Why Checkout Friction Is Costing Fintechs More Than They…
By Karthik Subramanian
AI summary of the source article
Checkout friction, including verification hurdles and limited payment choices, causes fintechs to lose users and revenue. Data shows adding relevant payment options increases conversion and revenue, prompting platforms to upgrade payment infrastructure.
Why it matters
Unsuccessful payments lead to more customer support inquiries. Failed payments lead to more processing attempts if customers retry; they can generate more processing fees, and angry customers may not renew or keep the next payment coming in.
Key facts
- An April 2025 Stripe test showed a 7.4% increase in conversion and a 12% increase in revenue when offering at least one additional relevant payment method alongside cards.
- Baymard Institute research from September 2025 recorded an average online shopping cart abandonment rate of 70.22%.
- In February 2026, Equiti partnered with Checkout.com to expand card deposit options, digital wallets, and international money transfers.
Source excerpt · FinanceFeeds
A client has registered, passed the check-up and cleared to deposit into a new trading account. The client has selected the sum to deposit, filled out details of the card and arrived at the final screen for verification. Authentication fails, the page reloads to the payment screen, and the customer navigates elsewhere. To fintech, this may seem like just another unsuccessful transaction. In fact,…