Digital Wallets Gain Favor Among Online Shoppers

Today’s online shopping experience can make or break a consumer’s decision to complete a purchase. Recent findings from the Paze Pulse report revealed that a significant 71% of online shoppers abandoned their shopping carts within the past year. Among the top reasons for cart abandonment were concerns over the complexity of the checkout process, in addition to security concerns. However, amid these challenges, there is a strong demand for digital payment tools that streamline and expedite the checkout process.

Appetite for Digital Wallets

Consumers exhibit a strong preference for digital wallets, particularly those offered by financial institutions. In fact, nearly half of shoppers surveyed said they prefer bank-backed digital wallets over guest checkout options. The main reason is that they consider banks to be more secure compared to third-party providers, citing the perceived security advantages of banks over third-party providers. Over 80% of respondents affirmed their trust in their bank’s safety and security compared to alternative payment options. Security and convenience are certainly top-of-mind for consumers when selecting their preferred payment method. Many respondents highlighted the ease of use offered by digital wallets to address this hurdle, as a significant number of shoppers expressed willingness to use digital payment tools if they were preconfigured. Simplifying the setup process could encourage more consumers to embrace digital wallets over traditional guest checkout options.

Ongoing Hurdles Remain

Although advancements in digital wallet technology have been made over the years, some hurdles remain, such as setup complexity. Paze Pulse suggests that this is an opportunity for preloaded digital wallets, as many shoppers express a willingness to use digital payment tools if they were pre-set up. Indeed, nearly half of shoppers said they would use a digital payment tool if it was set up already, but they would revert to guest checkout because it seems easier. Overall, it comes down to variety. Online shoppers polled noted that they use an array of digital payment tools for their online purchases. With 91% of consumers frequently using digital payments for checkout, business can enhance the online shopping experience by offering multiple payment options and prioritizing ease of use and security.