Research Finds: Smooth Payment Process is Crucial for Purchasers in the Baltic Region Expectations High
In a survey conducted by financial technology platform Adyen, it was revealed that a slow or inconvenient payment process can lead to abandoned purchases, particularly in the Baltic states. The survey, which was conducted by Censuswide and polled 41,089 consumers across 28 countries, found that nearly two-thirds of consumers leave an online store's checkout if they cannot pay with their preferred bank link, credit card, or digital wallet.
Tobias Lindh, head of Northern and Baltic markets at Adyen, stated that a smooth purchasing journey is a key factor in a business's competitiveness. Flexibility and ease throughout the entire purchasing process have become decisive factors for consumers, according to the survey.
In Estonia, every second consumer will abandon a transaction if the payment process is not smooth. This trend is not unique to Estonia, as 37 percent of consumers in Latvia and 42 percent in Lithuania will also abandon a purchase due to a time-consuming payment process, with Lithuanian residents in their 60s being the most likely to do so.
In response to this issue, retailers in the Baltic states are implementing innovative strategies to improve the payment process and reduce abandoned purchases. One such example is the Latvia-based fintech Handwave, which has developed a palm-based biometric payment and identity platform. This system allows customers to pay, verify age, access loyalty programs, and check-in with a simple palm scan, eliminating the need for wallets, phones, or apps and thus reducing friction at checkout.
The rollout of such biometric and frictionless payment systems in physical stores aims to significantly enhance the overall shopping experience and cut down on purchase abandonment rates. In addition to payment innovations, broader digital infrastructure projects and strategic acquisitions, such as Salling Group’s major acquisition of Rimi Baltic, indicate ongoing investment and consolidation in the retail sector that may enable economies of scale and the integration of digital payment and loyalty technologies across larger retail chains.
Though less specifically linked to payment improvements, regional digital financial platforms like Axiology also contribute by enhancing investor and SME bond accessibility, which may indirectly improve retail financing and consumer credit options.
In Estonia, over one-third of retailers have already adopted flexible purchasing and return options, such as in-store purchases with home delivery. Another 20% of Estonian businesses plan to implement similar solutions within the next year.
The convenience of the shopping experience directly influences purchasing decisions, according to the study. Therefore, it is clear that retailers in the Baltic states are primarily focusing on biometric solutions, specifically palm recognition technology, to make payment quicker and more convenient, alongside strategic market moves that support digital innovation in retail operations.
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