A study performed by Skrill last Wednesday revealed that online shoppers will abandon a purchase for a multitude of reasons, most of which Bitcoin payments solve. The study showed one in every four consumers will quit their purchase altogether if the retailer doesn’t offer their preferred method of payment.
Of 2000 people surveyed, 38 percent told the online payment processor that they would leave their cart incomplete if they are forced to create an account through the site. 32 percent said if the website is asking for too much information, consumers also will not complete their purchase due to mistrust of the website’s security.
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The study’s showing of one in four consumers leaving at checkout if the retailer does not offer their preferred method of payment is one of the most critical parts of the study. Chantal Willis, Vice President of eCommerce at Skrill, said this in response to the study’s findings:
“Our data shows while businesses are investing huge sums getting customers to the point of making a purchasing decision, they risk not completing the sale if they only accept card payments. They must ensure they have systems in place to cater for the half of the population who prefer alternative payment methods. Given online stores attract customers from anywhere in the world, the need to offer a wide range of payment options is absolutely crucial.”
While digital currencies such as Bitcoin only were the preferred method of payment for one percent of the surveyed population, the study shows many major flaws in the way online retailers do business. Most of these payment methods are fairly simple to implement. Retailers should have a wide range of payment options, or continue to deal with lost business.
Bitcoin and the Cryptocurrency Retailer Solution
One argument is that retailers simply can’t keep up with all of the different payment methods. The major companies like Skrill, PayPal and now Apple Pay all can see mainstream website integration, but it comes at a cost. Each service charges a different fee; something that retailers constantly battle.
The problem of fees makes the perfect case for Bitcoin. BitPay announced earlier this year that they were free forever, making Bitcoin a no-brainer for any retailer to accept. On top of that, there are no fees for changing bitcoins directly into the retailer’s currency of choice.
People are picky, plain and simple. If a company doesn’t allow the consumer to pay with a credit card, digital currency or payment processor, that customer can take their business elsewhere easily. To combat the problem, retailers need to bite the bullet and take the fees for all methods of payment if they refuse to accept bitcoin.
Willis expanded on this as well:
“Growing numbers of consumers feel comfortable buying goods and services online and they want to be able to pay in the way that is familiar and convenient. Businesses in our towns and on our high streets already provide a variety of payment options for customers, so it seems odd they would not replicate this online. Imagine a supermarket unveiling a brand new store that looks great but only accepts cheques as payments.”
Retailers have options. If they want to compete and retain customers, they need to start diversifying their payment methods; even if that means diving into a digital currency area they don’t fully understand.
What do you think? Comment below!
Photos from Skrill and Flickr