Focus on Payment Innovation Urged for UK Businesses as Nearly Half Fail to Invest in New Solutions

In a time when high inflation is impacting businesses of all sizes, both independent and chain stores are looking for ways to enhance the customer shopping experience. New research from a partnership between Lloyds Bank and FreedomPay, a payment platform provider, underscores the potential benefits of embracing innovative payment solutions for UK businesses.

According to the study, over half (59%) of retail, food, beverage, and hospitality companies in the UK are prioritizing payments as a key aspect of their customer experience strategy. This reflects the increasing recognition of the importance of offering a variety of payment options to customers. Furthermore, a majority of businesses in the retail sector believe that a smooth checkout process is crucial in building customer loyalty, often being seen as a competitive edge alongside the quality of products.

On the flip side, a poor payment experience can be detrimental, with 57% of retailers acknowledging that it could drive customers to competitors who offer better payment solutions. Melinda Roylett, managing director of merchant services at Lloyds Bank, emphasized the importance of enhancing the checkout experience to keep up with the evolving payment landscape. She highlighted the rapid adoption of contactless, digital wallets, and buy now, pay later options by consumers, which necessitates businesses to rethink their approach to payments to stimulate growth.

Despite the acknowledgment of the significance of a seamless payment experience, many businesses are struggling to implement necessary changes. Nearly half of the surveyed companies have not invested in updating their payment solutions, with only 27% feeling confident in their omnichannel payment offerings. This gap presents an opportunity for growth, as investing in new payment technologies can lead to improved customer experiences and increased sales.

Moreover, the research revealed that businesses are leveraging payment data to gain insights into customer behavior and preferences. By utilizing this data, 80% of respondents are customizing their services and products to better meet customer needs, which is crucial for fostering engagement and driving brand loyalty. Chris Kronenthal, president of FreedomPay, emphasized the importance of payment innovation in meeting customer expectations and ensuring repeat business. He stressed the significance of selecting the right payment partner to support strategic decisions and streamline the checkout process for a personalized, seamless, and data-driven experience anywhere, anytime.

Overall, the study underscores the growing importance of payment innovation for businesses looking to enhance customer satisfaction and drive brand loyalty in a competitive market landscape.