RetailEXPO research flags up pesky payment pain points

Retailers need to diversify and reimagine traditional points of payment in-store and online, according to a report by RetailEXPO.

Its research, involving 2,000 UK consumers, revealed that year-on-year in-store queues remain the biggest irritation with 53% identifying long lines to pay as the primary cause of in-store basket abandonment. 28% of in-store shoppers say that retailers still have work to do to make the process in-store as friction free as online.

15% would like retailers to offer buy now, pay later options for in-store purchases. At the same time, 77% of 18 – 34-year-olds don’t see a place for physical notes and coins, compared to 56% of the 55-plus age bracket.

Self-checkout options (24%) and scan and go facilities (27%) were the two top technologies identified as improving customer experience when in-store. 34% would welcome the opportunity to use an in-aisle payment app. This figure increases to 44% of 18 to 24-year-olds and grows again to 50% for those living in London. A third of consumers are, however, worried they will be charged incorrectly, while 31% expressed concern that they may be wrongly accused of shoplifting.

Online, Amazon’s one-click Buy-Now purchasing option has heightened expectations with a fifth of shoppers saying that retailers should do more to make the process more friction free. 23% of online shoppers would abandon their purchase if the retailer didn’t offer their preferred payment method, with one in ten claiming they would go elsewhere if one-click was not offered on-site.

28% get annoyed when online checkout takes too long and a similar percentage (27%) are irritated if the online address and personal details capture process is too onerous. Matt Bradley, Event Director at RetailEXPO, comments: “There is no doubting the impact Amazon has had with shoppers wanting speed and convenience at every touch point of the in-store or online journey – and nowhere is this more pronounced than at the checkout.”

“It’s clear the key ingredients for the perfect online payment include a mix of choice of payment option, speed and security. Retailers who miss one of these elements as part of their online payment solution may fatally undermine the customer’s journey to purchase at the critical moment, just prior to conversion.”