“Offering a trusted payment provider like PayPal is critical to the growth and success of online grocers and food delivery websites, as it enables these businesses to appeal to new consumers,” says the company. And, by 2021, 82% of Europeans were ordering their groceries online, while 62% had ordered food delivery either online or with a mobile app 2. In its European study, PayPal points to the success of grocery webstores in Europe, revealing that they had the highest traffic growth and mobile penetration of all retail categories in 2020 12. PayPal has 32 million active accounts in the UK, and is trusted by shoppers who buy, sell, and send money – without sharing their full financial information.” PayPal UK managing director Vincent Belloc adds: “E-commerce has always been about giving consumers a convenient way to buy what they want, when they want and being able to pay for it how they want. With Co-op now offering an online service through more than 2000 stores across the UK, the retailer’s head of payments, Paul Fletcher, says: “As a convenience retailer, the ability to come into our stores will always be important to our Members and customers, but we also know that they want flexible options online – ease, speed and convenience is at the heart of our approach, whether in-store or online, and our work with PayPal will now offer additional online payment options which are simple, safe, secure and trusted by millions of UK shoppers 11.” Frictionless online payments should be bread and butterĬo-op is a major grocery retailer that offers PayPal as one of its payment methods to help shoppers make safe and secure grocery purchases through its online shop.įrom February this year, PayPal is now a payment option for shoppers purchasing home delivery orders and click & collect on .uk. In fact, 47% of UK consumers are less likely to make a purchase if they have security or trust issues at the checkout 8. While retailers have many elements to consider – including mobile optimisation, up-to-date inventory and an easy and efficient checkout process – if the customer doesn’t feel safe making a transaction, the rest becomes immaterial. Over and above the time it takes for shoppers to conclude a transaction, many are still wary about the security of online payments and are reluctant to give their debit or credit card details, prompting them to use e-wallets to complete the transaction. Iceland Foods group chief customer and digital officer David Delaney confirmed that, for any retailer, “payment is the ultimate challenge and the most fragile part of the retailer journey”. Mobile payments are now mainstream, with 66% of Britons preferring to shop and pay online via their mobile device 7 – one of the highest percentages in Europe. Moreover, 43% of UK consumers have stated that businesses offering their preferred payment types would make them more likely to purchase online 7. It’s generally acknowledged that frictionless online shopping and payment experiences can help retailers attract more customers and improve their brand perception. Research has found that 39% of UK consumers are less likely to shop with a retailer that offers a long and confusing checkout 6. The report also reveals that “80% of UK consumers say they would do more food shopping online if the experience were improved, and 28% plan to mostly shop online within the next two years”, with home delivery cited as the preferred channel (23%) over pick-up in-store (6.6%) 4.Īlthough online food and grocery sales have slowed since the lockdowns eased last year, total sales are still expected to keep on growing, with Statista estimating they will reach £29.3bn by 2025 5. Awareness of the timesaving, convenience and ease of online transactions are now firmly bedded in, with consumers continuing to invest in delivery and click & collect to the point where what was once an occasional online order is now part of the weekly routine.Ī report published last year suggested that more than half (60%) of UK consumers now buy at least some of their groceries online, with almost 20% now ordering all or most of their groceries via the internet 4. Lumina Intelligence: UK Food & Drink ReportsĪre UK retailers prepared for this shift? Since the easing of lockdowns, online grocery shopping behaviours adopted during the Covid-19 years – although not developing as rapidly – have remained popular.
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