Vyne: 40% of Shoppers Abandon Carts With Poor Payment Process

A new report by payments platform Vyne suggests 40 per cent of shoppers are ditching websites with poor payments processes. Retail payments reinvented: how consumer demand is changing explores online payments preferences of 2,002 British consumers surveyed by Vyne following a 43 per cent rise in e-commerce sales since the onset of the pandemic.

Just 40 per cent of respondents feel retailers always meet their payment expectations. Regular online shoppers are abandoning their baskets at least once a month, citing hidden charges and frustration at inputting lengthy card details as the chief reasons for doing so.

The research also exposed dissatisfaction with the refunds experience. Roughly 43 per cent of respondents who have requested a refund for an online purchase have had to chase for it, leaving them feeling frustrated and angry at the retailer.

“Online shopping has reached unprecedented levels of popularity, but the payment options at checkout have remained stagnant and stacked against the consumer,” Vyne co-founder and CEO Karl McGregor said. “Our research has indicated that a poor payments experience could limit growth for many online retailers, with consumers being unafraid to abandon their baskets and shop elsewhere if their expectations for clear, simple payments are not met. Despite the fintech industry transforming payments processes in recent years, retailers are not keeping pace by adopting these next-generation technologies.”

British consumers also indicated a clear willingness to try new methods of payment. Two in three of the respondents are open to trying out new ways to pay online, with 70 per cent saying their ideal payment method would offer instant refunds and no “pending” payments. The research also indicated a desire for more transparency with the payments process, in which consumers can instantly see their updated bank balance after making a purchase or requesting a refund.

“It’s time for a more modern, transparent and seamless approach that benefits buyers and sellers in a transaction,” Vyne CRO Luke Flomo added. “Open banking presents a golden opportunity to overhaul the traditional payments infrastructure that buyers have been beholden to for decades, as well as save retailers from expensive card schemes.”

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