back Back

Brits test payment options early as friction-free checkouts rule peak sales

By Puja Sharma

November 14, 2024

  • Apple Pay
  • BNPL
  • British
Share

Quantum Metric reveals that 50% of Brits will test a website’s payment options ahead of peak sales to ensure they can complete transactions quickly. This is especially true for the launch of limited offerings, such as the latest iPhone or concert tickets.

The new benchmark report, ‘The fall of peak’, also highlights how the concept of a peak spending season is becoming less defined in today’s always-on digital world.

Despite mobile traffic accounting for over half of visits to retail sites, it only drives 33% of conversions. To address this gap, the report suggests simplifying payment forms and ensuring clear, easy interaction on smaller screens. This includes minimising the number of fields customers need to fill out and providing autofill options to speed up the process, thereby reducing friction and enhancing the mobile shopping experience.

Simplifying payment forms is essential for reducing friction during the checkout process. The report advises retailers to focus on making payment forms as straightforward as possible. This can involve reducing the number of required fields, using clear and concise labels, and providing helpful error messages to guide customers through the process smoothly. By streamlining the payment process, retailers can significantly improve the likelihood of customers completing their purchases.

Offering a variety of payment methods is another key recommendation. The report emphasises the importance of catering to different customer preferences by including options such as digital wallets (e.g., Apple Pay, Google Pay), buy now, pay later services, and traditional credit/debit card payments. Providing multiple payment options can help reduce cart abandonment and improve the overall shopping experience, as customers are more likely to find a payment method that suits their needs.

Ensuring that customers feel secure during the payment process is vital. The report underscores the importance of displaying trust signals, such as security badges and clear information about data protection measures. This can help reassure customers that their payment information is safe, thereby increasing their likelihood of completing the purchase. Building trust through visible security measures is crucial for maintaining customer confidence.

Mike Hanson, VP of Banking, Financial Services and Insurance at Quantum Metric, said, “With consumers looking for more flexibility in their holiday spending, payment options—whether directly integrated with a brand or through buy-now-pay-later (BNPL) programs—are proving to be a major opportunity for FSI brands. Nearly half of BNPL users prefer options provided by their credit card company, underscoring the advantage for FSI brands to meet this growing demand within their offerings. Additionally, while peak sales periods are prime for boosting enrolment in credit cards and other services, the real value lies in a long-term strategy. It’s about capturing interest today but nurturing it to build lasting customer relationships well beyond peak seasons.”

Finally, providing real-time updates during the payment process can enhance the customer experience. This includes confirming payment receipt immediately and providing clear information about the next steps, such as order confirmation and delivery timelines. Keeping customers informed throughout the payment process helps build trust and reduces anxiety, ensuring a smoother and more satisfying shopping experience.

By focusing on these payment-specific strategies, retailers can improve the checkout experience, reduce friction, and increase conversion rates, particularly during peak shopping seasons.

Key findings:

Around 50% of Brits prefer regular deals from brands all year round over scheduled sale days like Black Friday and Cyber Monday.

  • Over 32%of consumers plan to use Buy Now, Pay Later (BNPL) for their holiday spending this year. What’s more, 48% of BNPL users prefer options provided by their credit card company.
  • Consumers remain cost-conscious, with38% limiting this year’s holiday spending due to the cost-of-living crisis.
  • Around 29%of consumers are starting their festive financial planning earlier, suggesting that earlier sales are driving early holiday behaviour.
  • Payment can be a key friction point during sales seasons – 35% of digital leaders report their biggest issue with payment flows involves third-party payment apps.

Previous Article

November 14, 2024

Morgan Stanley Expansion Capital invests $20m in NovoPayment

Read More
Next Article

November 14, 2024

Wave Money taps Amdocs to enhance financial services operations

Read More






IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

Can tech-driven CFOs lead the next wave of innovation in financial services?

Read More

December 10, 2024

Middle East banks brace for a stable yet FinTech-driven transformation in 2025

Read More

December 09, 2024

The Monday Roundup: what we are watching this week | Dec 9th

Read More

Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q3 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More