More than half of consumers want more payment options at checkout, Paysafe study finds

Study Finds 63% of Online Businesses Globally See Payment As A Competitive Advantage In Response To Changing Consumer Preferences, But Barriers Remain

The COVID-19 pandemic has seen the majority of online businesses (61%) accelerate their checkout upgrade plans as a direct result of changing payment preferences of consumers (65%) and customers requesting more payment options (52%). This is according to new research from the specialist payment platform Paysafe (NYSE: PSFE) as part of its “Lost in Transaction” series of reports, in which 1,100 small and medium-sized enterprises (SMEs) around the world, who operate online and in-store, were asked how their payment offerings had changed over the past 12 months.

However, with 40% of respondents viewing cart abandonment levels as more than a minor issue, and 41% seeing an increase in fraudulent transactions since the start of the pandemic, the checkout remains a hindrance for many, forcing them to reassess what they require from their payment partner. In fact, reliability (as identified by 42% of those surveyed) has now exceeded cost (32%) and security (26%) as the most common priority for online businesses when looking for business. ‘a payment partner.

In an effort to improve checkout and attract more customers, offering alternative payment methods is becoming more and more important for online businesses – digital wallets and eCashes are growing in popularity. 61% of online businesses now offer digital wallets and 67% have seen an increase in the percentage of sales made through this method in the past 12 months. Elsewhere, 29% already offer eCash and more than a third (35%) plan to do so in the next 12 months.

According to the results, online businesses are also adopting cryptocurrencies massively. Almost half (48%) of all companies are looking to bring cryptocurrency to their checkout as soon as possible, with almost three in five (59%) believing it will help them expand their businesses into new countries.

As online businesses continue to diversify their payment offerings, providing simplified, secure and reliable payment becomes paramount. A third of online businesses currently say they are easy targets for fraudsters (33%) and uncompetitive when it comes to fraud prevention (34%). Although 59% believe that having more payment methods available at the checkout is an effective strategy to reduce fraudulent transactions, 31% do not think they have all the tools necessary to minimize such activity in their checkout.

Along with fraud prevention, online businesses are also looking to their payment partners to improve cart abandonment rates, with respondents seeing an increase in this rate over the past 12 months, mainly due to the rejection of cards (24%) or the inability of consumers to pay with their preferred payment method (16%).

Paulette Rowe, CEO of Integrated & Ecommerce Solutions at Paysafe, commented: “Since the start of the pandemic, more and more online businesses have learned the hard way that not having a frictionless or secure payment experience. will kill their sales. On top of that, shoppers are now demanding a wider choice than ever of alternative payment methods – such as digital wallets and eCash – and our research indicates that this shouldn’t decrease. With the holiday season approaching, reflecting the busiest online shopping time of the year, those who are successful will come out strong and avoid high cart abandonment rates. For those who are still catching up, this is actually easier to resolve than they think, but they should address it quickly and work with a payments partner who can meet their specific needs, offering the wide range of payment methods that consumers demand today.

For more research insights, as well as additional analysis, read the full report here: https://www.paysafe.com/en/blog/lost-in-transaction-finding-competitive-advantage-at-the -checkout /

About the research

To compile this data, Paysafe commissioned a survey from Sapio Research of 918 online companies (with a company size of 1-50 employees) based in the US, UK, Canada, Brazil, Bulgaria, Italy, Austria and Germany between October 22 and November. 1, 2021.

About Paysafe Limited

Paysafe Limited (“Paysafe”) (NYSE: PSFE) (PSFE.WS) is a leading specialty payment platform. Its main purpose is to enable businesses and consumers to connect and transact seamlessly with state-of-the-art payment processing, digital wallet and online payment solutions. With more than 20 years of experience in online payments, an annualized transaction volume of US $ 100 billion in 2020 and approximately 3,400 employees in more than 12 locations around the world, Paysafe connects businesses and consumers to through 70 types of payment in more than 40 currencies around the world. Delivered via an integrated platform, Paysafe solutions are geared towards mobile initiated transactions, real-time analytics and convergence between physical and online payments. More information is available at www.paysafe.com.


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Elaine R. Knight