New research from Lloyds Bank and FreedomPay highlights the importance of UK businesses investing in new payment technology.
Two-thirds (59%) of UK Retail, Food & Beverage (F&B) and Hospitality companies were found to already put payments at the heart of their customer experience strategy, reflecting the growing importance of payment options to customers.
For retail-focused businesses, 59% believe that a good checkout experience is essential to building customer loyalty, with respondents believing it is as much a competitive advantage as having the best products.
Meanwhile, 57% of retailers said that a poor payment experience could have a detrimental effect on their business, pushing customers to competitors who offer a better experience.
The findings come as payment infrastructure is increasingly viewed as a critical part of customers’ shopping experience. As high inflation takes its toll on both independent venues and enterprise chains, this research demonstrates the need for businesses to prioritise customer satisfaction and build brand loyalty.
Businesses understand that payments are a crucial part of the customer experience
However, despite understanding the importance of providing a good payment experience for customers, making this a reality appears to be a challenge for many businesses.
Half of all business surveyed (49%) said they had not invested in payment solution updates at all, and only 27% of respondents felt confident in their omnichannel payment experience offering.
This disparity highlights that businesses have a lot of room for growth, as investment in new payment technology could lead to significantly enhanced customer experiences and result in increased sales.
Data leads to better customer engagement
Other findings highlighted how businesses are using data, with many understanding that payments data can help them to make more informed decisions. 80% of respondents said they are using payments data to learn more about their customers to tailor services and products for them, which can be crucial to maintaining customer engagement and driving brand loyalty.
FreedomPay’s president Chris Kronenthal said: “What is evident from our research is that brands must focus on payments innovation now more than ever. Understanding what customers expect and want from a payment experience is fundamental to ensuring that customers keep coming back. Choosing the right payments partner can support strategic business decisions and streamline checkout to help to deliver a personalised, seamless, and data-driven experience any time, any place.”
Melinda Roylett, managing director, Lloyds Bank Merchant Services, said: “The way we pay has undergone rapid shifts in the past few years. Accelerated by the pandemic, technological advancements and innovative ways of using open banking have led to the increasing adoption of contactless, digital wallet solutions and embedded finance options such as Buy Now, Pay Later. Consumers now have more choice than ever. This means that businesses also need to think about how they use the payment experience at checkout to build business growth.”
