The Cost of Not Offering Preferred Payment Methods

The Hidden Cost of Limited Payment Options

Online businesses are struggling with a costly but fixable issue: cart abandonment. A new report from PYMNTS Intelligence shows that 70% of consumers consider payment method availability as a top factor when deciding where to shop online. For many businesses, failing to meet this expectation is directly tied to lost conversions.

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Preferred Payment Methods Drive Store Choice

The data is clear. When consumers don’t see their preferred payment method at checkout, they often leave. Seven out of ten shoppers say this single factor is “very or extremely influential” in deciding where to buy. Online marketplaces are viewed most favourably, with 53% of consumers saying these platforms consistently offer their preferred options. Only 22% say the same for brands’ own websites.

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Brands See Higher Cart Abandonment Rates

Because brands’ sites are less likely to support a wide range of payment methods, they see more cart abandonment. The report found that consumers abandoned their carts on brands’ websites an average of eight times in the past 30 days—20% more than on retailers’ sites and more than on marketplaces.

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Younger Shoppers Are More Likely to Abandon Carts

Millennials and Gen Z are the biggest contributors to this trend. Millennials abandoned an average of five carts in the last month, while Gen Z averaged four. Baby boomers and seniors, by contrast, averaged less than one. This suggests that younger shoppers are more likely to browse, compare, and hold off on purchases if the checkout experience isn’t seamless.

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The Role of Payment in Category-Specific Shopping

Certain product categories are more prone to abandonment. Clothing and accessories saw the highest rates, especially among younger consumers. When payment isn’t fast and frictionless, these shoppers move on. Marketplaces remain a preferred option for electronics, while grocery shoppers still lean toward retailers’ websites.

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A Better Checkout Experience Starts With Payment Flexibility

Ultimately, improving checkout experiences starts with offering more of what customers already want. Businesses that streamline the payment process and support preferred methods are more likely to reduce abandonment and boost conversions. For brands, this may mean reevaluating their payment infrastructure and adopting technology that supports a wider range of digital-first options.

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Payment Solutions with Kubera Payments

At Kubera Payments, we help businesses across North America move millions of dollars daily, whether in-store, online, or on mobile. Our team of payment experts is here to guide you through the complexities of payment processing, ensuring your transactions are secure, reliable, and PCI-compliant. We have strong relationships with a wide network of acquirers and can help you find the right front-end and technology solutions to work together.

Get expert advice on optimizing your payments.

Contact our team at sales@kuberapayments.com or 604-484-9278

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