UK consumers are not pleased with the current online payment system and new research from Ukash shows a correlation between this sentiment and the growing number of checkout abandonments.
According to the study published by the voucher-based prepaid payment service company, over a third of respondents (39 percent) have ditched an online transaction because they thought they were being asked to provide too many personal details over the web. Nearly half (46 percent) of online shoppers in the UK revealed they are frustrated by the security questions present during online transactions. Earlier this year, IMRG reported that online checkout abandonment interrupted roughly 37 percent of online transactions in the UK during Q1 2013. These losses are estimated to equal out to a £6 billion sales loss, which underscores the dire need for online retailers to improve the system to make the most of out the online sales market.
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“In particular, there appears to be a frustration with having to give what feels like too much information when shopping online. We, therefore, believe that if retailers make their payment options more flexible for consumers, they are more likely to have a higher checkout rate,” stated Ukash in a press release.
Moreover, Ukash’s research indicates the many retailers in the country are ignoring the needs of cash-reliant shoppers, which can lead to increased abandonment.
“We also believe that a number of online retailers are ignoring the cash shopper – someone who would rather use cash than put credit or bank card details online or perhaps doesn’t have access to credit or a bank account such as the youth market. These are still important shoppers and could be ignored by ecommerce businesses at their cost,” the study said.
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Cash is still the dominant payment method in the UK and in many other countries around the world, and this research highlights that cash consumers cannot be ignored. Companies such as Ukash offer alternatives for these customers, such as cash conversion options that allow shoppers to use codes to pay for goods. In other regions such as the Middle East, options such as cash-on-delivery are integral for business. Additionally, recent studies have shown that the click-and-collect method is a well-liked alternative, which also caters to the cash culture in the UK.
To read the full press release click here.
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