A new survey has revealed that retailers are more focused on online security than online POS revenue loss.
Up to 10% of international customers abandon their basket at the point of payment,
Survey shows retailers are more focused on online security than online POS revenue loss
according to almost half of the respondents of a recent survey, with the payment page cited as the reason in 42% of the cases.
However, when it comes to online shopping priorities, retailers put more emphasis on security than the loss of revenue caused by shopping cart abandonment, with 85% considering customer security to be a high priority, compared to abandonment of shopping carts which tops the list for just over half of the respondents.
“It is clear from our research that the understanding of payment cultures among overseas shoppers is growing, but barriers still exist to convert these potentially lucrative browsers into buyers. By addressing these issues, future revenues can be enhanced as well as retailers reach and brand awareness across the globe,” explained Tobias Schreyer, co-founder of The PPRO Group.
The research was conducted by Coleman Parkes for PPRO during November 2014. Coleman Parkes surveyed 300 people (150 in the UK and 150 in Germany) responsible for, leading the implementation or makes decisions on online payment solutions across a range of sectors.
UK retailers face international revenue loss
The research also suggested that despite a high proportion of UK businesses having a good awareness of overseas payment culture, they are not necessarily offering the options on their websites, causing many to miss out on a large slice of online overseas traffic.
According to the research commissioned by electronic payment specialists, The PPRO Group, three quarters of businesses (73%) cited in-country regulations (73%) and high charges (77%) as the main barriers to offering additional payment options to international shoppers. Yet nearly one in ten retailers admit that between 31% and 51% of all transactions come from international customers.
With familiar overseas payment options including iDEAL, SEPA Direct Debit and SOFORTbanking starting to find a home on UK-based sites, adoption levels are still relatively low with 23%, 42% and 46% adoption rates, respectively.
“Despite international payment options beginning to resonate with UK retailers, red tape and additional charges are putting pay to many retailers offering the payment preferences of international customers, as well as UK-specific payment preferences like credit and debit card,” explained Schreyer.
“The research also revealed that over one third of respondents simply don’t see the need to offer additional options, meaning they could be missing out on a vital revenue stream.”
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