Spokesperson: John Harris, Senior Vice President, Travel & eCommerce, emerchantpay
Today’s consumers have higher expectations from brands than ever before. In fact, more than half of consumers (54%) will not return to a brand after just one bad experience. This is due in part to shoppers becoming accustomed to the convenience of the digital era, where they can purchase items at the click of a button from the comfort of their own homes.
To remain competitive in a rapidly evolving market, and prevent customers turning elsewhere, eCommerce merchants must deliver outstanding customer journeys and a seamless overall customer experience (CX). This includes a hassle-free online purchasing process, with payment options that align with customers individual preferences. Consequently, merchants that only offer traditional payment methods risk falling behind.
Offering a variety of payment options is not just about convenience. It also directly impacts customer satisfaction and loyalty. For online retailers looking to improve their CX, expanding their payment offerings is essential. In doing so, they can cater to a broader customer base, increasing loyalty and ultimately driving revenue.
The demand for diverse payments across eCommerce markets
A key factor driving the need for diverse payments is the rapid rate at which the UK eCommerce market is growing. At the end of last year, there were nearly 60 million eCommerce users across the nation. This is anticipated to increase to over 62 million in 2025. As the market expands, so does competition. And with significantly more online brands available, customer loyalty is waning.
For instance, if a customer does not receive a quick and seamless experience from one retailer, they can easily find an alternative merchant to meet their demands. In fact, 44% of UK consumers stop a purchase if their favourite payment method is not available – highlighting the importance of a diverse payment offering. This demonstrates that consumers demand flexibility in payment options as part of a frictionless experience.
Another reason merchants need to expand their payment offerings is to enable better global transactions. The ability to sell products to customers worldwide is a major benefit of eCommerce and can drive huge business success. However, there are challenges to be considered. For example, different countries often have preferred local payment methods and, in some regions, consumers may lack access to certain solutions. Therefore, offering a variety of payment options can help retailers meet the needs of all users and ensure a quality experience, no matter their location. By adapting to local payment preferences, merchants can create a consistent experience for global customers, supporting both satisfaction and loyalty.
How do different payment solutions help improve CX?
There are a range of Alternative Payment Methods (APMs) gaining traction across the eCommerce industry. One key example is Open Banking. This solution streamlines online shopping by enabling direct bank-to-bank transfers. This approach speeds up the checkout process significantly – transactions can be completed in seconds, with no need for consumers to enter their card details. With real-time processing, funds move instantly from the customer’s account. This provides consumers better clarity on their financial situation and can aid their budget management.
Additionally, the direct connection between banks, coupled with robust bank-level authentication measures, significantly reduces the risk of fraud for users. In brief, Open Banking offers a faster, more transparent and secure way for consumers to make online purchases, significantly enhancing the overall CX.
Digital wallets, such as Apple Pay, are another payment method that can help optimise CX. Digital wallets store a user’s credit or debit card details in an app, encrypting sensitive details for security during transactions. Then, consumers can pay for their products and services using their smart device. Digital wallets allow for quick payments, streamlining the online checkout process by saving time and reducing friction during transactions as they are not required to input card details. Typically, users can also access their digital wallets across various devices, making it easy to make payments from smartphones, tablets or smartwatches.
By incorporating solutions like these, merchants can significantly enhance the CX through faster, more secure, and convenient payment options. However, integrating these APMs seamlessly often requires the expertise of a trusted payment service provider (PSP). PSPs enable merchants to quickly adopt diverse payment solutions that cater to customer preferences globally. In fact, for 32% of payments leaders, the ability to offer a range of global payment options is the key reason for seeking a PSP partner. When partnering with a trusted PSP, eCommerce businesses are better equipped to meet consumer demand for alternative payments. This gives them a competitive edge as they can deliver seamless and flexible experiences that customers expect.
Ultimately, the flexibility and convenience of multiple payment options reduces friction in the purchasing process for consumers. This leads to a better overall CX and increased satisfaction. And the happier a consumer is with their experience with a brand, the more likely they are to become a loyal customer. For merchants, this can result in higher conversion rates, reduced cart abandonment and improved customer retention. As all this helps brands to gain a competitive edge in the increasingly crowded eCommerce landscape, offering multiple payment options is an obvious win-win.
