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Tag: WorldPay

  • Worldpay research uncovers an elite club of shopaholics in APAC with enormous spending power

    Worldpay research uncovers an elite club of shopaholics in APAC with enormous spending power

    A global survey of 20,000 consumers by Worldpay has discovered that buying power in the internet age is highly concentrated within a group of high spending, high frequency Super-Shoppers. In China, Super-Shoppers make up just 5% of the general population yet accounted for an incredible 92% of all the money spent buying physical goods online in China each month. Worldpay’s research into three Asia Pacific markets further reveals that APAC Super-Shoppers are some of the most likely to shop online via a mobile device and some of the most demanding when it comes to payment method.

    Worldpay polled 2,000 consumers in each of the 10 countries covered by the Why Do They Pay That Way? Study including China, Japan and Australia. Key findings include:

    1. Chinese Super-Shoppers are more likely to use a credit or debit card than the average Chinese shopper.
    2. More than 60% of Japan’s online shoppers will switch to another retailer if they can’t use their preferred payment option at checkout.
    3. Australian Super-Shoppers were the world’s second biggest buyers, spending on average more than £200 (US$260[1]) during their last online transaction.
    4. The Chinese are the biggest mobile shoppers in the world, with 33% of Super-Shoppers making their last online purchase via a mobile phone.
    5. Australian Super-Shoppers had the second highest levels of mobile shopping (19%).

    Phil Pomford, General Manager Asia Pacific, Global eCommerce at Worldpay, said: “With ecommerce markets developing at lightning speed across the Asia Pacific region, it’s no surprise that elite shoppers are taking their spending power online. The Super-Shopper trend is driven by a growing middle class, high mobile penetration and recent advancements in consumer technology. APAC Super-Shoppers are passionate about what they buy and sophisticated in how they shop. They do research to find the most competitive prices, and will turn elsewhere if they discover they can’t use their preferred payment method at checkout.”

    Around the world, 36% of Super-Shoppers said they had experienced the situation of reaching checkout and being unable to pay with any of the listed payment options. This was particularly the case in China, where 44% of Super-Shoppers said they were unable to make purchases using their preferred payment method.

    When faced with not being able to use their preferred payment option, Super-Shoppers may buy the same item from another website or abandon their purchase all together. A staggering 61% of Japanese Super-Shoppers said they would switch to another retailer if unable to use their preferred payment option at checkout. Worldpay estimates that for each lost sale globally, retailers are missing out on as much as £100 (US$130) – representing a significant amount of lost revenue from such frequent and high value shoppers.

    Super-Shoppers in APAC, as around the globe, overwhelmingly preferred credit cards, even in markets where card use is low. Although 41% of the general population in China prefer to pay online with Alipay, only 18% of China’s Super-Shoppers said they were likely to use their nation’s most popular eWallet. Instead, 54% of Chinese Super-Shoppers said they preferred to pay with a credit card.

    Pomford added: “Retailers should be looking at Super-Shoppers as a distinct group that often behaves very differently from other customers. In APAC, Super-Shoppers prefer credit cards even where these cards have little or no traction among the general population. Therefore, a retailer who doesn’t support the right range of payment methods could actually be losing major revenue without noticing.

    “The Super-Shopper phenomenon gives retailers much food for thought – in terms of not only what payment options are available, but in how to merchandise to these consumers to maximise basket size, or market to an audience who thinks of online shopping as a daily task, not just as an occasional treat. With so much buying power concentrated in this group in APAC and around the world, it’s essential that retailers innovate in such a way that they deliver what Super-Shoppers want, when they want it and let them pay for it in the way that suits them best.”

    APAC Super-Shoppers’ most frequent purchases vary from country to country. According to the Worldpay research:

    1. One in 5 (21%) Australian Super-Shoppers buy groceries online – 8% above the global average.
    2. 2. Australian Super-Shoppers are less likely to buy clothes online (21%) than the global average (28%) yet more likely to buy health and beauty products (15% vs global average of 10%).
    3. China leads the world in online meal purchases, with 13% of Chinese Super-Shoppers taking to the internet when they want to order a takeaway.
    4. Super-Shoppers in China also love fashion, with 40% of them buying clothes the last time they shopped online, compared to the global average of 28%.
    5. In Japan, Super-Shoppers are most likely to buy electronics (30%) and groceries (28%).
  • Worldpay expanding to Australia

    Worldpay expanding to Australia

    The company’s expansion in Australia comes at a time of sustained growth for Worldpay, which processed 13.1 billion transactions in 2015 with transaction value of £401.9 billion ($518.9 billion).

    A number of global companies, including ASOS, Expedia, Cathay Pacific Airlines, Digital World International and Freelancer already use Worldpay for payment processing in Australia, due primarily to the company’s international reach, as well as its ability to process a wide range of alternative payment methods such as eWallets and bank transfers.

    Australian e-commerce accounted for an estimated $42 billion of the country’s GDP in 2015, and the country’s consumers lead the world in terms of eWallet adoption, which is favoured by 21% of shoppers buying goods online.

    Shane Happach, Managing Director, Global eCommerce at Worldpay concluded: “We are delighted to extend our services into Australia, which is a tremendously exciting market with lots of growth opportunity,” Worldpay managing director for global e-commerce Shane Hapach said.

    “We have quickly found merchants trading in Australia are hungry for a payment solution that can help them drive up conversion rates and drive down the costs of running an online business across multiple markets.”

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  • Online security ‘paramount’ for shoppers

    Online security ‘paramount’ for shoppers

    A sense of security is paramount for nearly one quarter of shoppers when evaluating whether to purchase goods from a retailer online, according to a new survey from Worldpay, a payments provider.

    Assuring customers they are in safe hands throughout the entire payment experience should be a priority for retailers, according to 3500 online shoppers polled globally.

    Similarly, for one in four online shoppers, seeing payment authentication and digital certificate logos displayed prominently on a retail site’s homepage is the single most reassuring element in the purchasing process. Forty-six per cent of consumers globally admit this would help address their concerns.

    Transparency around online security is particularly important in China, where 70 per cent of shoppers said they feel more secure shopping when payment authentication and certificate logos are clearly displayed, indicating that this simple measure will go a long way in addressing the misgivings of online customers.

    Shoppers also want security transparency when retailers store personal and payment details. Thirty-one per cent of shoppers worldwide say they don’t want a retail website to store their payment details, and South Koreans and Australians are most averse to the idea with over 50 per cent saying they don’t want this information stored online. In China and Japan, 65 per cent of shoppers expect reassurance that their details will be kept safe by the retailer and want a clear explanation of how this will be done.

    Stuart Thornton, VP of business development in APAC with Worldpay, said: “Nagging doubts about the security of their payment details can add up over the multiple stages of the purchasing journey for shoppers and stop them from ever clicking ‘buy’, even if they really want a product. When selling online, retailers need to step in and reassure customers that their information is in safe hands, from the second they start browsing a site to the moment they receive an email confirming their purchase”.

    At checkout, shoppers expect the ability to use their preferred payment method and want the process to be simple and intuitive. Sixty-five per cent globally have abandoned their purchase at the checkout stage as a result of not being able to pay how they wish.

    Nearly 60 per cent of shoppers worldwide would drop out of a purchase if their preferred payment method was displayed on a retail site’s homepage but wasn’t available at checkout. Forty per cent of shoppers globally admit they would not take the time to look for their preferred payment method at checkout if it was not easy to find. This figure is even higher in Japan, where 62 per cent of shoppers say they wouldn’t search for their preferred payment method if it wasn’t already clearly indicated on the website.

    Retailers must also manage consumer expectations by clearly indicating what they can expect at each stage of the payments journey, particularly when redirecting them to a third-party website. Ninety-four per cent of shoppers globally say this is important, and one-fifth would instantly drop a transaction if ushered to a third-party site without warning. In Japan, nearly 30 per cent of shoppers would drop out if unexpectedly redirected to a third-party site to enter additional details.

    “Purchasing products online demands a certain level of trust between retailers and shoppers, and making the process simple and transparent is absolutely essential,” said Thornton.

    “Retailers will struggle to inspire confidence in their customers if they cannot deliver on shoppers’ expectations and give them peace of mind throughout the online shopping journey”.

    The need for retailers to act as a source of reassurance for shoppers is equally strong when it comes to handling errors or providing customer support. Nearly two-thirds of online shoppers (64 per cent) want a clear and immediate explanation of exactly what went wrong. When it comes to additional support, 27 per cent want to be able to call customer support, while 24 per cent want the option to email a support representative.

    Clear error messages also head off any potential confusion as to whether a transaction has been processed. Ninety-six per cent of shoppers say it is important they receive an email confirming that their order has been processed and their payment accepted.

    Adds Thornton: “If there is one thing to take away from these findings it is that the online payments journey is inextricably linked to the user experience. If retailers cannot reassure customers that their transaction will be quick, secure, and managed to the highest standard of professionalism throughout the payment journey they will struggle to keep shoppers engaged”.

    The research was carried out in partnership with KAE Marketing Intelligence, which conducted a desktop analysis of 350 top retail sites and surveyed 3500 online shoppers in 14 countries across North America, South America, EMEA, and APAC.