to for decades, as well as save retailers from expensive card schemes.”

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