Study: Retailers are not sufficiently concerned with payment methods

Study: Retailers are not sufficiently concerned with payment methods

The “payment wheel” is spinning faster and faster. A study by Payone shows how important the right composition of the payment method portfolio is for revenue generation and why merchants should make better use of the various potentials. […]

The range of payment methods in the market has increased by leaps and bounds in recent years – merchants are increasingly having to deal with various payment methods. In the course of the study “Dealing with payment systems today and in the future”, 340 German Payone merchants were interviewed about this development.

The alarming result: when asked how often they deal with the optimization of the current payment range as well as innovations, 15 percent of companies answered “never”. And another 18 percent of retailers only deal with the topic “once a year or less often”.

Almost 20 percent of the surveyed participants would only deal with the review of their payment method concept if a missing payment method leads to possible sales losses and dissatisfied consumers or if they are actively addressed by the affected end customer. A little more than a third of traders say that they rely on the media as the main source of information and, depending on the news situation, sporadically deal with market developments and technical innovations.

Payment mix as a revenue driver

Almost half (48 percent) of the survey participants consider the correct composition of the payment method portfolio to be important, of which 27 percent consider it very important. But although the majority is aware of the importance of the payment mix and its immediate connection in terms of sales, many merchants leave enormous potential lying idle: according to the survey, 23 percent of companies estimate that between one and ten percent of purchases do not materialize because they do not offer the payment method preferred by the customer. Furthermore, four percent even accept cancellations of more than ten percent because customers are not willing to switch to reserved payment methods as an alternative.

Currently, cash is still the most popular means of payment for the majority (87 percent) of the surveyed merchants. But 86 percent expect contactless card payment to take the lead in five years. The importance of smartphone payments via NFC or barcode, on the other hand, is currently still classified as relatively low, but according to almost 60 percent of merchants, it will become more important in the next five years. In the medium term, only a few merchants see the establishment of biometric methods as a competitive payment method in the payment mix. And the use of cryptocurrencies is also rather viewed with skepticism and is only relevant for nine percent of the participating companies.

*Alessa Kästner is a graduate of the Burda Journalism School, volunteered at Playboy and wrote for titles such as ELLE, Focus as well as advertising and selling. Her core topics as an INTERNET WORLD editor: Digital lifestyle, marketing trends, sustainability and social media.

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