Billions more pounds a year could be spent by shoppers if online checkouts were simplified. Mastercard examines how retailers can streamline their services to ensure consumers don’t fall at the final hurdle
More than half (58%) of consumers prefer to checkout as a guest when shopping online, according to research by Mastercard, but doing so prompts security concerns and complaints about the hassle of manual card entry, which means customers are abandoning online shopping carts in their droves.
At a time of year when retailers should be filling their stockings, abandoned carts are estimated to cost UK businesses £21bn a year, a survey by fintech firm Mollie found.
Retailers face a dilemma: how can you continue to allow customers the guest checkout functionality they prefer, while also ensuring a secure and frictionless experience that mitigates cart abandonment?
Convenience is key
The online checkout experience is being reimagined by the payments industry – with retailers at the forefront and convenience for shoppers at its heart.
The ultimate aim is to allow shoppers to store all their payment details in one centrally managed profile (regardless of the card scheme provider) and use it to check out with just a few clicks.
Simplifying the checkout experience offers a trio of positives to retailers and consumers alike:
- Increases conversions: Reduce friction and recognise consumers at checkout, enabling the same fast, seamless experience across mobile devices and online stores.
- Increases approval rates: Tokenise payment details, using encryption to create a unique single-use transaction code, so merchants and consumers can benefit from added security and reduced fraud.
- Reduces cart abandonment: Allow consumers to check out without needing to store or enter their card details each time.
Natwest’s head of payment schemes, partnerships and commercial Salim Secretary says: “We know that safety and convenience are top of mind for our customers when shopping online, and that retailers struggle with cart abandonment.”
Retailers must prioritise a user-friendly checkout experience without sacrificing security, converting more online transactions into sales and transforming one-time buyers into loyal customers.
The statistics make it clear to see that simplifying the checkout process should be top of the agenda for all:
- 54% of consumers say they’d abandon their shopping cart if a company asked for too much information, according to a Capterra survey
- Over half (54%) say they’d abandon a purchase if they felt the payment was insecure a report from Mollie found
- 62% of customers give up on a purchase after two minutes – but currently the average time to checkout is three minutes, according to Stripe
- 79% of the total volume of fraudulent card transactions is card-not-present fraud says the European Central Bank
Introducing Click to Pay
Click to Pay, a seamless and secure alternative to guest checkout based on global payment industry specifications, offers consumers convenience when checking out online, without sacrificing security.
Working as a single wallet to support all card schemes, Click to Pay connects devices and browsers so consumers can enjoy a consistent user experience at any participating merchant. Users are pre-recognised by their device, eliminating the need to manually enter details or remember passwords.
To find out more about Click to Pay please contact Mastercard or your business’ bank.