'The Uber of retail': Checkoutless payments still untapped by UK retailers

UK fashion retailers need to be doing more to make mobile payments as frictionless as possible, according to research from e-commerce specialist Gene, which says that checkoutless commerce is the “Uber of retail”.

Gene’s research found that 80 percent of the UK’s top 25 fashion brands don’t offer mobile shoppers the option to transact before the conventional checkout stage, meaning they have to enter personal and bank details each time they make a purchase.

Gene examined take-up and placement of the four most popular digital wallets - PayPal, Amazon Pay, Apple Pay and Google Pay - all of which make the payment process seamless by removing the need to enter details during each transaction. Through these platforms, time to make a transaction is reduced and the average number of touches it takes to make a transaction reduces from eighty to just two.

UK retailers not making the most of checkoutless mobile payments

Just five of the 25 UK retailers provided checkoutless payment methods, with Amazon Pay and Apple Pay topping the list of most popular methods - both offered by two retailers. PayPal Express and Google Pay were supported ahead of the checkout stage by one retailer each.

According to IMRG, 71 percent of traffic to e-commerce websites in the UK is from a mobile device. Gene thinks that retailers need to be doing more to keep up. “We are experiencing a monumental shift in the way consumers shop, and checkoutless commerce is an integral part of this,” said Matt Parkinson, MD at Gene in a statement.

Traditional payment methods will become redundant in the future

“Despite the growth in mobile traffic, conversion and revenue aren’t keeping pace which is a major challenge for retailers,” Parkinson continued. “Many are out of step with customer expectations by not using the latest technologies to make the shopping experience more convenient on mobile devices. Customers are working harder when retailers can reduce checkout to just a few touches.”

The study also examined the number of digital wallets offered by retailers at any stage of the payment process, with the majority of retailers (60 percent) providing one option, while 24 percent of retailers have none.

“Checkoutless commerce is the Uber of retail - the industry can be transformed by embracing technology that makes life more convenient for customers,” Parkinson added. “Take-up is low considering fashion and footwear tend to target mobile-native younger shoppers and our research reveals that this payment trend is yet to become mainstream.”

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