It's in the details that e-commerce companies can get ahead of their competitors, building customer loyalty and increasing revenue. One of the ways to do this is to take good care of the payment flow during the purchase. Optimizing the customer experience after they have entered the payment phase is a small adjustment, but it makes all the difference. The potential for additional gains reaches up to 20%.
SearchRecent data from Nuvei showed that, overall, optimizing the payment process can generate up to 30% higher revenue in e-commerce, and this includes improving the consumer's experience while they are paying for their purchase. The report found that 70% of shopping cart abandonment occurs after the customer enters the checkout process. This suggests great opportunities for adjustments also at this stage. In other words, offering good products and services on a user-friendly website is not enough: it is also necessary to consider the smoothness of the experience during the payment process.
To improve transaction performance and increase conversion rates, businesses should look to optimize three things: removing friction from the payment process, offering relevant payment and financing options, and minimizing transaction errors.
Low-friction payments are key
Another finding from the Nuvei report was that 42% of dropouts occurred when the e-commerce system prompts the customer to enter personal data and payment information. One way to overcome this difficulty is the implementation of an autocomplete feature through browser plugins and digital wallets, along with express payment solutions such as Apple Pay or Shop Pay. This initiative reduces the burden on the customer, making the experience more satisfying.
Additionally, allowing consumers to complete purchases in guest mode can help capture more sales, as those who are not comfortable creating an account will be more likely to proceed with payment.
It is worth noting that these approaches reduce the number of steps buyers must go through to complete a product or service purchase, maintaining their high purchase intention until the transaction is completed. Industry research suggests that removing friction from the checkout process can lead to a 35% increase in conversions. This data indicates the direct impact of simplified payment experiences on revenue acceleration.
Sufficient payment and financing options
Although offering multiple payment options is advantageous and tends to reduce cart abandonment rates, Nuvei's report conclusions suggest the need for a strategic approach. This is because an excess of options can lead to decision fatigue, increasing the perceived complexity of the transaction process for the customer.
Therefore, it is crucial to select, test, and prioritize payment methods that align with the preferences and habits of the target audience, as well as to adapt the payment mix depending on the market. Another important point is the integration of flexible financing solutions, such as installment plans or "buy now, pay later" (BNPL) options, which democratize high-value purchases and further stimulate conversions.
Fast and accurate transaction processing
In Nuvei's survey, nearly a quarter of brands reported that their customers permanently abandon carts after declined payments or error messages. Another 31% cited slow transactions as one of the most common negative feedback they received. Today, the main market references indicate that consumers expect to complete a payment transaction in e-commerce in less than two minutes, while having low tolerance for declined payments — 42% of consumers abandon the process after experiencing a payment error.
Thus, to align with these customer standards and behaviors, e-commerce brands need to ensure that their payment infrastructures are not only fast: they must also be scalable and accurate, error-free. In this sense, payment methods technology is a great ally, with tools such as cascading mechanisms, account updater, and robust redundancy of acquirers in target markets, especially during peak seasons. Enhancing the system architecture to support faster processing times and more reliable transactions can significantly reduce delivery rates and improve the payment experience. And a customer with a good experience tends to make the purchase and, more importantly, to return to buy again.
