PAYMENTS
Nooriala continues : “ Fintech start ups have capitalised on this ‘ boom ’ and investors , too , have found it a lucrative opportunity , so the pace of growth has been relentless . Unfortunately , so far , the unregulated nature of BNPL has not only encouraged companies into the space , but also fraudsters as well .”
Ecommerce cart abandonment at the POS It ’ s easy to see how this situation has come about . As shopping methods increasingly moved online , competition has soared . Even just a decade ago , shoppers were searching online for specific goods from specific providers . They were purposeful and decisive in their actions , because the online shopping environment offered highstreet alternatives rather than the actual high street .
Today , increased cart abandonment is endemic , with some reports showing that as the cost-of-living crisis has soared , so has the volume of customers clicking away from their virtual shopping baskets before hitting the checkout . advantage of the easy-to-obtain , zerointerest credit agreements have not only encouraged irresponsible spending but also an uptick in fraud .
“ Current economic headwinds and the pandemic placed real burdens on the finances of many , but appetites for convenience and consumer goods haven ’ t waned ,” he explains . “ This has led to younger consumers wanting to buy now and pay later for goods – an attractive option when it comes to financing purchases at times of economic hardship . BNPL has emerged as one of the most popular online payment methods , due in part to the ease of use for consumers .”
Online retailers are facing an upward battle to remain profitable because of this . Put into perspective , recent data from the Baymard Institute – which collated information from 41 different studies on the issue of cart abandonment – shows that in late 2022 , the problem had hit a 70 % average across the ecommerce marketplace .
That means 70 % of customers , on average , walk away from their intended purchases at the point of payment . And this is after the added incentive of BNPL has been offered .
Promoting good business and good lending practices The battle facing BNPL providers now is to reach that middle ground that provides