Findings underscore the need for brands to prioritize secure eCommerce payment methods to reduce revenue losses and improve customer experience
Radial, Inc., a bpost group company, the leader in eCommerce solutions, today announced the results of a consumer survey that sheds light on the impact of security concerns on cart abandonment, underlining the urgent need for brands to prioritize secure payment processes and experiences. The research examined consumers’ experiences, preferences, and concerns regarding payments and fraud prevention within the online shopping experience.
“Our study leaves no room for doubt – the eCommerce industry’s success hinges on prioritizing secure payment and fraud solutions,” said Yvan Gilliard, Senior Vice President of Payment Solutions & Omnichannel at Radial. “The findings reveal that security concerns drive cart abandonment and directly impact customer loyalty. Brands must take away a crucial lesson: Embracing robust measures to safeguard transactions will inspire unwavering trust and elevate them to new heights of success in today’s hyper-competitive landscape.”
Security Concerns Fuel Cart Abandonment
In a fiercely competitive world of online shopping, security concerns are driving a surge in cart abandonment rates, dealing a heavy blow to brands. Radial’s study exposes the two primary culprits behind this trend: the security of the website being shopped on (48%) and concerns about the use and security of personally identifiable information (PII) (45%).
As economic uncertainty continues, consumers place a premium on secure online payments. The survey reveals the top three security measures consumers value the most: a strong password for online transactions (50%), two-factor authentication (2FA) (32%), and verified by Visa/Mastercard SecureCode (37%).
To capture coveted conversions and instill unwavering trust, brands must reinforce customer security by offering on-screen prompts to strengthen password protection and implementing 2FA measures. The time to address security concerns head-on is now, as the eCommerce space demands a relentless commitment to building consumer confidence and conquering cart abandonment.
“The findings reveal that security concerns drive cart abandonment and directly impact customer loyalty. Brands must take away a crucial lesson: Embracing robust measures to safeguard transactions will inspire unwavering trust and elevate them to new heights of success in today’s hyper-competitive landscape.”
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Unlock Customer Loyalty with ‘Sticky’ Payment Options
The research also revealed that the number of payment options provided have a great impact on customer loyalty and online shopping experiences. The majority of consumers (58%) consider the availability of multiple payment methods as an essential factor when selecting an eCommerce brand. To meet the preferences and needs of consumers, especially in times of economic uncertainty, it is suggested that brands prioritize offering a range of payment options such as Apple Pay, credit cards, Buy Now Pay Later (BNPL), and PayPal.
With the digital payments landscape reaching saturation, prioritizing consumers’ preferred digital wallets is essential. Survey results show PayPal as the most trusted and widely used digital wallet among 57% of respondents, followed by Venmo at 33%. Embracing these popular options helps brands thrive in a highly competitive market.
Striking a balance between choice and simplicity is vital to retain shoppers. Offering ‘sticky’ payment methods that align with customer preferences fuels consumer confidence and boosts conversion rates.
Fortify Trust: Combating Fraud with Robust Safeguards
Today’s consumers face a multitude of fraud schemes while shopping online. In fact, one in three consumers have fallen victim to fraudulent activity in the past six months, wherein their credit card or financial information was obtained and misused without their consent.
Online shoppers confront various risks and challenges, including phishing scams (40%), unauthorized credit card charges (41%), and encountering fake online retailers or websites (40%). With customer loyalty on the line, brands cannot afford to let bad actors prevail or risk the perception of being unsafe. Brands can support and protect customers by transparently communicating the safeguards they have in place, encompassing payment security and verified communication channels.
While protecting the bottom line against fraudulent orders is vital, being overly cautious and declining all suspicious orders can also alienate customers. Almost a quarter (24%) of consumers noted they would stop shopping from a brand if their online order was canceled due to suspected fraud. Finding the appropriate middle ground is critical in this scenario.
To address this challenge, brands must implement a robust fraud detection and payment solution that fuses the power of AI, ML, and human inference, such as Radial Payment Solutions. This strategic approach helps discern genuine fraud incidents from legitimate customer orders, safeguarding the bottom line and the overall customer experience. Building trust and ensuring a secure online shopping environment is paramount in pursuing eCommerce success.
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