Poor payment experiences cause 62% of luxury brand consumers to shop elsewhere

Poor payment experiences cause 62% of luxury brand consumers to shop elsewhere, according to a new report by Vyne.

The research reveals that over 86% of respondents with a household income over £75,000 (higher income households) are open to trying out new methods of online payment, which is 25% more than those from households with a lower annual income (61%).

Frustrations with card payments, such as slow authentication checks and concerns around fraud, have left luxury retailers seeing a dramatic increase in basket abandonment.

In an average week, 19% of individuals from higher-income households abandoned their basket at an e-commerce checkout.

Security is a major concern affecting luxury brand shoppers and 74% of respondents from higher income households stated that they would use an option which enables them to authenticate themselves using their banking app, rather than using traditional card payments.

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In addition, 31% of consumers stated that the refund process is tedious and frustrating.

A further 76% of respondents in higher income households claimed they would be more likely to shop with a luxury brand if they offered instant refunds and 78% would use a payment method that enabled instant refunds over their traditional method.

“There is a clear appetite for the purchasing of high-value goods, as the luxury retail sector saw a total revenue of £12.16bn in 2021,” said Vyne chief executive and co-founder Karl MacGregor.

“The challenge is that high-value consumers expect seamless experiences and the current payment options being provided by most luxury brands do not live up to these expectations.

“Our research demonstrates that high-value shoppers will not tolerate outdated payment solutions. If luxury retailers want to build a loyal customer base and reduce checkout abandonment, it is imperative that they implement solutions fit for the modern consumer.”

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