Open Banking solutions boost holiday sales, research reveals

By Puja Sharma

Trustly, a leading Open Banking provider, today reveals that Open Banking can maximise online returns for retailers this Black Friday Weekend, as in-person shopping remains below pre-pandemic levels.

The findings are set out in a whitepaper, titled “How to maximize your Black Friday sales this year with Open Banking payments”, which is based on an analysis of customer behaviour over Black Friday, Black Friday Weekend, and Cyber Monday, collectively referred to to as ‘Black Friday Weekend’, 2021.

With retail footfall remaining below pre-pandemic levels on Friday, online stores are playing an increasingly important role for retailers looking to make the most of the holiday season. Having account-to-account payment options in place can help boost returns further still, with Trustly’s report finding that Open Banking solutions can help maximise retailers’ online sales in two ways:

By increasing average conversion rates

Trustly identified two peaks in shopping activity on Black Friday, famously the busiest shopping day of the year. These are just before and just after typical working hours when consumers are likely to be commuting and on their mobile phones.

Traditionally, customers are almost twice as likely to convert on desktop (3.7%) as they are on mobile devices (2.2%). However, Trustly’s report has found that consumers using Open Banking are equally likely to convert whether they are shopping via mobile or by desktop (0.3% higher on desktop) due to the checkout process being simple and secure.

Reducing average refund and return rates

Additionally, the Open Banking provider found that payments made on Black Friday last year via its account-to-account payment solution resulted in an overall refund rate of just 8.8%. This compares to average refund rates which, according to eMarketer, can be as high as 30%.

Ciaran O’Malley, Vice President of Financial Services & eCommerce at Trustly, said, “The Black Friday Weekend is one of the most important times of the year for retailers, and sets the tone for the rest of the holiday season. While many factors contribute to a Black Friday success, our study highlights the fact that reliable and intuitive payments can boost revenue significantly.

“Open Banking payment solutions can support retailers as they respond to the customer behaviours outlined in this report, helping optimise checkout procedures for the highest conversion rate, while also reducing the transaction cost to the retailers themselves.”

Key Takeaways

• Consumers using Open Banking are equally as likely to convert on mobile as they are on desktop
• Meanwhile, Open Banking payment solutions reduce Black Friday refund rates by two thirds
• With retail footfall remaining below pre-pandemic levels on Friday, online stores are playing an increasingly important role
• Customers are almost twice as likely to convert on desktop (3.7%) as they are on mobile devices (2.2%)due to the checkout process being simple and secure
• Open Banking provider found that payments made on Black Friday last year via its account-to-account payment solution
• Open Banking payment solutions can support retailers as they respond to the customer behaviours outlined in this report
• OB helps optimise checkout procedures for the highest conversion rate, while also reducing the transaction cost to the retailers themselves