A new report has revealed a surge in demand for digital payments as three in four European consumers say they’ll stick to their pandemic online shopping levels.
The ‘New State of Retail’ report from Checkout.com, the leading cloud-based global payment solutions provider, reveals that the shift to e-commerce is here to stay, with the pandemic accelerating the move to online.
The research reveals that across Europe, three-quarters (74 percent) of consumers have no intention to significantly reduce their online shopping now that they can revisit the high street. 80 percent of European consumers added that they intend to use a digital wallet such as Apple Pay, Google Pay or PayPal in the next 12 months with 40 percent planning to do so regularly.
In addition, 60 percent of e-commerce consumers stated that they will abandon their cart if they cannot pay with their preferred payment method. A new wave of digital payments is also underway with 43 percent adding that they plan to pay using QR codes, while 30 percent said they plan to use Biometric payments.
Three in 10 (31 percent) British consumers also added that they plan to purchase with buy now and pay later in the next 12 months.
European consumers have no intention to reduce online shopping even though the high street has re-opened
The study based on the views of 10,000 European consumers and 550 senior execs at Europe’s top e-commerce retailers also revealed that three-quarters (75 percent) of retail leaders believe the future of shopping is solely online.
It is no surprise when 37 percent of consumers responded that the increased online shopping has made their lives easier and more secure.
To ensure that retailers accommodate the shift towards online shopping, e-commerce leaders said they recognise the importance of staying agile, with 97 percent saying that to remain relevant, resilient and profitable, they will need to evolve their business models within the next 18 months.
One-quarter (25 percent) of merchants added that they are creating new local fulfilment centres to meet demand, while half (50 percent) have responded to increased cross-border demand since the start of the crisis by expanding the range of payment methods they offer. However, 60 percent stated they still don’t have the payment insights needed to drive better performance.
Moshe Winegarten, senior vice president at Checkout.com, said in a statement: “As lockdowns ease, analysts have predicted that e-commerce revenues are set to drop as consumers head back to the high street. But our research reveals that’s not the case. E-commerce will continue to accelerate, testing online retailers along the way. But the savviest of retailers will capitalise on this opportunity, riding the wave of accelerated e-commerce adoption in Europe and willingness to try emerging payment methods.
“The past 18 months have demonstrated the need for businesses to remain agile, adapting business models, implementing new payment methods and meeting new regulatory requirements. Checkout.com has been developed with performance and speed in mind. Our modular payments platform is ideal for retail merchants looking to integrate better payment solutions seamlessly.”