By DECTA’s recent report revealed that enhancing your checkout design can increase conversion rates by 35% on large e-commerce sites, presenting a $213 billion opportunity for businesses to reduce customer friction. In the US, a website that requires login was the second highest rated source of negative experience with almost 49% of all respondents reporting that they would likely abandon shopping if they encountered this. Embedded finance tackles these problems by offering fast, secure and seamless checkout experiences.
A recent study by DECTA showcases the role of embedded finance in boosting conversion rates and improving the online shopping experience.
The primary goal of the study was to showcase how adoption of embedded finance leads to higher conversion rates and positive customer experience. For this, DECTA conducted a survey among British online shoppers aged 19-68 and US shoppers aged 23-68 years totalling 1504 respondents.
The report 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% 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% of Brits considering it a very important feature, and 49% of respondents from both countries stating that they would abandon a purchase if their preferred payment method is not available.
● 54% 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% of respondents reporting that they would likely abandon shopping if they encountered this.
Complete Study Results: https://www.decta.com/company/media/the-role-of-embedded-finance-in-boosting-conversion-rates-a-report