Poor online checkout experiences are causing UK consumers to ditch online purchases and mean that businesses are losing out financially, according to new research.
Open Banking platform Yapily has concluded that businesses are potentially facing a combined £656 million shortfall in missed revenue, after it surveyed consumers.
Among the 2,000 UK consumers polled, 52% said they had abandoned at least one online purchase in the past 12 months, citing a poor experience at the online checkout.
This figure rose to 70% among those aged 16 to 24-years-old and 64% of 25 to 34-year-olds.
The findings have been published in Yapily’s new report, ‘State of Payments 2023: The £650 Million Problem Open Banking Can Fix’.
The need to manually input card details, at 25%, was the biggest deterrent at online checkouts, while 19% said that merchants not accepting their preferred payment method was a reason for abandoning an online payment and 15% identified payments being blocked due to suspected fraud.
Yapily found that the majority of abandoned sales, at 69%, are valued at between £21 and £60, with 25% priced at between £61 and £100, putting the average value of a discarded shopping basket at £30.
Of those surveyed, 41% said they would like to see businesses offer more convenient and easier payment methods at checkout, and 34% displayed an interest in using a ‘Pay by Bank’ app, product or service.
Founder and chief executive officer of Yapily, Stefano Vaccino, called payments a “more critical and strategic focus” for every business.
He added: “New payment innovations, like Open Banking, are enabling businesses to realise this, transforming payments from a cost-reduction exercise into a way to increase performance and grow revenue.
“To stop poor payer experiences eating into their profits, businesses and payment service providers should listen to what consumers and merchants are asking for – a faster, cheaper, and more secure way to pay.”