Visa Checkout announces significant rise in adoption of Visa Checkout while research highlights the need for retailers to provide a frictionless online checkout method to reduce cart abandonment.
Abandoned shopping baskets remain a significant issue for UK retailers. More than half (52%) of retailers surveyed for recent research by analyst house Ovum and European payments provider Klarna, cited checkout as the main point in the shopper journey for consumers to fall out.
“This data shows that simple things such as a tricky checkout process or lack of payment options can turn off today’s consumers,” said Luke Griffiths, UK General Manager, Klarna. “But there is much to gain for retailers who get this right – consumers will spend more if the payment process is smooth and stress free.”
To this end, it’s interesting to note Visa Checkout’s success. Visa Checkout provides online shoppers with a quick and frictionless method of payment. Visa announced last week that Visa Checkout now reaches more than 20 million accounts and an increase of big brand names, such as Marriott, Walmart, Emirates and Avis Budget, joining the platform.
“Visa Checkout continues to simplify the online checkout process for consumers, while helping merchants increase sales and convert items in the cart to completed purchases,” says Sam Shrauger, senior vice president, digital solutions, Visa Inc.
Earlier this year, yStats’ ‘Global Alternative Payment Methods: Second Half 2016‘ report revealed that the combined share of alternative payment methods globally accounts for a higher share of ecommerce sales than traditional credit cards.
In the coming years, through 2020, yStats forecasts that credit and debit card share will further decrease while use of alternative payments will continue to rise. The top alternative online payment method is e-wallet, accounting for close to one-third of global ecommerce sales. It is also the second most-used payment method for cross-border online shopping. Other prominent alternative payment methods include bank transfer, direct debit, cash on delivery, payment by invoice and in-store payment.