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.

READ MORE: Klarna and Harris Reed launch competition for aspiring designers

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“Our research demonstrates that high-value shoppers will not tolerate outdated payment solutions.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.”

Click here to sign up to Charged‘s free daily email newsletter



Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.