New research from payment processing firm DECTA showcases the role of embedded finance—an emerging software distribution model that integrates financial services into existing product ecosystems through partnerships with financial infrastructure providers—in boosting conversion rates and improving the online shopping experience.
The firm’s new report, Improving the Online Shopping Experience: The Role of Embedded Finance in Boosting Conversion Rates, also delves into the main reasons why consumers may abandon their online shopping journey and explores the potential of additional revenue streams that online retailers can gain through the adoption of embedded finance.
Key findings:
- 90 percent of companies in the United States have loyalty programs, collectively representing a staggering 3.3 billion memberships. Loyalty programs can play a significant role in retaining customers over an extended period of time.
- Availability of preferred payment method is considered a crucial factor for a positive customer experience, with 85 percent of Brits considering it a very important feature, and 49 percent of respondents from both countries stating that they would abandon a purchase if their preferred payment method is not available.
- 54 percent of Americans report that embedded add-ons like insurance or financing are either very important or the most important factor for a positive purchasing experience, addressing rising popularity and demand for Buy Now Pay Later solutions.
- Reducing customer friction is a $213 billion opportunity for businesses: In the US, a website that requires login was the second highest rated source of negative experience with almost 50 percent of respondents reporting that they would likely abandon shopping if they encountered this.
DECTA conducted a survey among British online shoppers aged 19-68 and US shoppers aged 23-68 years totaling 1504 respondents.
