Findings from the Adyen Digital Index demonstrate how retailers can maximise the peak season and grow beyond the all-important sales period.
- Create a smooth shopping experience for customers
Three in five (61%) consumers reported that they would leave a store or abandon the checkout if they could not pay in their preferred payment methods. In fact, 26% of consumers no longer carry wallets, relying instead on the ability to tap their phone to pay.
For online and in-store journeys, over one-third (36%) of consumers want to shop online and finish in-store or vice versa, but 78% of retail businesses lack this capability.
2. Payment methods
Self-checkout and Tap to Pay are the most popular ways to pay in Australia. However, only 15% of retailers enable self-checkout and just 24% have mobile point of sale (mPOS) solutions. The most popular way Australian consumers choose to pay include self-checkout (58%), Tap to Pay (56%), mobile wallets (35%) and QR codes (18%).
3. Building shopper loyalty
The majority (61%) of Australian consumers want businesses to improve the ways their loyalty is rewarded. One-quarter (25%) of businesses say they lack customer data and the technology infrastructure to truly understand their customers and just 18% know their customers well enough to personalise items.
Retailers who harness customer data to personalise offers reported 11% higher revenue growth. The most popular loyalty programs include payment-linked loyalty (32%), loyalty apps (17%), exclusive offers (12%) and private label credit cards (9%).
4. Reducing payments fraud
Payment fraud costs the global retail industry US$429 billion, and in Australia A$10.5 billion. Concerningly, more than one in three (36%) consumers feel more unsafe shopping today than they did 10 years ago.
Over half (51%) of retailers say fraudulent transactions and chargebacks are a significant cost for the business, yet only 67% of retailers said that they have effective fraud prevention systems in place. The good news is that 58% of retailers are considering working with a payments provider that offers a chargeback liability guarantee.