Travel is the third worst digital commerce sector for abandoning transactions on mobile, according to latest research commissioned by Jumio.
The 2015 Jumio Mobile Consumer Insights Study follows up on an identical study carried out by the firm in 2013. It was conducted online by Harris Interactive among 1,000 UK adults.
Jumio estimates that the UK travel sector alone lost out on £2.7 billion of transactions in 2014 due to cart abandonment on mobile devices.
Usability issues continue to be a major issue rather than uncertainty about the actual purchase of the product.
Jumio’s abandonment rate league table listed travel on 38% behind food (39%) and fashion (53%)
- Fashion – 53%
- Food (groceries or takeaway) – 39%
- Travel – 38%
- Entertainment – 35%
- Household goods – 35%
- Events tickets (concerts or sporting events) – 30%
- Electronics – 30%
- Financial Services application (opening an account, transferring money) – 25%
- Online Gaming (opening an account) – 24%
The 2015 study found 55% of UK adults have abandoned a mobile transaction.
Customer concerns about usability were the top three reasons for abandonment: slow loading times (32%), payment process too complicated (27%) and difficulty navigating checkout (26%).
Uncertainty about the purchase only accounted for 21% of all abandonments. Payment security was cited as a reason for abandoning a purchase by 16% of respondents.
Concern about the security of personal information was cited by just 12% of people. The study found around one-third (32%) of those who abandon a transaction do not attempt again.
Marc Barach, chief marketing officer at Jumio, said: “As mobile transactions continue to skyrocket, so do abandoned purchases, incomplete account openings, and lost revenue.
“Businesses have heeded the warning and are finally prioritising mobile checkout experiences, underscored by the ten percent improvement in abandonment rates over the last two years.
“But, experiences are still far from being as seamless as they need to be in order for retailers to stem the tide of lost opportunity and put a potential £6 billion back in their pockets.”
Barach added: “While consumers were less likely to say they’d abandoned a transaction that involved opening an account, as compared to making a purchase, this may be in part because these transactions typically require some degree of forethought and commitment, particularly in financial services.
“These businesses still need to keep factors such as ease of use and security top of mind to maximize the number of users who complete their transaction moving forward.”
The Jumio study found the lower the value of the transaction the more likely it will be abandoned with £1 to £49 purchases abandoned 39% of the time and over £100 just 12%.
Two thirds of those who have abandoned a mobile transaction attempted the transaction again later but 27% resorted to a desktop computer compared to 22% on their phone.
Men (73%) were far more likely than women (63%) to attempt a transaction again.