Payment Innovations Spark Sky-high Expectations, as 88% of Brits Will Abandon Transaction if Faced With Friction

New research into online payments from Europe’s leading open banking platform, Tink, reveals sky-high expectations for seamless, secure transactions as payment choice increases.

The survey of 2,000 UK consumers found that new payment innovations are being embraced — with 76% of consumers pleased with having more choices in how to pay. However, the tolerance for poor user experiences is low. Nearly nine out ten (88%) of respondents said they would abandon a purchase if they were faced with friction while paying. Financial services providers might be failing to deliver secure, frictionless payment options.

User experiences are exposed by high expectations.

The surge in hassle free payments has been welcomed by consumers, as nearly three quarters (70%) said new payment methods have simplified the payments process, while 82% said it’s becoming easier than ever to make payments quickly and simply.

The arrival of new payment options has raised consumer expectations. A majority of consumers expect instantaneous payments, or that money is available immediately (77%) Money will be sent and received instantly, while more than half of consumers (58%) expect payments online to be made in just one click.

Younger generations have higher expectations. Nearly two-thirds of the 18-34 year-olds (63%) expect that they can pay with just one click. And nearly half expect that they will be able to purchase everything from their phones.

High expectations can lead to a low tolerance for poor payment experiences, and younger generations are more sensitive to any form of friction. For example, 37% of 18-34-year-olds believe there are too many steps to take and too many details when it comes time to make online payments.

Frustrations or friction can cause you to drop your productivity.

While online payment options are great, many consumers worry about security. In order of concern, Tink’s research found that consumers would abandon a payment if they are:

  1. Beware that the payment method you choose is not secure
  2. I have to give my personal information to a third party
  3. You will be redirected to another website to complete the payment
  4. I have to verify my identity using a separate device

Consumers adopt new methods because they have more options for payment

Customers and businesses expect higher payment expectations than ever before. This is why they are continually looking for innovative ways to make the customer journey easier. Even though debit cards are still very popular for e-commerce transactions and direct debits continue to be popular, there is evidence that new open-banking payment methods are being used, especially in the younger generations.

For example, over one in ten (12%) of those aged between 18-34 are already using ‘pay by bank’ transfers to pay for utilities, indicating an appetite from young people to explore new payment methods on the market.

Tom Pope, Head Payments and Platforms at Tink commented: Our research shows that although there are many positive aspects to increased payment options and innovation, there are still many issues that can cause frustration and friction. Transactions too often end in abandonment if the experience is poor, which is bad for consumers and particularly bad for businesses, that can’t afford to lose customers at checkout.

“Consumers want to know that payments are secure and reliable – but increasingly they expect them to be embedded in a user journey to the extent that they almost become invisible. This is where open banking steps in.

“Open banking payment methods, often called ‘pay by bank’ transfers, can significantly reduce friction, improve reliability and enhance security, and can turn a previously negative payment experience into a competitive advantage for the merchant. As consumers embrace new payment methods and experiences become even more seamless, businesses who fail to adopt the latest payment technology may find they fall short of their customers’ expectations.”

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