Australian consumers want to feel secure with familiar brands while paying online and are less likely to use digital currencies and crypto than other countries, according to payments leader Worldpay.
Insights about consumer trends and solutions are contained in the Payments Performance Report, which stresses the importance for merchants to consider convenience, security and payment options as part of their payments strategy.
Worldpay’s Australia and New Zealand Commercial Vice President, Paul Koopmans said Australian consumers used payments differently and with greater caution compared to many of their global counterparts, particularly when shopping online.
Importantly for businesses, while globally consumers agree they are more likely to complete their purchases if they can do so in their preferred currency (96%) and payment method (95%), nearly a quarter of Australians won’t buy anything at all when their preferred payment method is not available, resulting in lost sales and revenue opportunity.
When shopping online, digital wallets are on the rise, and debit cards and Buy Now Pay Later are more popular in Australia than other parts of the world. While half of global consumers are open to using crypto and digital currencies, only 35% of Australians are willing to try them out.
However, Aussies currently use account to account payments and digital wallets less than many other countries, but mobile wallets are expected to soar over the next three years.
“In Australia especially, it is vital that businesses offer their customers a variety of purchase options to ensure that they don’t miss out on potential revenue,” Koopmans said. “Customers want to feel comfortable when purchasing online and retailers offer their favourite options. They are becoming more discerning in their payment choices and expectations on security.”
“Consumers expect a safe and seamless payments experience. In Australia that often means feeling more secure purchasing online when they see recognisable security features and brands, 77% versus 61% globally.”
“As we look to the future, digital payments are set to undergo significant transformations, propelled by emerging technologies and shifting consumer preferences. Merchants that keep up with their customers preferences will maximise their revenue opportunity.”
Worldpay provides payments solutions to more than a million merchants globally in 146 countries, including Australia.
The data also shows that Australians also prefer to purchase direct from retailers (instore, in app or online), with only 12% of consumers wanting to buy via an online marketplace.
Mr Koopmans said robust fraud protection also provided peace of mind for consumers, and helped boost payment authorisation rates and reduce chargebacks and false declines.
Consumers say the main reason for chargebacks in Australia are incorrect charges (26%), the customer didn’t recall making the transaction (24%) and never received goods or services (23%).
“Regardless of how great your offering is, if the payment experience is inconsistent, flawed, or frustrating, plenty of competitors will capitalise on these missed opportunities. Every abandoned transaction, failed payment, security issue, or other friction in the customer journey can result in increased churn rates, lost customers, and missed revenue opportunity.”