A study by leading ecommerce and digital agency, Visualsoft, has revealed the UK’s top retailers are inhibiting their online sales potential by up to 30 per cent by not offering a range of payment options for customers.
Findings revealed almost one in five (19 per cent) of the UK’s top 240 retailers are failing to offer a payment choice aside from a mainstream credit or debit card.
This is despite prominent research indicating that offering at least three more payment options can increase conversion by 30 per cent.
Allowing non-bank card payments, such as mobile payments and vouchers, can also increase the appeal of sites.
This gives consumers confidence that they are using payment methods they are personally comfortable with, and in turn can help increase the speed of their purchase.
The report found that PayPal is the most popular alternative payment method, with 71 per cent of retailers offering this alongside a traditional credit or debit card.
Visualsoft data also shows that retailers offering PayPal usually see around 25 per cent of customers using this option.
International growth may also be limited, with 38 per cent of retailers offering no option to pay with international currency.
Lack of local payment options for international customers can lose sites up to 13 per cent of customers according to some industry estimates.
“It’s the final – and potentially most critical – stage in the purchasing cycle, so it’s surprising that so many of the UK’s biggest retail players are limiting their conversion potential by overlooking the importance of payment options,” says Tim Johnson, chief sales officer at Visualsoft.
He continues: “Perhaps more worrying still is that retailers are shying away from the potential of international sales.
“Outside of the UK, customers are already well adjusted to using alternate payment types – such as in Holland, where payment solution, Ideal, processes around 55 per cent of transactions.
“This could prove crucial in a post-Brexit era, when providing US shoppers with their most popular payment options and charging in dollars could pay dividends.”