Many Consumers Want Frictionless Secure Transactions, or They Will Leave: Report

What should come as no surprise for those conducting business online consumers want it all, especially security with minimal friction in their digital transactions, or they will take their business elsewhere.

A new report commissioned by Seattle-based Ekata, which provides digital identity verification data, revealed most consumers demand trust, security, and data privacy, and also expect their digital transactions to be fast and frictionless. For the report, “Infinite Want: Consumers Demand Speed and Security in the Digital Experience,” more than 7,000 consumers across North America and Europe revealed their digital experience expectations, how they respond with unmet needs, and if they’ve personally experienced fraud.

“The clear message of this survey is that consumers aren’t willing to compromise on speed, convenience or security when it comes to digital transactions,” Beth Shulkin, vice president, global marketing, Ekata, said. “This puts pressure on businesses to build customer trust with a smooth, yet highly secure experience from the very first interaction. Companies that can deliver on all fronts will earn the loyalty of today’s consumers.”

The majority of surveyed consumers have on at least on one occasion faced frustration when going through the digital identity verification process required in order to create an account or process a transaction on a company’s digital platform. Around two thirds (65%) of those that used a marketplace company’s digital platform have faced frustration, and the same is true for over half when using a financial institution’s or online lender’s digital platform (57%) and/or a digital payment processing platform (52%). In all three of these specific examples, the most common cause of this frustration was that the process took too long.

Of the consumers experiencing frustration when using a marketplace company’s digital platform, the majority (66%) have actually then abandoned their account opening or transaction on at least one occasion. Similar is true in the context of digital payment processing platforms (60%) and on a financial institution’s or online lender’s digital platform (56%).

Among the report’s other key findings:

• Digital experience expectations are very high. Seventy-three percent of consumers said when trying to create an account or process a transaction on a modern digital platform (i.e., online lending, payment, e-commerce and marketplace site, etc.), the process should happen instantaneously. Furthermore, 92% expect a fast, frictionless experience while also getting one that is as trustworthy and secure as possible.
• Businesses face increasing pressure to get customer experiences right, every time. Three quarters do not have patience for subpar digital experiences due to alternative options available in the marketplace. An astounding 66% abandoned their account opening or transaction on at least one occasion due to friction, including the process taking too long.
• Consumers who fear future fraudulent attacks, believe protection is the business’ responsibility. Nearly half of North American consumers (nearly 40% overall) have personally had their identity stolen or been a fraud victim; while 90% are concerned they will be the subject of future fraud. Sixty-one percent of consumers believe the responsibility for avoiding fraud lies with the companies that have access to their personal data.
• In the case of fraud, there are no second chances. If consumers do experience fraud on a company’s platform, 91% say they likely will not use that company again in the future, while 86% say they will tell others about their fraudulent experience.

“What consumers have is never quite good enough, and their expectations are always that something better is just around the corner,” the report said. “And the digital era that we live in enables this. Consumers can get what they want, when they want, so consumer-facing brands now need to provide not only great products and services, but also a great overall digital customer experience.”

The report added, “While this is great news for consumers, it presents a considerable problem for companies. The bar is higher than it has ever been, and it is only moving higher. For many companies, they are already way behind.”

The report used more than 20 in-depth interviews with employees of marketplaces, financial institutions, online lenders and digital payment processing platforms conducted between March and May 2019. A quantitative survey of 7,000 consumers across North America and Europe in July and August 2019 for the qualitative research phase.