According to TrueLayer’s newest data, approximately 90% of consumers are dissatisfied with online payments, which may boost abandoned checkouts.
According to new data by open banking payments network TrueLayer, nearly 90% of consumers are dissatisfied with their online payment experiences, which could result in a rise in abandoned checkouts.
According to TrueLayer’s latest Payments Experience Playbook report, 55% of customers will abandon transactions due to a bad payment experience, underscoring the need for retailers to look into alternative payment options in order to improve customer satisfaction and spur further growth.
Additionally, 73% of consumers indicate that lengthy or tedious payment processes will increase their propensity to forego a transaction and move on to another. Meanwhile, 56% of customers claim that bad payment experiences make them less likely to stick with a brand, which has an effect on merchants’ long-term income.
Additionally, security was revealed to be of the utmost concern to 64% of buyers. As a result of authorities’ failure to impose strong customer authentication (SCA) for online card payments, merchants are now also taking security seriously.
TrueLayer further disclosed that certain merchants, especially smaller ones, are having difficulty implementing SCA. 73% of businesses with between 250 and 499 employees reported decreased SCA conversion rates.
In businesses with more than 500 employees, the percentage fell to about 54%. It is evident that smaller retailers, in particular, must strike a balance between secure needs and smooth payment experiences.
Consumer expectations and payment realities “huge gap”
The payment experience research findings were discussed by TrueLayer’s strategic accounts director Nadja Bennett. “Today’s report shows the enormous disconnect between consumer expectations of the payments experience and the reality,” Bennett added. For merchants, this experience divide has serious financial ramifications in terms of conversion rate, brand loyalty, and bottom lines.
Strong customer authentication, which is a necessary measure to combat fraud, has been difficult for merchants to adopt. Open banking is one alternative payment option that can meet customer demands and expectations while also being secure and straightforward for businesses of all sizes.
In the research, TrueLayer explains how open banking may provide a solution that meets all four of the main needs of merchants. Payments supported by open banking can help customers have a better checkout experience by enabling quick, secure, and seamless transactions.
Since 2018, open banking payment service providers have been required to include SCA. This indicates that compared to other payment options, SCA integrates with open banking much more well.