According to a recent report by DECTA, improving the design of your checkout process can result in a 35% boost in conversion rates for major e-commerce websites. This represents a significant opportunity worth $213 billion for businesses seeking to minimize customer friction. The report also highlighted that requiring website visitors to create an account was the second most common cause of negative experiences among US shoppers, with nearly 49% indicating they would abandon their purchase if confronted with this. Embedded finance is a solution that addresses these issues by providing a quick, secure, and effortless checkout experience.

The adoption of embedded finance has become increasingly popular, enabling businesses to integrate financial services into their existing products and services. A recent study conducted by DECTA revealed that adopting embedded finance can lead to higher conversion rates and a positive customer experience.

The study aimed to identify the key factors that lead to the abandonment of online shopping journeys and explore the revenue streams that online retailers can achieve through embedded finance. The study focused on British and American online shoppers, aged 19-68 and 23-68, respectively, and received responses from 1504 participants.

One of the key findings of the study was the importance of loyalty programs in retaining customers. The report highlighted that 90% of companies in the United States offer loyalty programs with 3.3 billion memberships collectively. Loyalty programs provide businesses with a means of keeping customers engaged and coming back over an extended period.

Another significant finding was that the availability of preferred payment methods is crucial for a positive customer experience. The report found that 85% of British respondents and 49% of all respondents stated they would abandon a purchase if their preferred payment method was not available. This emphasizes the importance of offering a range of payment options to customers.

The study also revealed that 54% of Americans consider embedded add-ons like insurance or financing to be an essential factor in their purchasing experience. This finding indicates the rising popularity and demand for Buy Now Pay Later solutions, which can help customers spread the cost of their purchases over time.

Additionally, the study highlighted that reducing customer friction is a $213 billion opportunity for businesses. One of the most significant sources of negative experience among US shoppers was a website that requires a login, with almost 50% of respondents reporting that they would likely abandon their shopping if they encountered this. This suggests that streamlining the checkout process and reducing barriers for customers can significantly improve conversion rates.

Overall, the report provides valuable insights into the benefits of embedded finance and the potential opportunities for businesses that adopt this approach. By offering a range of payment options, loyalty programs, and embedded add-ons like insurance or financing, businesses can enhance the customer experience, increase customer retention, and drive revenue growth.

To read the full report and explore the complete study results, please visit https://www.decta.com/company/media/the-role-of-embedded-finance-in-boosting-conversion-rates-a-report