Payment Options Matter: Retailers Face A Persistent Challenge With Shopping Cart Abandonment

Payment Options Matter: Key insights

• More Payment Options, More Conversions: 70% of shoppers prioritize preferred payment methods, making it vital for reducing cart abandonment.

• Generational Differences in Shopping: Millennials average five cart abandonments in 30 days, while baby boomers abandon less often.

• Platform Preferences by Product: For electronics, 48% prefer online marketplaces, but 44% choose retailers' websites for groceries, showing varied shopping habits.

We’ve all experienced the struggle of finding the perfect jacket or a great deal online, only to realize that our favorite payment option isn’t available at that particular store. When you can’t pay with PayPal and have to get up to fetch your wallet for a credit card, many consumers are unwilling to do that because they prefer effortless shopping. PYMNTS and Adobe have considered this issue in a report and reached a pretty obvious conclusion, yet not all online retailers seem to be listening.

More Payment Options, More Conversions

Consumers care deeply about their payment options. The report reveals that 70% of shoppers find their preferred payment method very important when selecting an online store. This preference significantly impacts cart abandonment rates. Online marketplaces have an advantage in offering payment choices. According to the study, 53% of shoppers believe these platforms are best at providing preferred payment methods. Only 22% feel the same about brand websites.

This difference may contribute to higher abandonment rates on brand sites. On average, shoppers abandon eight carts from brand websites in 30 days, compared to six from retailers and seven from online marketplaces. Expanding payment options could help brand websites compete better with online marketplaces. By offering more payment methods, retailers can potentially lower their abandonment rates. Especially in Eastern Europe, it seems to be a problem; Bulgaria, Romania, and Croatia have the highest abandonment rates in Europe.

Generational Differences in Shopping Behavior

The report highlights how shopping habits differ across generations. Millennials are the most likely to abandon their carts, averaging five abandonments in 30 days. Gen Z follows closely with four abandonments. In contrast, baby boomers and seniors abandon their carts fewer than once a month. This trend suggests that older consumers are more likely to complete purchases, while younger shoppers may use their carts for wish lists or price comparisons. The generational gap is even more evident in certain product categories. For clothing and accessories, millennials and Gen Z abandon an average of two carts each in 30 days—five times more than older consumers.

Platform Preferences for Different Products

Consumers also have preferences for shopping platforms based on product types. For electronics, 48% prefer online marketplaces, while 37% favor them for home furnishings and appliances. However, for clothing and accessories, preferences are more balanced: 37% like online marketplaces, 36% prefer retailers' sites, and 24% choose brand websites. Interestingly, 44% of consumers prefer retailers' websites for groceries, showing a strong loyalty to established grocery chains.