A new report from Open Banking platform TrueLayer has revealed the disparities between consumer expectations and the reality of the online payment experience, with nine in 10 expressing frustration.
The Payments Experience Playbook also outlined that 55% of consumers stated they would abandon their transactions because of a poor payment experience, magnifying a need for merchants to explore alternative payment methods as a way to improve the customer experience.
TrueLayer believes this frustration can lead to real impacts for merchants. 73% of consumers say that slow or frustrating payment processes will make them more likely to abandon a transaction and try elsewhere.
56% of consumers revealed that poor payment experiences makes them less likely to remain loyal to a brand.
Security, speed, trust and convenience are the key factors consumers look for in their payments experiences. Of these, security is the most important factor, as identified by 64% of those surveyed.
Nadja Bennett, Strategic Accounts Director at TrueLayer, said: “Today’s report reveals the huge gap that exists between consumer expectations of the payments experience and the reality.
“This experience gap has significant consequences for merchants in terms of conversion rate, brand loyalty and ultimately, their bottom lines.”
However, the TrueLayer research suggests that some merchants have struggled with implementing strong customer authentication (SCA), resulting in increased payment friction.
The problem is particularly for smaller companies, with 73% of merchants with 250-499 employees reported declining conversion rates from SCA. For companies with more than 500 employees, that figure drops to around 54%. It’s clear that for smaller merchants in particular, balancing seamless payment experiences with security requirements is crucial.
Open Banking has been offered as a solution to merchants to help remedy their customers’ poor user experience.
The technology can deliver a solution that addresses all four of merchants’ key requirements, delivering “smooth, secure and instant transactions”, payments powered by Open Banking can help improve the checkout experience for customers.
Bennett concluded: “Whilst strong customer authentication rightly reflects the need to combat fraud, merchants have continued to struggle with its implementation. Alternative payment methods like open banking can deliver on consumer needs and expectations, while maintaining security and simplicity for merchants of all sizes.”
