E-commerce merchants in the U.S. are focusing on improving the checkout process as they look to enhance customer experience and increase sales. Businesses see streamlined payment methods as essential for reducing cart abandonment and maximizing revenue. Many merchants are seeking technological solutions that can help expedite transactions and reduce friction for buyers. Payment service providers (PSPs) are being urged to introduce tools that make it easier for customers to complete their purchases with minimal effort.
Efforts to improve the checkout experience have been ongoing, with previous initiatives focusing on fraud prevention, security enhancements, and alternative payment methods. However, recent trends indicate that merchants now prioritize seamless payment processing over other concerns. Unlike past strategies that emphasized fraud reduction, today’s merchants are more concerned with technologies that directly impact conversion rates. This shift highlights the increasing importance of usability and efficiency in online transactions.
Why Are Merchants Focused on Checkout Optimization?
U.S. merchants believe checkout technology plays a crucial role in determining whether a customer completes a purchase. According to recent findings, businesses are more concerned about improving checkout speed than addressing backend payment processing issues. Many retailers report that friction during payment leads to lost sales, making the user experience a critical factor in conversion rates.
A significant number of merchants have requested new technology features from their PSPs, with many specifically asking for a smoother and faster checkout process. However, some businesses remain unaware of the available options, suggesting that better communication from PSPs could drive further adoption of automation and new payment solutions.
Which Technologies Do Merchants Want?
The demand for one-click checkout solutions is particularly strong, with nearly half of surveyed merchants requesting this feature. Businesses view one-click options as a way to simplify purchases, reduce friction, and increase the likelihood of completed transactions. Other requested upgrades include secure card storage and biometric authentication, while newer technologies like network tokens remain less frequently adopted.
Many merchants also expect their PSPs to implement upgrades automatically, allowing them to stay competitive in a rapidly evolving digital marketplace. Despite this, a notable portion of businesses feel that their PSPs do not sufficiently enhance the checkout experience, indicating room for improvement in service offerings.
“Only 44% of merchants felt their PSP made checkout easy, and just 15% considered it the most important benefit,” the report stated.
The relationship between merchants and PSPs appears to be functional rather than strategic, with many businesses seeing their providers as service facilitators rather than active partners in improving sales performance. While PSPs offer various payment solutions, their impact on approval rates and false decline reductions remains a lower priority for many retailers.
As eCommerce continues to grow, simplifying the checkout experience remains a top priority for merchants looking to improve sales performance. Businesses recognize that reducing friction at the payment stage can lead to higher conversion rates, and many are actively seeking technology solutions to achieve that goal. While features like one-click checkout and biometric authentication are in demand, the adoption of newer technologies such as gateway tokens and network tokenization remains limited. PSPs that effectively communicate and implement solutions tailored to merchant needs may gain a competitive edge in this evolving landscape.
