DESIGNING OUT CRIME
Christmas mobile misery?
UK retailers are set to enjoy the most successful mobile Christmas to date, but they will miss out on nearly £2.5bn in sales due to outdated mobile check-out experiences, according to scan and validation company Jumio.
Almost 50% of shoppers abandon purchases on mobile devices because check-out friction causes consumers to drop out of the transaction.
Furthermore, the majority of shoppers (57%) do not re-attempt the transaction on a desktop computer. This means up to £2.5 billion in the form of lost sales stands to be left on the table by UK retailers this peak Christmas trading season.
“We know that consumers abandon mobile shopping for a variety of reasons, from slow network speeds to high shipping costs, but the most significant among them is entirely under a retailer’s control – simplifying check-out processes,” said Marc Barach, Chief Marketing Officer, Jumio.
“While mobile apps have transformed the ecommerce shopping experience, checkout processes have not kept pace with mobile technology. Retailers need to seamlessly usher shoppers through the check-out experience to stem the tide of abandonment and billions lost in potential sales, both during Christmas peak trading and throughout the year.”
In addition to revenue lost due to payment friction at the time of check-out, retailers risk losing money on future purchases as well. 63% of consumers are less likely to buy from the same company via other purchase channels after abandoning a mobile transaction due to a poor experience, according to the recent Harris poll. Nearly half of all consumers surveyed (47%) said they failed to complete a purchase because the check-out process took too long. Other reasons shoppers fail to complete a mobile transaction include:
▪ 41% said the check-out process was too difficult on their device
▪ 23% said they failed to complete their purchase because it would not go through
Jumio has introduced BAM Checkout, a comprehensive mobile check-out offering to increase transactions while reducing fraud by enabling users to bypass nearly all manual key entry when completing a mobile purchase. With BAM Checkout, users looking to transact on mobile simply tap the “scan info” button embedded into the check-out page and successively hold their payment card and driving licence up to their smartphone camera.
Where the usual check-out process usually takes the customer 100 key entries, Jumio’s new scanning technology means the process is completed with virtually no key entries. The extracted data auto-populates the existing check-out fields with all of the user’s required information within seconds – manually this process can take up to two minutes. To ensure security, no photos of credentials are taken or stored on the smartphone.
