More retailers allowing international payments as Brexit looms

Analysis of the UK’s top 250 retailers has found a 19% year-on-year increase in the number of brands offering the option to pay in international currency.

The figure forms part of an annual performance index carried out by e-commerce and digital agency, Visualsoft.

The report examined the sector’s biggest names and found that 81% of these retailers were offering customers the option to pay in non-sterling alternatives. This was an increase on the 62% of retailers that offered international payments in 2017. The majority of these are Euros and USD, with 1% of retailers offering Yen.

Visualsoft suggested the increase was likely to be a reaction to “Brexit-related uncertainty” in the lead up to 29 March.

The research also found that the prevalence of innovative payment methods is increasing. For example, Amazon Pay is being used by 10% of top retailers, just a little over a year since it was introduced.

A further one in 10 retailers offers finance products from lenders such as Klarna – up from almost nothing in 2017. Research has found that 78% of consumers would consider purchasing through retail finance, with the average spend of £620

However, this has impacted basic payment methods as 23% of retailers don’t offer a payment choice other than a mainstream credit or debit card. This has worsened by 4% year-on-year.

Dale Higginbottom, head of CRO at Visualsoft, said: “These figures suggest proactivity in the lead-up to Brexit and adoption of new payment trends, which is great to see. However, we know that up to a quarter of consumers also abandon their transactions at checkout because the retailer doesn’t provide their payment method of choice.

“Offering a wide range of options is an important way for retailers to maximise their sales potential, but too many are still not doing so – with 23% neglecting an offer outside of traditional cards. This inability to get the basics right could prove crucial as we move into 2019.”