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Is payment security your Black Friday weak link?

Black Friday is more than discounts—it’s a test of trust. With nearly half of UK shoppers ready to abandon carts over payment fears, retailers face a critical challenge. Can you turn fleeting clicks into lasting loyalty?

  • Marina Mouka
  • November 21, 2024
  • 4 minutes

As Black Friday approaches, e-commerce retailers are facing a critical opportunity to capture the attention of millions of consumers, but they must act fast.

According to new research from Mollie, nearly half (48%) of UK consumers would abandon their online shopping due to concerns about payment security. With such a significant risk of lost sales, retailers are being urged to optimise payment processes, provide robust security features, and create a seamless checkout experience to ensure they don’t miss out on one of the busiest shopping days of the year.

The findings of Mollie’s European E-commerce Report also shed light on consumer expectations, revealing that the UK market places high demands on the e-commerce experience. Key insights include:

  • Efficient checkout: 89% of UK shoppers say a smooth checkout is crucial (vs. 81% European average).
  • Payment options: 86% prefer a variety of payment methods.
  • Customer support: 83% value responsive customer service.

Alongside a diverse range of payment options and quality customer support, payment security is crucial to building consumer trust and boosting conversion rates during the high-pressure shopping season.

“Black Friday marks the official start of a season of increased e-commerce traffic and spending. The businesses that can reassure consumers about the security of their transactions, offer a wide range of payment methods and streamline their checkout process will be positioned to benefit from significant sales growth,” said Dave Smallwood, UK Managing Director of Mollie.

While the lure of steep discounts is a primary draw for UK shoppers, price sensitivity remains high. The report shows that 47% of UK consumers are strongly influenced by price and will actively seek the lowest offer, shopping around until they find it.

As such, nearly half (46%) of UK shoppers engage in thorough price research before making a purchase, and 40% are more inclined to buy discounted items during sales events like Black Friday.

This price-conscious mindset means that retailers must focus not only on offering competitive prices but also on providing a smooth, secure shopping experience to maintain shopper confidence and avoid abandonment at checkout.

A global shift toward alternative payment methods

The growing demand for security is compounded by the rise of alternative payment methods (APMs). Research by payments provider Paysafe found that 48% of consumers now prefer digital wallets, with significant adoption of bank transfers and online cash payment solutions. Retailers looking to capitalise on Black Friday sales must be prepared to offer a variety of payment options that cater to the changing preferences of consumers, particularly as e-commerce becomes increasingly digital and diverse.

💡For fintech companies and payment providers, this means ensuring that their platforms are equipped to handle a variety of payment methods efficiently and securely.

Rob Gatto, Chief Revenue Officer at Paysafe, noted, “Merchants who offer multiple payment methods and a seamless payment experience will create differentiation, attract new audiences, and increase conversion rates.”

With rising concerns about fraud, particularly around Black Friday deals, the need for secure and reliable payment systems is even more critical.

Emma Lovell, CEO of the Lending Standards Board, warned that the surge in online transactions creates a prime opportunity for fraudsters. Scams involving fake deals and counterfeit websites can easily deceive bargain-hunting shoppers, making it imperative for retailers to bolster their fraud detection systems and collaborate with financial institutions to prevent fraudulent activity.

Black Friday Dos and Don’ts

As the retail sector gears up for Black Friday, there are several key dos and don’ts that e-commerce businesses should keep in mind to ensure they make the most of the day’s opportunities.

The bright side of Black Friday

As Black Friday approaches, ecommerce businesses have a unique opportunity to not only capitalise on increased traffic and sales but also to build trust with consumers. By prioritising payment security, offering a wide range of payment options, and ensuring a seamless customer experience, businesses can drive conversions and set the stage for continued growth through the holiday season.

For fintech firms, there’s also a chance to play a pivotal role in supporting retailers with the tools and services necessary to deliver secure, smooth, and efficient transactions. As the ecommerce landscape evolves, those that can keep up with consumer expectations while maintaining security will be the real winners this Black Friday—and beyond.