Study Finds E-Commerce Cart Abandonment is Often About Perceptions of Digital Security

We’ve all done it; you know, abandoned your cart after shopping for a while online. Abandoned carts are a significant source of lost revenue for companies that engage in e-commerce. The way to reduce abandoned carts, then, is to understand a simple question: Why are customers leaving them in the first place?

A new study commissioned by e-commerce solutions provider Radial, Inc. found that security issues loom large in the minds of shoppers. This underlines the urgent need for brands to prioritize secure payment processes and experiences. The research underpinning the study examined consumers' experiences, preferences and concerns regarding payments and fraud prevention within the online shopping experience.

Overall, the study found that the two primary culprits behind cart abandonment are the security of the website being shopped on (48%) and concerns about the use and security of personally identifiable information, or PII (45%). As economic uncertainty pervades, consumers place a premium on secure online payments. The survey reveals the top three security measures consumers value the most: a strong password for online transactions (50%), two-factor authentication (32%) and verified by Visa/Mastercard SecureCode (37%).

The research also revealed that the number of payment options provided have a great impact on customer loyalty and online shopping experiences. The majority of consumers (58%) consider the availability of multiple payment methods as an essential factor when choosing to buy from a company via e-commerce. To meet the preferences and needs of consumers, especially in times of economic uncertainty, it is suggested that brands prioritize offering a range of payment options such as Apple Pay, credit cards, Buy Now Pay Later (BNPL), and PayPal.

Radial noted that the study leaves no room for doubt: e-commerce success hinges on prioritizing secure payment and fraud solutions.

“The findings reveal that security concerns drive cart abandonment and directly impact customer loyalty,” said Yvan Gilliard, Senior Vice President of Payment Solutions & Omnichannel at Radial. “Brands must take away a crucial lesson: Embracing robust measures to safeguard transactions will inspire unwavering trust and elevate them to new heights of success in today's hyper-competitive landscape.”