41% of retailers believe lack of payments innovation is hindering growth, Mollie reveals – ThePaypers

Posted on March 19, 2021 by Design in Design Innovation | 0 Comments

Mollie has published a research unveiling the state of payments in retail today as well as the challenges and opportunities in the retail market following a turbulent year.

According to the press release, the findings, based on responses from 2,500 European retailers, highlight the difficulties retailers face in ecommerce environments. For example, when asked the biggest challenges in online retail, 65% retailers cited converting shoppers to purchase, 43% rated high costs for shipping or payment providers, and 41% selected low margins. And for a third of online retailers (34%), cart abandonment is the biggest challenge with 30% reporting that 6-10% of carts were abandoned. Additional key findings include:

EU and UK merchants rely on a multitude of channels to sell: As bricks and mortar shops closed their doors, online has become far more important. Specifically, 46% of all revenue now comes from an online webshop. And on average, 37% of sales occur via third-party marketplaces such as Amazon. Finally, as much as 16% of annual revenue now comes through social media platforms like Instagram.

Two-thirds of retailers had revenues impacted by the pandemic: The pandemic has had both a positive and negative effect on retail sales. 23% of merchants saw sales increase last year. Conversely, 29% either saw no change or had sales decrease somewhat, and 17% saw sales decrease significantly. Of those who reported an increase, revenues went up on average by 29%. The average decrease in revenues was 27%.

Issues with the payments process can hurt sales and growth: 31% said that an issue with the payment service offered or the range of payment service options provided was the reason for abandoned carts. 41% cited a lack of innovation in payment systems as hindering growth.

‘Buy now, pay later’ now offered by more than a fifth of retailers: With many consumers looking for more flexible ways to pay during the pandemic, 22% of retailers now offer ‘buy now, pay later’ or Apple Pay payment methods. Furthermore, 20% offer Google Pay. This is set to increase with 31% looking to improve payment systems to help grow online revenue within the next 12 months.