|By not accepting cash payments online retailers are closing the door on potential sales of up to £2.5 billion from young people, according to exclusive research from e-commerce payment brand Ukash.|
By only accepting payments from plastic cards retailers are failing to accommodate millions of young people who could lift the current levels of online sales of £18.3 billion (i) by nearly 14%, if they were able to make cash payments over the internet.
Hans Olav Hagen, managing director of Ukash, said: “Young people represent the group that are most adept at using new technology and among the first to display new consumer behaviour trends. However, they are currently being ‘digitally excluded’ from shopping online. We’d like to clear this bottleneck and get every part of society shopping online regardless of their age. Up until now retailers have not been able to get access to this market but we have the solution that can open it up for them and get younger people spending online.”
What retailers have been overlooking is that cash still remains the major form of payment in the retail industry - especially for lower value transactions – and that young people have no option but to pay in cash. Therefore online retailers are making the mistake of ignoring this potentially lucrative segment of the market.