More payment options help combat high bounce rates
Up to 20 per cent of customers in the US, Great Britain and Canada say that the lack of payment options is among the most important reasons why they are breaking off a purchase.
Well over half of all Internet users cancelled a purchase in the last month. This shows that high bounce rates are still a challenge for online merchants. So far, the common assumption has been that solving this problem lies in making the buying process simpler and more direct. But that’s only part of the solution. Today’s consumers are very aware of fraud as an inevitable risk when shopping online. This was indicated by about half of respondents in the second part of the current “Lost in Transaction” study from Paysafe. 81 % therefore avoid shopping via insecure connections or on public networks. Even more problematic are those users who have already fallen prey to online fraud in the past. They often have a large proportion of the money refunded. However, it has been shown that after the incident they lose confidence in both the payment method and the online retailer.
SECURITY IS NOW MORE IMPORTANT THAN CONVENIENCE
The growing fear of fraud and concern about whether a merchant’s payment options are truly secure are now among the most important reasons for transactions not being completed. However, according to the Paysafe survey, 36 % of online retailers still fear that their customers will reject further security measures. Firstly, that’s a judgement of error. More than half of online consumers say they would accept new security measures, even at the expense of convenience. Secondly, measures such as introducing more payment options do not necessarily mean a more complicated process. The cash option is also perceived by consumers as being particularly safe. This gives merchants who offer this trust-promoting option an advantage, as they are considered to be much safer partners. Furthermore, other merchant payment options are also likely to benefit from this diversification, and bounce rates will tend to decline.
LACK OF PAYMENT OPTIONS
This assertion is supported by figures from part one of the “Lost in Transaction” survey. A total of 19 % of users surveyed stated that they had cancelled transactions because there were not enough payment options available. Particularly noteworthy is the fact that this value is above average among 18- to 25-year-old consumers, at 26 %. Even 26- to 34-year-old consumers show an above-average (21 %) rate of breaking off transactions due to a lack of options offered. This fits with findings from a Cyber Source Corp study several years ago, which showed that websites offering four or more payment methods in addition to credit cards saw a 12 % higher conversion rate compared to those with only one additional option. There is therefore plenty of evidence suggesting that the reduction of bounce rates can be achieved via the expansion of online payment options to include cash.