UK-cross border retail has declined by 71%, according to research by payments platform Adyen.
A report by FinTech & Finance News detailed that 54% of consumers agree that the delivery partner is an important factor when choosing to shop online with a retailer. Additionally, 37% of shoppers said they will only buy something from abroad if the delivery charge is reasonable.
A common fear shoppers have, according to Adyen’s research, is from unexpected additional taxes and charges, with 30% of shoppers saying they have avoided shopping with an international retailer for this reason.
The desire to avoid a purchase from abroad is hardly surprising during a year troubled by supply chain crises. The Suez Canal incident at the start of the year caused major delays. Additionally, lorry driver shortages caused by Covid-19 travel complications left consumers being warned their Christmas presents might not have arrived on time.
In addition, a lack of price transparency appears to be another deterrent. One in five shoppers (22%) said they would only shop abroad if they can use their usual payment methods, and 20% expect prices to be displayed in their local currency.
The preference to avoid high delivery fees and unexpected taxes is reflected in consumers’ preference for in-person shopping. While online shops have suffered, it looks like local brick and mortar stores have benefited. Buy Now, Pay Later provider Afterpay released its consumer shopping trends for 2021, which revealed in-store shopping grew 384% year-on-year.
Colin Neil, managing director, Adyen UK, said, “If Brits are finding it harder to shop abroad, you can be sure that shoppers from other countries will have similar experiences, which is a big concern for those UK retailers trying to sell internationally.
“While global supply chain challenges and international customs charges are out of the control of retailers, there are many things they can do to make cross-border commerce easier. Things such as converting currencies and accepting common payment methods from other countries for online shoppers are low cost, and straightforward ways to simplify the experience, but they have massive impact. In an age where every sale counts in retail, these small tweaks can be all the difference.â€
The research was part of a report on the state of the UK retail sector, titled The Expectation Gap. Research was conducted by Censuswide and Opinium on behalf of Adyen.
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![Temenos (SIX: TEMN) today announced that National Bank of Iraq (NBI), part of the Capital Bank Group, has successfully gone live with Temenos core banking and payments. NBI, which has 27 branches across Iraq, offers a comprehensive range of services to individuals and businesses in the country. Since 2005, NBI has been majority owned by Capital Bank, one of the top financial institutions operating in the Jordanian and regional markets, with assets of approximately JOD 7.6 billion[1]. With this implementation, NBI moved from its legacy systems onto the same core banking platform as other entities in the Capital Bank Group. This will enable NBI to operate more efficiently and integrate seamlessly with other systems to develop new products faster and deliver an improved customer experience. Capital Bank Group is a long-standing Temenos customer with other entities in the Group including Capital Bank of Jordan, Bank Audi, Société Générale Bank Jordan and NBI Saudi Arabia, already on the Temenos platform. NBI also becomes the first part of the group to adopt Temenos Payments, which enabled the bank to process more than 100,000 transactions of incoming and outgoing domestic and international payments in the first 15 days of operation, with a 99% straight-through processing rate. The migration to the Temenos platform for core banking and payments at NBI was completed in under 12 months thanks to Temenos’ pre-configured banking and payments capabilities and APIs which reduced the need for complex customizations, as well as close collaboration between Temenos, NBI, Capital Bank and delivery partner ITSS. This success was recently recognized in the IBS Intelligence Innovation Awards, with Capital Bank winning ‘Best Implementation of Core Banking Services'. The implementation at NBI follows several other successful transformation projects with Temenos for Capital Bank in the last few years, including the launch of NBI’s branch operations in Saudi Arabia in just 45 days, as well as the integration of Bank Audi and the former Jordanian operations of Société Générale, each of which was achieved in under four months. Collectively, these projects helped Capital Bank to increase operational efficiency by more than 50% within three years, bringing significant cost savings and an improved customer experience. With faster, more accurate processing and immediate service requests, the bank has maintained high customer retention rates and a reputation for service excellence. Izzidin Abusalameh, Chief Operations Officer, Capital Bank Group, commented: “This achievement marks a significant milestone in our digital transformation journey and positions us as a leading player in the banking industry. We have seamlessly transitioned the National Bank of Iraq to a cutting-edge core banking system which will not only enhance operational efficiency but also support providing our customers with a superior digital banking experience. Our continued partnership with Temenos has not only provided us with an advanced technological platform but has also facilitated a culture of flexibility and adaptability, enabling us to execute our ambitious growth plans.” Lee Allcorn, Managing Director, Middle East & Africa, Temenos, said: “Congratulations to National Bank of Iraq and the Capital Bank team on this successful implementation that gives NBI business agility and the same modern technology platform and ability to deploy fast with pre-configured banking capabilities as the rest of the group. With Temenos, Capital Bank Group is future-ready, and we are proud to support them as they continue to innovate and leverage our platform to grow sustainably and enhance the banking experience for customers.”](https://fintech.global/wp-content/uploads/2024/04/rupixen-Q59HmzK38eQ-unsplash-2-218x150.jpg "Flutterwave teams up with Acquired.com to streamline outward remittances in EU and UK")
