Middle-market merchants are focusing on improving the checkout experience to better serve customers and improve conversion rates.
According to a PYMNTS Intelligence report, “U.S. Merchants Want Help From PSPs on Make-or-Break Checkout to Boost Conversion,” in collaboration with Mastercard, which surveyed 300 middle-market eCommerce merchants in five countries (Australia, Brazil, UAE, U.K., and the U.S.) highlighted challenges in checkout user experience, which merchants prioritize over payment processing back-end issues.
U.S. merchants expressed a strong demand for technology solutions, especially one-click checkout options, to streamline the process and increase conversion rates.
US Merchants Prioritize Conversion
Increasing conversion rates was identified as the No. 1 priority for U.S. merchants when requesting new technologies from payment service providers (PSPs). According to the report, 44% cited conversion rate improvement as the most important factor driving their requests, with an additional 28% considering it an important factor.
This focus on conversion illustrates how merchants view other concerns — such as fraud reduction or customer experience — as secondary to the goal of increasing sales. The data suggests PSPs should align their marketing and product offerings with this priority, focusing on features that can directly impact conversion.
Many U.S. merchants (78%) reported they can ask their PSPs to implement new features, with 55% of them having done so. This shows merchants are monitoring technological trends and seeking ways to improve their checkout processes. However, 22% of merchants felt they couldn’t approach their PSPs for new features, possibly due to a lack of awareness about available services.
Additionally, 63% of U.S. merchants said their PSPs automatically implement new features, which can help streamline the process. The opt-in nature of adding new payment methods means merchants have control over the features they adopt, making clear communication from PSPs essential to driving these upgrades.
Most Requested Upgrade
According to the report, one-click checkout technologies were the most requested feature among U.S. merchants, with 45% asking their PSPs to implement them. One-click solutions are seen as an efficient way to speed up the checkout process, improve user experience, and ultimately drive higher conversion rates.
Secure card on file (27%) and biometric authentication (25%) followed as popular requests. Despite these preferences, newer technologies such as gateway tokens (22%) and network tokens (20%) were less frequently requested, suggesting many merchants remain unsure about how tokenization can impact the checkout experience.
Despite their role in improving checkout, U.S. merchants don’t always view PSPs as strategic partners, according to the report. Only 44% felt their PSP made checkout easy, and just 15% saw this as the most important benefit. Less than 30% believed their PSP boosted approval rates or reduced false declines. Consider 65% valued PSP support availability and 61% appreciated ease of use.
