UK consumers are concerned about their payment security when shopping online, highlighting the need for retailers to upgrade their systems, according to a new report from payment orchestration provider BR-DGE.
The research reveals that 34% of shoppers rank data security and payment encryption as the most important element of a positive online payment experience.
A further 83% said they are concerned about how their card details are being processed and stored during transactions.
In addition to calls for greater security at the checkout, 68% are calling for a frictionless payment experience, noting that a poor experience at the checkout causes a negative impact on their willingness to buy online.
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Some 52% also stated that being taken away from the checkout screen for authentication may impact them going through with the transaction.
Furthermore, the report shows that avoiding failed transactions should be a priority for retailers, as 21% claim failed transactions make them feel less confident in the seller, while 23% said they reduce their confidence in the checkout itself.
Payment modernisation is more important than ever before for retailers, with the research revealing that 41% of shoppers spend online at least once every week.
The Office for National Statistics (ONS) recently published data showing that 27p in every £1 being spent by shoppers was online, up from 19p in 2019, highlighting the importance of online retailers investing in their payments infrastructure.
“This research demonstrates how payments is becoming an increasingly important issue for consumers when they make purchases online,” BR-DGE retail payments expert Mark Whybrow said.
“It is clear from the data that consumers are demanding more secure, frictionless payment experiences when shopping online with their favourite retailers.
“For retailers looking to increase their revenue from online channels, it is vital that they consider how they can adapt their checkout technology and payment journey to meet consumer needs.
“For ecommerce firms, this research highlights the opportunity to improve the customer experience of payments and reduce failed transactions by optimising their payments infrastructure. As consumer budgets tighten, the importance of offering a first-class end-to-end payment experience is even more important in order to build customer loyalty.”