Digital wallets, buy now, pay later (BNPL) and a wide range of credit cards and apps compete for space at the checkout, adding friction to the point of sale. Frustrating checkout processes and requirements for personal information are causing the most friction. On the flip side, some buying experiences, such as marketplaces, provide significantly less friction in their checkout experience. These trends mean it is a must for merchants to retool their checkouts for greater customer satisfaction.
Consumers are overwhelmingly highly influenced by a satisfying checkout experience, with nine in 10 saying it affects whether they will make another purchase from a merchant. This translates into a need for flexibility in digital payment options and ease of use in store and online. Some 85% of consumers would rather use a card for in-person and online transactions that provides them with digital self-service and card controls.
The “Buy Now, Pay Later Tracker®” explores how a streamlined checkout experience that removes friction in-store and online can drive customer loyalty and help retailers better compete and grow.
Around the Buy Now, Pay Later Space
Like online checkout friction, in-store wait times have become a problem for 92% of retailers and 84% of consumers. Most merchants opt for technology solutions to remove in-store friction, with self-checkout and checkout-free solutions among the most popular.
Storing card data is a feature appreciated and used by many online shoppers, but those who use it most frequently — millennials — are more likely to experience complications related to issues such as expired or stolen cards. Even with a sought-after feature, this friction underscores how merchants must overcome budget constraints or technology limitations when streamlining their checkout processes.
For more on these and other stories, visit the Tracker’s News and Trends section.
The Inside Take on Streamlining Checkout for a Frictionless Experience
There is plenty of room for retailers to improve checkout experiences, but balancing flexibility with friction if the real magic. Merely activating new technology is not the answer. Balancing the simplicity of design and implementation with a focus on what motivates customer segments can enable the kind of checkout experience that yields repeat sales and revenue growth.
To get the Insider POV, we spoke with Checkout.com product manager Akin Kayim, Karma CEO Jonathan Friedman and Zenni Optical chief technology officer David Ting to learn more about streamlining checkout without adding friction.
Streamlining Checkout Offers a Competitive Edge
The rise of digital payment options, like stored payment data, brings the potential for added convenience. Recent research revealed that 73% of customers would take their business elsewhere when they do not receive the checkout experience they expect. For this reason, retailers must avoid cluttering the checkout with too many or the wrong payment options, as it can significantly affect customer loyalty.
Shoppers who have a satisfying checkout experience are much more likely to shop with that merchant again. Features like mobile app availability, an easy-to-navigate cart, storing account data and their preferred payment methods mean the most to consumers. Debit and credit cards are still the most popular payment choices, but digital wallets and BNPL are gaining ground.
To learn more about streamlining the checkout for customer loyalty, read the Tracker’s PYMNTS Intelligence.
About the Tracker
The “Buy Now, Pay Later Tracker®” Series, a collaboration with Splitit, examines how streamlining checkout to remove friction and provide a seamless in-store and online experience can be a competitive differentiator.
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