Tink: UK consumers will not tolerate friction in online transactions
UK consumers increasingly expect to pay for goods and services in “one click” and the majority will abandon an online purchase if faced with friction in the payment process, according to new research.
European Open Banking platform Tink found that among 2,000 consumers surveyed in the UK, 76% are pleased they now have more choices when it comes to payments.
However, they have low tolerance for payment journeys that are not frictionless, with 88% prepared to leave an online transaction altogether if they experience friction when it comes to paying.
The research by Tink found that consumer expectations around payments are now higher, especially among the younger generations, which makes them more likely to drop off if they come across a payment experience that falls short.
Of those surveyed, 70% believe new payment methods have simplified the payments process, while 82% told Tink it is becoming easier than ever to make payments quickly and simply.
This means that 77% of consumers expect payments to be instantaneous – where the money is paid and received immediately – while over half, at 58%, expect online payments to be completed with one click.
Among those aged 18 to 34-years-old, the research revealed 63% expect to pay with one click, and the same percentage also expects to be able to pay for everything on their mobile phones.
Just over a third (37%) of this age group think that, when it comes to online payments, there are “too many hoops to jump through and too many details to enter”.
Tom Pope, head of payments and platforms at Tink, said: “Our research shows that while increased payment choice and innovation is apparent in many areas, holes remain in many user experiences that give rise to friction and frustration. Transactions too often end in abandonment if the experience is poor, which is bad for consumers and particularly bad for businesses, who can’t afford to lose customers at checkout.”
Among the reasons consumers gave for abandoning an online payment were concerns around security and having to share personal details with a third party. The respondents also said that if they were redirected to another site to make a payment, they would abandon it, Tink reported.
Pope added that consumers not only want to know that payments are secure and reliable, but also increasingly expect them to be embedded in a user journey “to the extent that they almost become invisible”.
He warned that businesses which fail to adopt the latest payments technology may find they “fall short” of their customers’ expectations.
Q&A: Tink’s Tom Pope on how Open Banking can turn payments into a competitive advantage