How Payment & Checkout Options Affect Conversion on E-Commerce Websites
Cart abandonment is one of the most difficult and frustrating challenges that any e-commerce retailer has to face. According to the results of a recent in-depth study, a significant proportion of customers abandon the checkout process after they have completed the vast majority (90%) of required steps, clearly indicating some type of friction at the point of payment.
The study was carried out in collaboration between the Interactive Media in Retail Group (IMRG), which is the UK's online retail association and Ecommpay, a major payment service provider. It found that there are 'significant variations' in the performance of e-commerce websites in terms of conversions, linking these variations to the availability of payment methods and the configuration of checkouts.
On average, 58% of checkout attempts were converted into sales on e-commerce websites in the UK. Guest orders converted at a rate of 52% while orders from registered customers were higher at 64%. Checkouts that only had a single page achieved better conversion rates (61%) than those that utilised multiple pages (56%).
When it comes to payment methods, traditional debit and credit cards accounted for around 50% of total revenues. The remainder of sales were carried out using various different payment methods including digital wallets like Apple Pay, Google Pay and PayPal along with buy-now-pay-later options such as Klarna. The study found that half of UK e-commerce retailers had not yet implemented localised payment options, which are designed to accommodate overseas buyers wishing to use 'region-specific' methods.
Express checkouts were found by the report to be of high importance to customers. Retailers which offered four or more methods of express checkout enjoyed conversion rates at 67%, a figure which drops sharply to just 54% for those with only one express checkout option. Websites without any express checkout option at all fared worst, achieving conversion rates of just 52%.
At Brickweb, we design, build and implement world-class e-commerce websites that operate at the optimum level of efficiency. All payment methods can be securely integrated in any currency, while our checkouts have been designed to provide the very best user experience.
Partnered with globally-renowned organisations like Google, Apple, IBM and Microsoft, Brickweb is able to offer the highest levels of service and security across the board. If anything ever goes wrong, you can enjoy 24/7 emergency support from one of our experts.
If you want to raise your game when it comes to payments, checkouts and the e-commerce experience as a whole, then you need a website from Brickweb. Browse our website to find out more and, while you're there, please take a moment to subscribe to our newsletter. We also invite you to follow us on your favourite social media platforms. Choose from:
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