Survey: Nearly 50% of cart abandonment tied to security concerns

Concerns about security are causing a surge in online cart abandonment.

That’s according to a study by e-commerce solutions provider Radial, which found that the two primary culprits behind the surge in online cart abandonment are the security of the website being shopped on (48%) and concerns about the use and security of personally identifiable information (PII) (45%).

The study also found that one in three consumers have fallen victim to fraudulent activity in the past six months, wherein their credit card or financial information was obtained and misused without their consent.

The top three security measures consumers value the most, according to the study, are a strong password for online transactions (50%), two-factor authentication (2FA) (32%), and verified by Visa/Mastercard SecureCode (37%).

In other findings, the number of payment options provided have a great impact on customer loyalty and online shopping experiences, according to Radial. Fifty-eight percent of consumers consider the availability of multiple payment methods as an essential factor when selecting an e-commerce brand. 

To meet the needs of consumers, Radial suggested that brands prioritize offering a range of payment options, including Apple Pay, credit cards, Buy Now Pay Later (BNPL), and PayPal.

Other highlights from the study are below.

•With the digital payments landscape reaching saturation, prioritizing consumers’ preferred digital wallets is essential.  Survey results show PayPal as the most trusted and widely used digital wallet among 57% of respondents, followed by Venmo at 33%. 

 “Embracing these popular options helps brands thrive in a highly competitive market,” the study said.

•Online shoppers confront various risks and challenges, including phishing scams (40%), unauthorized credit card charges (41%), and encountering fake online retailers or websites (40%).

•While protecting the bottom line against fraudulent orders is vital, being overly cautious and declining all suspicious orders can also alienate customers. Twenty-four percent of consumers noted they would stop shopping from a brand if their online order was canceled due to suspected fraud

“Our study leaves no room for doubt – the eCommerce industry’s success hinges on prioritizing secure payment and fraud solutions,” said Yvan Gilliard, senior VP of payment solutions & omnichannel at Radial. “The findings reveal that security concerns drive cart abandonment and directly impact customer loyalty. Brands must take away a crucial lesson: Embracing robust measures to safeguard transactions will inspire unwavering trust and elevate them to new heights of success in today's hyper-competitive landscape.”

Radial conducted the survey with Dynata in June 2023, targeting 1,000 general U.S.-based consumers over 18 years of age.