Skrill, this is how consumers' payment preferences in Italy change

Skrill, this is how consumers' payment preferences in Italy change
By now we know, Covid-19 has forced many people to significantly change the way they live, work and communicate, inevitably influencing the ways in which they pay for goods and services. The same crisis has accelerated the integration by companies of new payment methods into the checkout, as evidenced by the new research “Lost in Transaction” by Skrill, part of the Paysafe group, a leading platform in the payment sector.

According to the report, 70% of online businesses in Italy say consumers try to make payments using more and more methods where their financial data is not shared and 68% say Covid-19 has brought more consumers to feel comfortable with payment methods they did not use before. For this reason, 76% of the Italian companies interviewed are introducing new payment methods.

Currently, even globally, card payments remain the most used method, but also digital wallets and bank transfers direct systems are increasingly widespread. The popularity of digital wallets is already high in Italy (56%) behind only credit cards (67%) and direct bank transfer (57%). An additional 13% of businesses plan to add digital wallets as a payment method as early as the next two years.

Globally, three-quarters of businesses have seen a shift in consumer behavior when it comes to which methods payments are used in their online shopping cart, while in Italy, this percentage reaches 81% of the companies interviewed. The most appreciated change is an increase in the percentage of payments made through digital wallets, a trend confirmed also in our country where the increase in the use of digital wallets was highlighted by 41% of Italian companies.

Only 12% of Italian companies said they noticed a decrease in payments with digital wallets.

Still, online businesses have already made considerable efforts to improve the satisfaction of the new systems of payment during Covid-19 and, mainly, the impact was positive. This has also affected companies' relationships with their payment service provider, although more can be done in this area.

When asked why consumer spending methods have changed, the answer is more recurrent - highlighted by 46% of national companies - has been that people are using the new payment systems to track their expenses more accurately. 32% of Italian companies said they started at least one new partnership with a digital wallet provider during Covid-19, and 25% of companies integrated more than one new payment method into their digital checkout. 63% of companies that evolved checkout during Covid-19 said these changes have already had a very positive impact on sales.

Globally, there is still a dichotomy between how Covid -19 is affecting online activities right now and how companies believe Covid-19 will impact them in the long term. Most companies say their turnover has increased, but overall the outlook appears to be gloomy. Lorenzo Pellegrino, CEO of Skrill, said: "The move to online made it necessary for retailers to rethink the payment experience for the consumer. Now that customers are more willing to use different payment methods, we have the opportunity to innovate the checkout phase. Creating a seamless digital experience will help e-commerce services attract all generations and give companies a fundamental competitive advantage. "

The Skrill research has shown greater awareness and distrust on the part of businesses and their consumers against fraud compared to before Covid-19. 53% of Italian companies say that the increase in fraudulent transactions was one of their biggest concerns during Covid-19 and 55% say it is difficult to find a balance between improving security processes and the need to make the customer experience online as quick and easy as possible.

64% say Covid-19 has caused consumers to be more concerned about being victims of fraud, and 70% (vs. 60% globally) believes that consumers are increasingly seeking to make payments online using methods where their financial details are not shared. In March of this year, following the start of Covid-19, Skrill announced that it would make free money transfers available to and within Italy.

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