Z in account-to-account( A2A) payments, has launched the latest edition of its PayTo Index, A New Frontier for Retail & eCommerce, offering insights into what is enabling and limiting PayTo adoption within the online retail sector.
INDUSTRY RETAIL. TECH
PayTo payments in online retail surge 301 % but poor bank UX hinders conversion
unclear authorisation steps or the absence of in-app support – significantly impacts a consumer’ s chance of converting. In contrast, banks that surface real-time, in-app prompts and deep links to PayTo agreements are achieving dramatically higher conversion rates. For example, one bank’ s introduction of real-time push notifications lifted agreement conversions from 40 % to 70 %.
Incentives drive first-time and repeat PayTo use epto, Australia’ s leading innovator
Z in account-to-account( A2A) payments, has launched the latest edition of its PayTo Index, A New Frontier for Retail & eCommerce, offering insights into what is enabling and limiting PayTo adoption within the online retail sector.
“ Our latest PayTo Index launches as Black Friday and Cyber Monday approach – a pivotal moment for retail globally. And it comes at a time where Australia’ s retail growth remains flat, requiring retailers to go above and beyond to encourage sales through more cost-effective and seamless digital payment methods like PayTo,” Chris Jewell, President and Co-Founder, Zepto.
The new report reveals PayTo’ s Account on File method is emerging as the practical alternative to the major card schemes for online retailers, delivering lower transaction fees, improved cashflow and a better postpurchase experience. Large marketplaces and major retailers are rapidly coming online, propelling the shift to real-time, account-toaccount payments.
Poor UX within banking apps is limiting conversion
Despite strong momentum, inconsistent user experience across banking apps is hindering PayTo Agreement conversion, and in turn, cart conversion. The report reveals that poor UX within consumers’ banking apps – such as buried PayTo Agreements,
To truly unlock the full potential of PayTo, we need consistent standards across banks, merchants and platforms.
The Index also reveals how a leading e-commerce brand used targeted incentives to accelerate PayTo adoption. In an effort to diversify its payment mix, reduce reliance on major card schemes, lower transaction costs and offer greater choice to customers, the brand introduced a 5 % discount for purchases made using PayTo during a major sales event.
This initiative resulted in a tenfold increase in PayTo daily transaction volumes, reaching US $ 1.2 million in a single day and half of which was generated by first-time PayTo users. Notably, 63 % of these new customers returned for a subsequent purchase, underscoring how well-designed incentives and strategic checkout placement can drive not only initial adoption, but also long-term customer loyalty.
“ Incentives, when combined with clear consumer education and a seamless user experience, are highly effective at driving PayTo adoption in e-commerce. But incentives alone aren’ t enough,” said Jewell.“ To truly unlock the full potential of PayTo, we need consistent standards across banks, merchants and platforms. That means intuitive, real-time authorisation in banking apps, prominent positioning at checkout and ongoing education to build trust and confidence among consumers.”
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