The role of payments in building customer loyalty

In the competitive world of e-commerce, everyone is fighting to win new customers, but they usually ignore what happens once they reach their website.

This often results in the checkout experience being an afterthought. But the data shows that if you make the payment process easy, people come back - and keeping a customer is always cheaper than acquiring a new one.

While marketing is the standard way to engage past buyers, payments are a powerful, often overlooked tool for building loyalty.

It’s a startling statistic, but on average, 70% of shoppers abandon their carts before finishing a purchase. A significant portion of these departures stems from avoidable friction.

Roughly 13% of customers walk away when their preferred payment method is missing, and another 14% will leave if the total price isn’t clear upfront.

If your checkout process has poor UX, excessive form fields, and limited payment options, you aren’t making a good impression, and the likelihood of that customer returning significantly diminishes.

Loyalty relies on the path of least resistance. Offering one-click payments like Google Pay, Apple Pay, or Click to Pay demonstrates a clear respect for the customer’s time.

Digital wallets now account for an estimated 54% of global online payments , and most customers now expect this payment method to be available. Removing the need to dig out a physical card makes it less likely for the purchase to sit in the basket and be forgotten about, or breaking flow to find their wallet, only to question whether that purchase is really necessary when they return.

Customers return to businesses that make the buying process fast and simple.

A search for a discount code often ends a loyalty moment prematurely. When a code fails to work or proves too difficult to apply, 34% of shoppers will abandon their cart .

A seamless discount experience keeps the customer engaged. Promotional links should trigger the discount at the checkout stage automatically. Clear and intuitive promo code boxes prevent customers from leaving the site to search for codes elsewhere, and displaying an available loyalty balance allows customers to apply rewards with one tap.

Data shows that 92% of global shoppers prefer to purchase from sites that display prices in their local currency, and 33% abandon a purchase when they find pricing is in USD only.

Automatic currency conversion presents customers with the absolute cost in their own currency, removing the need to calculate how much they are actually spending and the fear of hidden bank fees. Providing Alternative Payment Methods (APMs) trusted in specific regions signals an understanding of local habits, which can help boost conversion rates and keep overseas customers coming back for more.

Another huge reason for cart abandonment is not trusting a website with payment information. One of the most secure ways of making payments online is with open banking, which enables customers to complete a transaction directly from their bank account via their banking app, without the need for card networks.

Open banking payments (also known as pay by bank, A2A payments, and instant bank transfers) have seen a 53% year-on-year growth in the UK, with this payment method also proving hugely popular in other jurisdictions, including Brazil (Pix) and India (UPI).

This method allows customers to authenticate via their own bank’s biometric security. By removing the need to share card details with a third party, a brand establishes itself as a security-conscious partner. This is vital, as nearly one in five shoppers cites a lack of trust in site security as a primary reason for abandoning their cart.

Buy Now, Pay Later (BNPL) has evolved into a standard loyalty driver, especially amongst younger consumers. BNPL users are 22% more likely to make subsequent discretionary purchases compared to those using traditional debit cards. Interest-free instalments provide financial breathing room for customers, helping to build long-term brand affinity.

The ultimate expression of loyalty is the subscription. Recurring payments move the relationship from a one-off transaction to a regular habit. Because payments are collected each month automatically, customers can ‘set and forget’, meaning they can receive a product or retain access to a service daily, weekly, monthly, or yearly without any stress or friction.

Every payment is an interaction that either builds or erodes brand equity. A checkout that is frictionless, inclusive, and flexible proves to the customer that a business is worth their return visit.