According to payment company, Adyen, UK retailers are losing in the region of £8 billion in revenue due to a lack of payment options online.
The survey, which questioned 811 UK consumers and 95 senior decision makers in the first quarter of 2019 about their shopping experiences, preferences and behaviours, found that customers being unable to pay using their preferred payment methods – such as digital wallets or international cards – is leading to billions of pounds in abandoned purchases. Given that online shopping accounts for almost 20 per cent of all UK purchases, the findings demonstrate the importance for retailers to take steps to expand their checkout options.
However, it’s not just a lack of payment options which is leading to abandoned carts. Lengthy payment forms and falsely declined transactions are costing retailers £257 billion globally.
A seamless checkout experience and a wide range of payment options is essential if retailers want to ensure they capitalise on all opportunities to increase income through online sales and improve client loyalty.
Commenting on the findings, Myles Dawson, UK Managing Director of Adyen, says: “The convenience of services like Uber means we have become accustomed to simple, quick payment processes, wherever we are in the world. Given the borderless nature of online shopping, retailers need to ensure both domestic and overseas shoppers can pay quickly and easily. As we can see from our research, neglecting to offer the right payment methods is costing UK retailers dearly.”
Trading conditions on the UK’s high streets are tough. Whether it’s Brexit to blame, high business rates, a spike in inflation, the national living wage, or the apprenticeship levy, the fact is that more and more retail businesses are failing. With this in mind, retailers need to look beyond existing offerings and tactics and re-address their operating models and online offering.
Our Beavis Morgan group business specialists are committed to providing entrepreneurial retailers with an understanding of the key issues driving the retail sector. Being centrally located within walking distance of London’s Tech City, and working in partnership with our technology business experts, we are well positioned to provide retailers with the most appropriate solutions to improve operational efficiency.
In the age of digital, those businesses who do not invest, reinvent and remain current run the risk of failure. And don’t forget that the government actively supports innovation, by offering businesses money back for research and development (R&D). This means that anything spent on researching or developing your current or future offerings, whether it’s your online payment system, a technical feature on your website, or an app which offers a new way of online shopping, may be liable for tax credits, which means your business’ financial position could be vastly improved. Up to 25 per cent of your R&D expenditure can be claimed back under the system if your business is profitable. If you happen to be running at an operational loss for a given financial year, then up to 33 per cent is allowed under the scheme.
To find out more about how we can assist you and your business, contact Mariske Byrnes or your usual BM Connect adviser. You can also visit our dedicated R&D website at https://beavismorganrandd.com/.