Digital Payments and App Localization: Progress and Pain Points
October 03, 2024

Rob Mason
Applause

In an increasingly digital world, global e-commerce is continuing to grow. E-commerce sales are expected to exceed $6.3 trillion by the end of this year, highlighting how important digital quality success is for modern businesses. My organization, Applause, recently completed its first Digital Payments and Localization Survey, which collected input from more than 6,700 software developers, QA professionals, and independent consumers to look into digital payment and app localization best practices, testing strategies, and user behavior and preferences. Here's what the survey uncovered.

Digital Payment Pain Points

Despite steady, continued growth in the e-commerce business, limited payment options, bugs, and poor translations are still causing consumers to abandon their transactions.

■ 41% of consumers encountered an issue that impacted their ability to make a payment recently. Cart abandonment contributes to an estimated $136 billion in lost revenue annually for U.S. retailers.

■ 52% of consumers said they had abandoned an app due to poor localization, specifically:

- 48% of app responses used incorrect words or syntax

- 40% of apps assumed local knowledge with which they were unfamiliar

- 38% of apps had misspellings

Even as businesses recognize the value of tailored digital experiences in different locations and seamless cart checkout processes, billions in revenue are lost as apps fail to meet consumer expectations.

Consumer Purchasing Preferences

Modern consumers expect their brands to provide accessible, intuitive apps for shopping and completing purchases with their desired payment methods.

■ 76% of consumers said they would likely abandon a transaction if their preferred payment method were not accepted.

■ Credit and debit cards continue to be the most popular payment method for US consumers, preferred by 78% of consumers, while mobile/digital wallets were a close second at 68%.

■ 62% of software and QA professionals said consumer preferences drive which payment methods are accepted for applications. However, there is a misalignment with consumers, as only 56% of organizations accept mobile/digital wallets.

Developer Priorities

Organizations and their developers recognize how important app localization and digital payment quality are becoming.

■ 66% of organizations are working to adapt their customer journeys and checkout processes to align with regional and cultural norms.

■ More than half of organizations (59%) rely on in-house developers and QA staff who are native speakers to test apps for each language.

For consumers today, the ability to make a purchase with their preferred payment method is critical. So is using an application that is accurate for its location and works quickly. Payment failures and app shortcomings immediately impact a business's bottom line via lost sales, abandoned carts, and dissatisfied potential customers.

With so much at stake, organizations must prioritize getting digital payments and localization for their apps right. Developers must be mindful of the purchasing process, from the cart to checkout to returns, exchanges, reward programs, and more. The best way businesses can ensure their applications are working as they should and meeting consumer demands is to invest in the process of testing for these elements. Testing different payment methods and how apps perform in different locations is critical for closing the gap between consumer expectations and app performance reality.

Rob Mason is CTO of Applause
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