Marqeta Research: 40% of UK Shoppers Abandon Carts Due to Friction-Heavy Security Checks

Quick Summary

New research from Marqeta reveals that 40% of UK shoppers have abandoned online purchases due to payment security friction. While 80% of consumers support fraud protection, poorly executed checks like delayed codes are driving cart abandonment and damaging long-term customer loyalty across the UK retail landscape.

How Does Payment Security Friction Impact Merchant Revenue?

Here is how Marqeta solves the conversion challenge for merchants by identifying the hidden costs of payment security friction. While security is a priority for 80% of UK shoppers, the implementation of these checks often leads to lost sales opportunities. Specifically, 40% of consumers have walked away from a transaction because a security code failed to arrive or timed out.

• 40% abandonment rate due to intrusive or failed security checks.
• 55% of consumers prefer selective, adaptive controls over blanket security measures.
• 47% of users want manual controls, such as the ability to lock or freeze cards instantly.

By moving away from one-size-fits-all security, businesses can protect revenue while maintaining high safety standards. The data suggests that real-time fraud alerts are far more effective at maintaining consumer trust than disruptive checkout interruptions.

What Role Does Dispute Resolution Play in Customer Retention?

The research highlights that payment security friction extends beyond the checkout to the post-purchase experience. A staggering 83% of consumers would change their card usage following a negative dispute experience, with 30% prepared to stop using a card entirely. This proves that efficient dispute resolution is a critical component of the modern payments value chain.

• 32% of shoppers raised a dispute or chargeback in the last year.
• 69% of claimants felt the current dispute process was too long or inefficient.
• Only 41% of users felt supported by their provider during a fraud claim.

For issuers, the speed of resolution is just as vital as the prevention of the initial fraud. Marqeta notes that 23% of consumers cited slow decision-making as a primary pain point, suggesting that automated dispute workflows could be a major differentiator for fintechs.

Can AI Improve the Balance Between Security and Experience?

UK consumers are increasingly open to AI-driven payments, provided the technology acts as a helpful assistant rather than an autonomous decision-maker. Approximately 45% of respondents are comfortable with AI-powered fraud detection that stops unusual transactions and provides real-time warnings. This indicates a clear path for Marqeta and its partners to integrate more sophisticated machine learning into the payment security friction layer.

• 38% of consumers welcome AI to improve the overall payment experience.
• 41% of users want AI-driven updates on refund and dispute progress.
• Real-time notifications are the most trusted application of AI in finance today.

"Consumers are telling us they want both safety and simplicity," said Anthony Peculic, Interim Chief Product Officer at Marqeta. "The challenge for the industry is to protect shoppers without turning legitimate payments into a frustrating process. The strongest payment journeys are the ones that feel invisible when everything is working, and highly responsive when something goes wrong. At a time when household budgets are under real pressure, every failed payment, delay or unresolved dispute matters more than ever."

FF NEWS TAKE:

This data from Marqeta definitely moves the needle by quantifying the massive revenue leak caused by payment security friction. For years, the industry has prioritized 'security at all costs,' but a 40% abandonment rate is unsustainable. The shift toward adaptive, AI-driven controls isn't just a technical upgrade; it's a commercial necessity. If issuers don't solve the 'invisible security' puzzle soon, they risk losing both transactions and cardholder loyalty to more agile competitors.