It’s been clear for years that the future of online payments isn’t going to rely on a general consumer consensus focused on one, or even a handful of payment methods. While card payments have been the most popular method among consumers for many years, diversification of the payments landscape is accelerating more rapidly now than at any time previously.
Businesses understand this shift in consumer preferences and have been reacting to it. Our latest Lost in Transaction research report shows how businesses are establishing a more diverse checkout and their motivations for doing so.
The significance of COVID-19
Diversification of online checkouts is not a new trend, but it’s impossible to ignore how much COVID-19 has changed the payments landscape. In fact, 65% of businesses agree that the pandemic has changed consumer payment preferences, most notably through the adoption of alternative payment methods. 57% of businesses say they have seen a greater percentage of payments in their online checkout being made by digital wallets, with 39% confirming an increase in mobile wallet payments. Additionally, 28% have seen an increase in eCash payments and 15% have seen an increase in direct bank transfers.
The growth of crypto
Our research shows a firm commitment from businesses to bring cryptocurrencies into their online checkouts, with almost half (48%) of businesses confirming they plan to prioritize this as soon as possible. That is because over half (54%) of businesses already think that crypto is the future of payments, and 59% say adding crypto will enable them to target new markets.
Tackling cart abandonment
Diversifying the checkout isn’t only about winning customers. Businesses also aim to address cart abandonment by offering more payment methods. 69% of businesses describe their level of cart abandonment as a persistent issue, and one that is getting worse. Over the last year, 49% of businesses that have any cart abandonment in their checkout say it has increased. When assessing why this issue remains, two of the major reasons cited include card declines and the inability for consumers to pay with their preferred payment method.
A year for evolution
Over the next 12 months we will continue to see businesses commit to expanding the payment methods offered in their online checkout. Working with the right partner that can bring this range of payment methods through a single partnership and API will be crucial to making these ambitions become reality.
Daniel is Paysafe’s Chief Business Development Officer and is responsible for developing strategic partnerships designed to meet customer needs and grow new revenues.
With over 20 years’ experience in technology management, Daniel has pioneered ground-breaking initiatives from speech recognition systems at Nortel Networks and ISO/ITU standards for video coding, to FirePay’s digital wallet and risk management processes, which led to his appointment to the NACHA Risk Management Task Force. Daniel is also member of the advisory boards of Shyft Network and Smart Valor, two leading blockchain companies, as well as of the ETA Canadian Executive Council and the Merchant Payments Ecosystem (MPE). Daniel holds a B.Eng in Electrical Engineering from Ecole Polytechnique, a M.Eng from McGill University and a diploma in Network Engineering for the University of Toronto.
Daniel enjoys football (soccer) and used to compete in chess tournaments.
