Payment friction causes most abandonment in shopping carts say online retailers.
UK based Payments company along with Ovum Research conducted a research of 100+ UK based merchants and found the following:
- Some 52% of 100 UK retailers questioned said that friction in the online checkout is the biggest reason that shoppers abandon baskets online. Some 40% blamed a lack of payment methods and 39% said a lack of lending or credit options stopped consumers completing their payment.
- The explosion in mobile shopping, finds the Klarna consumer research, is being driven by digital natives, such as Millennials and Generation Z (18 to 34-year-olds), which now account for over half of all online retail purchases in the UK. This compares to 30% for generation X (35 to 50-year-olds) and just 10% for baby boomers (50 to 70-year-olds).
- Some 90% of merchants say that meeting the demands of millennials is driving investment in new payment technologies.
- Fashion in particular is emerging as a major battleground to win millennial loyalty, with 95% of retailers upping their investment in tech to meet their expectations.