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Payment security and fraud play a key role in cart abandonment for e-commerce merchants, according to a study by e-commerce solutions provider Radial Inc.
The study found that 48% of respondents cited Web site security and 45% listed security of personally identifiable information as their primary reasons for shopping cart abandonment. Subsequently, consumers are placing a premium on strong passwords for online transactions (50%), two-factor authentication (32%), and Verified by Visa and Mastercard SecureCode (37%). Consumers could cite more than one security feature they value.
At the same time, e-commerce merchants should reinforce the perception they provide customer security by offering on-screen prompts to strengthen password protection and implementing two-factor authentication methods, King of Prussia, Pa.-based Radial says.
“The e-commerce industry’s success hinges on prioritizing secure payment and fraud solutions,” Yvan Gilliard, senior vice president of payment solutions and omnichannel for Radial says in a statement. “The findings reveal that security concerns drive cart abandonment and directly impact customer loyalty.”
The study revealed that payment options also play a key role in customer loyalty and online shopping experiences. Some 58% of respondents consider the availability of multiple payment methods as key when choosing an e-commerce merchant. With that in mind, Radial recommends e-commerce merchants offer a broad range of payment options such as PayPal, Apple Pay, credit cards and buy now, pay later. Some 57% of respondents consider PayPal as the most trusted and widely used digital wallet, followed by Venmo at 33%, according to the study. PayPal owns Venmo.
When it comes to fraud prevention, consumers fear falling victim to phishing scams (40%), unauthorized credit card charges (41%), and encountering fake online retailers or websites (40%). In fact, one in three consumers have fallen victim to fraudulent activity in the past six months, wherein their credit card or financial information was obtained and misused without their consent, Radial says.
While consumers fear falling victim to fraud, they don’t want to see e-commerce merchants be overly cautious in guarding against fraud as declining legitimate orders can alienate them. Nearly a quarter of respondents (24%) say they would no longer shop at merchant if their online order was canceled due to suspected fraud.
In related news, grocery delivery and pick-up service Instacart has unveiled new features for its platform that make it easier for merchants to customize their storefronts and launch campaigns for holidays or special occasions.
Now merchants can add dynamic content to their homepage, including banners and other elements; create custom landing pages with images, text, and other elements that allow for text sections and merchandising; and build what Instacart terms shoppable campaigns that appear across their storefronts, using pre-built templates or their own custom layouts.
