More than 70% of retailers run on outdated paytech

Research from Barclaycard has revealed that more than seven in ten retailers haven’t introduced any new payment technology to their website in the last two years.

While 86%  of retailers say they are looking to increase online transactions over the next 12 months, the study suggests that many aren’t providing the best possible eCommerce experience for their customers.

The study shows that retailers could be missing out on £18 billion** in sales each year, as consumers abandon online baskets worth almost £30 a month. Barclaycard research also shows that 15% of shoppers have chosen to abort an online purchase because they couldn’t pay using methods such as ‘one-click’ ordering, while 16% highlight long checkout processes as their biggest frustration when buying online***.

“The payment process is a crucial step in the customer journey – this is why it’s essential that retailers ensure they’re keeping up with the latest payment technology developments,”, George Allardice, Head of Strategy, Barclaycard Payment Solutions, told PaymentEye.

“An up-to-date payment system plays an important role in supporting business strategy, helping online retailers utiltise rich data and insight into customer behavior. This can, in turn, inform day-to-day decision-making and updates to the ecommerce site itself.”

“Having the latest payment technology can also help to increase revenue – our research reveals that businesses could be missing out on £18 billion** in sales each year through abandoned baskets, so creating a frictionless check-out experience is key.”

One in five (22%) of consumers also said they would like to see more retailers incorporate faster payments technology into their websites to speed up the check-out process.

Meanwhile, retailers who have introduced new payment technology to their website are reaping the rewards. Almost all respondents (96%) said this has enhanced the online experience for their customers, and 64% said payment processing is faster.

The research also showed that many vendors are missing the data or insights they need to increase conversion: 59% are unaware of the average buyer drop-out rate on their website and just 27% analyse the browsing behaviour of shoppers who abandon their baskets.

“To remain relevant, retailers should take an omnichannel approach to payments. Although desktop remains a central platform for online shopping, consumers are increasingly on-the-go, browsing ecommerce sites on their mobile or tablet when out and about – and the shopping experience must therefore adapt accordingly,” Allardice continued.

“This means ensuring the checkout process is as seamless as possible, for example using one-click payments and making sure there’s no need to open new browser windows or other applications to pay. And of course, this seamless experience needs to be consistent across all channels – it should be just as easy to pay whether the consumer is using a desktop computer, smartphone or tablet.”


Consumer research was conducted by Opinium surveying 2,001 adults (18+) from 26/03/2018 – 03/04/2018 with a sample of 2,004 people who have abandoned an item online. Merchant research was conducted by Opinium surveying 314 senior managers in retail (companies with an online presence) from 26/03/2018 – 05/04/2018.

** £18,242,309,693. Figure calculated by multiplying the abandoned basket per person per month by 12 and multiplying by the total population (18+).

*** Online interviews were carried out with 253 decision makers within B2C SME retailers between 31 March and 1 April 2017. A separate study of 2,010 adults aged 18+ (nationally representative) was conducted between 4th and 7th April 2017. All research was carried out by Opinium Research.

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