Shoppers want new ways to pay, including prepaid cards, spread payments and try-before-you-buy but are less keen on using cryptocurrencies, despite the hype.
According to a survey of 650 shoppers by Intrapay, consumers want payments to give them more control of their money: spreading the payments across the year, receiving real-time updates on the payment status and receiving help with budgeting. They are also increasingly keen on paying when they decide to keep goods that have been delivered or sending them back.
Direct debit, debit cards and credit cards remain the most popular method of purchasing goods online but demand is falling, in favour of alternative payments, including prepaid cards, bank transfers and mobile payments.
Meanwhile, 50% of consumers have abandoned a transaction after being required to enter too many details into an online checkout.
Hidden delivery charges are the second-largest reason for abandoning a transaction – over 50% of respondents failed to complete a purchase when faced with unexpected extra charges.
Almost 90% of respondents reported that security is one of the most important aspects of their online payment experience, while four in ten demand greater convenience.
“Security versus convenience is still a significant driver in consumer behaviour online, but what our research shows is a shift to new, innovative alternatives, and greater transparency from merchants and their payment partners. At Intrapay, our ethos centres around the customer experience: if they demand it, we will build it. The consumer is in control of the payment and future ecommerce success will depending on listening to these voices, building the adaptive technology based on what consumers want, rather than what businesses tell them they want.”
Paul Winslow, Chief Marketing Officer at Intrapay
Despite all the hype around cryptocurrencies such as Bitcoin, fewer than 2% of consumers have used cryptocurrencies and only 6.5% wish to use it to buy items online in the future.
The results suggest that consumer demand for cryptocurrency, both now and in the future, falls well short of hype within the Bitcoin bubble. Consumers are currently more than seven times more likely to buy something online with a prepaid card than via cryptocurrency, and more than twice as many would like to use prepaid cards in the future, rather than the volatile digital currency.
“Cryptocurrencies may have enjoyed plenty of hype over the last year, but are just not viable as a mass payment method in the current market. Retailers looking to grow must understand consumers and offer the payment options that will drive loyalty, engagement and conversion. This cannot come from forcing unwanted payment methods on them: it must come from listening to retailers and their consumers, meeting their needs with payment methods that truly engage the consumer and add value to the business.”
Koen Vanpraet, CEO of Intrapay
