In today’s competitive marketplace, offering customers exciting products and services is needed to generate sales, but more is required to ensure steady profits. In that sense, payments form a critical step in profit generation and ensuring return on investment of capital. The data speaks for itself.
- Studies suggest online retailers in the U.K. alone lose as much as 2.13 billion euros ($2.34 billion) annually due to a lack of available payment options.
- According to a survey, nearly 67 percent of respondents find it frustrating when there is a lack of payment methods available.
- In addition, 20 percent of respondents abandon purchases due to the lack of a preferred payment method.
Moreover, as merchants, one must be aware that global payment fraud has tripled over the past decade. It has risen from $9.84 billion in 2011 to $32.39 billion in 2020 and is projected to cost $40.62 billion in 2027—25 percent higher than in 2020. This makes today’s shoppers concerned about the safety of their payments and payment information. Data estimates suggest that 72 percent of Americans worry about having their personal or financial information stolen, and 67 percent worry about being a victim of identity theft.
So, if you’re a merchant looking to boost eCommerce revenue and grow, overcoming customers’ payment reservations or any friction in the payment process is essential. To ensure a seamless payment process, tracking payment KPIs becomes vital to optimizing your payment performance. So let’s go over the essential metrics.