Online payment security was a recurring issue among shoppers and, alongside convenience, it was cited as a leading way that they could be encouraged to change the method they use for web transactions.
This echoes research from Mastercard1 that reveals protection or insurance – especially when using an unknown/untrusted website – as a key driver for consumers to adopt a new payment option.
“There are two issues that continually arise for consumers,” says Jonathan Wood, senior vice-president of consumer applications at Mastercard. “Who is making it easy for them to pay and who do they trust to handle their transactions?”
By combining a streamlined payment experience with a focus on customer data security, these obstacles can be overcome.
“A consumer-friendly payment journey helps reduce basket abandonment rates and providing a bank-grade level of security lowers the cost of transactions through the near elimination of fraud and dramatically fewer chargebacks,” explains Wood.
“There are two issues that continually arise for consumers – who is making it easy for them to pay and who do they trust to handle their transactions?”
Jonathan Wood, senior vice-president of consumer applications at Mastercard
Convenience is key
Debit and credit card may still be the primary online payment method for UK shoppers, but as the world of payments and technology collide, consumers are faced with more choice.
“Throw a stick down the online highway and you will hit a new way to pay,” says Wood. “And while this increase in options is beneficial for consumers, how do they know who to trust?”
The Mastercard research also found several other concerns that consumers have when faced with new payment methods, including set-up time, unfamiliarity with the process and lack of trust.
“A growing number of data breaches are impacting consumers’ lives,” Wood continues. “And they’re growing tired of receiving apology emails linked to the loss of their data.”
To maintain a high online conversion rate while keeping the checkout process frictionless, retailers need to focus on three key areas:
- Create frictionless payments, whether in store or online: Ensure shoppers can check out in a few easy steps, without having to enter any payment or delivery details.
- Provide convenient money management: Allow consumers to choose how they pay and see their balance confirming their payment in real time.
- Focus on security: Consumers need to be assured that their details remain secured by their bank and payment provider.
The next generation of online payments needs to make checking out smoother, easier and safer for consumers. It is these innovations in technology that will create new opportunities for retailers to capture online spend in the years to come.
Find out more
Pay by Bank app is a new easy-to-use payment solution from Mastercard that lets customers pay online quickly and securely from their existing trusted mobile bank app, without having to enter payment details, create new accounts or logins, or remember additional passwords.
1 Mastercard Digital Payments research Q4 2017