According to the latest figures from IMRG, online checkout abandonment affected 37% of UK online transactions in Q1 this year- equating to £6bn lost in sales. Malcolm Berg, Director of Merchant Services at the online cash payments provider, Ukash, believes this highlights the need for retailers to offer more payment options to their customers.
“Ukash research* recently revealed that nearly half (46%) of online shoppers feel frustrated by the security questions asked when making purchases on the internet, and over a third (39%) have abandoned an online transaction because they thought they were being asked for too much personal information. With 98% of respondents to our survey, confirming they shop online, it’s clear that the internet is the gateway to consumers, and retailers need to make the most of this sales opportunity.
“In particular, there appears to be a frustration with having to give what feels like too much information when shopping online. We, therefore, believe that if retailers make their payment options more flexible for consumers, they are more likely to have a higher checkout rate.
“We also believe that a number of online retailers are ignoring the cash shopper – someone who would rather use cash than put credit or bank card details online or perhaps doesn’t have access to credit or a bank account such as the youth market. These are still important shoppers and could be ignored by ecommerce businesses at their cost.”
With Ukash, online shoppers can convert their cash into a unique 19 digit code which can then be used to pay directly for goods and services on the thousands of websites that accept Ukash transactions worldwide. This offers consumers a convenient and secure way to shop online without having to give any personal financial information.
Developed to enable cash consumers to shop online and protect their personal identity and financial information when making online transactions, shopping with Ukash reduces the threat of credit and debit card fraud for consumers. Ukash codes are purchased with cash in retail outlets such as shops, petrol stations and kiosks. The unique 19 digit codes can then be used to pay directly on any of the thousands of websites that accept Ukash transactions worldwide, or loaded onto prepaid cards and e-wallets.
“Our research highlights how cash is still a fundamental part of society, and Ukash enables retailers to incorporate this into their online sales,” continues Malcolm Berg. “With e-money like Ukash, all sectors of society that want to stick with conventional cash payment methods don’t need to lose out on great online deals, and they can still budget and look after their spare cash.”