Streamlining online payments for a faster, smarter checkout experience

Image supplied

In much the same way that software can be far removed from the actual needs of the end user, so disconnects occur between online merchants and their audience.

E-commerce traders may offer limited payment options or non-standard interfaces that confuse shoppers. They may also surprise buyers with hidden costs or unclear return policies and may even omit trusted secure payment icons.

Word Wide Worx’s Online Retail in South Africa 2024 report found that 16.9% of more than 200 retailers surveyed cited a lengthy and complicated checkout process for cart abandonment.

South Africa is no means alone in this regard.

E-commerce: the game changer driving business growth in SA

Mandisa Guliwe  10 Dec 2024

The Barnyard Institute, a global online user experience research specialist, found that almost one in five customers in the US will abandon their carts when the checkout process is too complex to negotiate.

It says ideally, the checkout flow should be between 12 and 14 form elements, where the existing checkout flow of many e-commerce platforms can be as high as 23.48 elements.

Andy Higgins, MD at Bob Group, is not at all surprised by these findings.

“The buyer is the most affected by complex online payment processes. When faced with tedious forms, forced account creation, or hidden costs, buyers abandon their shopping carts out of frustration or mistrust,” Higgins says.

“This directly impacts their trust in the platform and their likelihood of returning, which can significantly harm the merchant's reputation and sales. Ensuring simplicity and transparency in the payment process is essential to building a loyal customer base and enhancing the overall shopping experience.”

He says any deviation from standard processes is a huge pain point, as most buyers expect a familiar and straightforward checkout experience. For a platform to be successful, it must offer customers transparency, simplicity, and security throughout the checkout process.

“It’s critical to streamline the payment process at every stage of the buyer’s journey, but especially during checkout. By the time a buyer reaches this stage, they have already invested time in selecting products and are ready to make a purchase.

“Any unnecessary friction at this point, such as a confusing interface or unexpected costs, can lead to immediate cart abandonment. Additionally, building trust earlier in the journey – by showcasing secure payment options and clear policies – lays the foundation for a smooth checkout experience, reducing drop-offs.”

Higgins makes several recommendations for e-commerce businesses to reduce cart abandonment. These include:

• Adopting standard UI/UX practices: Ensure the checkout process feels familiar, intuitive, and hassle-free.
  
• Offering multiple payment options: Cater to diverse buyer preferences, including credit cards, EFT solutions and other alternative payment methods. Some banks offer their own EFT payment solution, which can increase trust for payers when available.
  
• Being transparent: Clearly display costs, including delivery fees, early in the process to manage expectations.
  
• Building trust: Use secure payment gateways, trust badges, and visible contact/support options to reassure buyers.
  
• Streamlining the process: Avoid unnecessary steps, allow guest checkout, and autofill information where possible. By putting the buyer first and addressing potential friction points, businesses can create a frictionless checkout experience that retains more customers.

Interestingly, the World Wide Worx survey found the predominant reason for cart abandonment is credit cards being declined, which more than half of the respondents (52,2%) cited as a significant issue.

The next most common concern involves distrust in sharing credit card information with a site, reported by 26.9% of respondents (26,9%).