Research conducted by Tink into consumer online payment expectation has found that 88% are willing to abandon a transaction if they experience some form of friction.
The open banking platform revealed that UK consumers have “sky-high expectations” for their customer journey, expecting more seamless and frictionless transactions which may suggest financial service providers emphasise a quicker transaction.
Of 2,000 consumers surveyed, 58% of respondents expect a payment to be completed within one click. However, a resounding 76% of those surveyed claim to be pleased with the multiple payment methods available.
Therefore, the bar has been set high by consumers for an effective user experience. 77% of customers now expect instantaneous payments but nearly three quarters said new payment methods have simplified the payment process.
Tom Pope, Head of Payments and Platforms at Tink, commented: “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.”
During its research, Tink outlined four factors as to why consumers would abandon a payment. These factors being: worried a payment method is not secure, having to share personal details with a third party, being redirected to another site, and having to confirm their identity on separate devices.
Expectations within the 18-34 year old demographic maintain a high expectation, with 63% believing a payment should be paid within one click and mobile phones should be equipped to pay for everything.
“Consumers want to know that payments are secure and reliable – but increasingly they expect them to be embedded in a user journey to the extent that they almost become invisible. This is where open banking comes in,” said Pope.
With “sky-high expectations”, consumers expect financial services to make their payment journey as seamless as possible. Tink believes that new and innovative methods in open banking can be of particular benefit to speed up this process.
Tink found over one in ten (12%) of 18-34 year olds have already used ‘pay by bank’ transfers to pay for their goods, indicating that young people are willing to explore newer payment methods available.
Pope concluded: “Open banking payment methods, often called ‘pay by bank’ transfers, can significantly reduce friction, improve reliability and enhance security, and can turn a previously negative payment experience into a competitive advantage for the merchant.
“As consumers embrace new payment methods and experiences become even more seamless, businesses who fail to adopt the latest payment technology may find they fall short of their customers’ expectations.”