The commerce industry in Canada needs to undergo some big changes. One particularly worrisome trend has become rather apparent. Canadians have abandonment issues during the checkout process. This is mainly due to friction arising when making payments both online and in-store.
In this day and age of modern payments, convenience has become the new normal. Consumers never had so many different payment options prior to 2018. This affects both retail and online purchases alike. Despite this overwhelming amount of choice, Canadian consumers still suffer from friction during the checkout process more often than not. This leads to many potential purchases being abandoned first and foremost.
Canadians Want Innovative Payment Methods
Those are the findings of a new study by Payments Canada. They uncovered how 53% of Canadians abandon purchases due to payment friction issues. This is very problematic for retailers, as they lose out on a lot of revenue in the process. Solving this problem will not be all that straightforward. It appears Canada is still behind when it comes to embracing these new innovative payment methods. Once that issue is resolved, things will look very different.
Payments Canada CEO and president Gerry Gaetz adds:
“The high abandonment rates at check-out suggest there is a high cost of not integrating faster, more convenient payment technologies. Canadian consumers are speaking with their wallets, indicating that they will not buy from those businesses that don’t make the payment experience easy.”
Canadians show a keen interest in e-wallet applications. “invisible” Checkout procedures such as Amazon Goa re also gaining a lot of popularity. However, there are not common among Canadian retailers as of yet. Catering to these new users will need to be the number one priority for all service providers. A lot of changes will be coming to Canada, that much is evident.