Online withdrawals: 70% occur during payment

Fintech payment method Nuvei publishes a study that reveals the five main trends for online payments. According to research, 70% of abandonments in virtual purchases occur after the customer has initiated the payment flow

A study by Nuvei, a Canadian payment methods fintech, highlights that optimizing systems to prevent transaction difficulties from leading consumers to give up on an online purchase even after entering the payment flow and adapting them to reduce the occurrence of false refusals of payment are two of the main trends in the payment methods market.

The report also notes three other trends that should be monitored by e-commerce companies that want to improve their business in terms of payments, customer loyalty and reduce costs with avoidable losses.

Five payment method trends

When shopping online, consumers are looking for price and convenience, but they also want the checkout experience to be simple and efficient. This is a point of caution, as the study showed that 70% of cancellations in online purchases occur after the customer has already entered the checkout flow. This means that if the consumer does not make the purchase due to problems of this nature, the company loses all efforts to attract and retain that customer.

Fortunately, this problem can be overcome optimization of the payment systema trend capable of recovering, according to the Nuvei study, 260 billion dollars in sales that are lost every year due to this type of bottleneck.

Optimization also helps you avoid so-called false declines, which occur when the card operator mistakenly cancels authorization of a payment. Losses associated with this type of problem amount to $443 billion. A specialist in payment systems optimization, Nuvei recommends parties work together to identify the causes of payment failures and provide real-time data to increase authorization rates.

Another relevant trend is investing in in-depth knowledge of payment preferences positions — in other words, it is recommended that payment companies know in detail the features preferred by consumers in each country, as this can significantly influence conversion rates. Once these preferences are identified, systems must be adapted locally to offer the option that best suits that specific audience. These include “buy now, pay later” (BNPL), instant bank transfers (like Brazilian photos), and shopping vouchers.

According to research it is also impossible not to monitor the evolution of purchases made via mobile deviceswhich last year already accounted for 60% of global e-commerce, or 2.2 trillion dollars. Shopping on these devices represents one of the cornerstones of multi-channel retail, much appreciated by consumers interested in a comfortable shopping experience and which combines with digital wallets and payment applications. It’s essential that your mobile payment system is optimized, offering features like one-click checkout, wallet integrations, and personalized recommendations.

The Nuvei study also identified a trend in payment methods issuing white label cards: This market is expected to grow from $500 million in 2023 to $1.3 billion in 2027. White labeling strengthens customer loyalty and encourages greater spending by offering flexible payment options. Replacing payments via bank receipts, for example, with virtual cards issued on the spot allows e-commerce companies to improve their cash flow, using sales revenue to pay suppliers or employees.

Finally, the trend for e-commerce is to advance of account-to-account payments (A2A)with an estimated growth of 13% until 2026, when it is expected to reach $850 billion globally. This is a huge opportunity for the markets, especially due to the intense acceptance of this type of payment method. An example is pix in Brazil, but A2A systems are already successful in countries such as Holland, Poland, India, Malaysia and Thailand, where they also represent the main form of virtual payment. Even in the United States, a country where adoption is slower, the forecast is that A2A will see a leap, especially with the launch of the FedNow instant transfer system and the new law on credit card competition.

For further information on the study simply access:

https://info.nuvei.com/hubfs/White_papers_and_reports/eCommerce_Payment_Trends_2024 PTBR.pdf

Website: https://www.nuvei.com/

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.