Amazon Wins When Retail Checkout Breaks

Cart Abandonment Rate with Full Capabilities

16%

The abandonment rate for businesses with all five payment orchestration capabilities in place.

Cart Abandonment Rate with Limited Capabilities

The minimum abandonment rate reported by companies with only two or three payment orchestration capabilities.

Millennial Cart Abandonment Frequency

5 times/month

Average number of times millennials report abandoning shopping carts in a month.

§ 01 Executive Snapshot

What: Amazon benefits from retail checkout failures as consumers abandon carts due to poor payment processes.
Who: Retailers, PYMNTS Intelligence, Spreedly, and consumers (millennials and Generation Z).
Why it matters: Efficient payment orchestration is crucial for reducing cart abandonment and improving revenue outcomes for online retailers.

The PYMNTS Intelligence report indicates that businesses with all five payment orchestration capabilities see cart abandonment rates drop to 16%.
Companies lacking full capabilities face cart abandonment rates of at least 3% among 36% of their users.
Millennials reported abandoning shopping carts nearly five times per month, while Generation Z reported nearly four times monthly.

The rise of digital-first shopping has heightened expectations for seamless online experiences, making efficient checkout processes essential for retaining customers.
As agentic commerce becomes more prevalent, the need for robust payment systems will intensify, impacting how consumers interact with online retailers.

Immediate implications include increased competition for retailers to enhance checkout experiences or risk losing customers to competitors like Amazon.
Long-term implications suggest that as AI-driven shopping becomes standard, businesses will need to adapt to evolving consumer expectations for quick and efficient transactions.

Potential risks include technical failures in payment systems that can lead to increased cart abandonment and loss of consumer trust.
Competition from larger platforms like Amazon and the need for advanced technology to meet customer expectations pose ongoing challenges for retailers.

Monitor the rollout of new payment orchestration technologies and capabilities among retailers to gauge improvements in checkout performance.
Future developments in agentic commerce, such as enhanced AI shopping tools, will indicate shifts in consumer behavior and expectations regarding payment processes.

§ 07

What happens when retail checkout processes fail?

When retail checkout processes fail, consumers often abandon their shopping carts, which benefits Amazon as they capture these lost sales.

Why is efficient payment orchestration important for retailers?

Efficient payment orchestration is crucial for reducing cart abandonment and improving revenue outcomes for online retailers.

How often do millennials and Generation Z abandon their shopping carts?

Millennials report abandoning shopping carts nearly five times per month, while Generation Z reports nearly four times monthly.

What are the risks retailers face with payment systems?

Retailers face risks such as technical failures in payment systems that can lead to increased cart abandonment and loss of consumer trust.