In 2020, retail e-commerce amounted to $4.28tn, and e-retail revenues are projected to grow to $5.4tn in 2022. Yet 88% of carts are abandoned, thus $39tn in missed sales.
A new solution from YouPay, a Brisbane fintech that separates the payer from the recipient at the shopping checkout, seeks to address this waste and reduce unwanted presents.
The company’s innovative eCommerce solution allows online shoppers to fill their cart and send it to another person to purchase on their behalf, instantly.
YouPay launches ecommerce street fashion platform
It has just launched on online street fashion behemoth and ecommerce success story, Culture Kings, and in the coming months is set to be integrated onto the ecommerce platforms of some 250 other brands who have registered their intent to offer the solution.
YouPay’s approach to online shopping solves a problem for shoppers in how to quickly shop for the products you want or need when you’re not the one who has to pay for them.
YouPay’s offering increases conversions for eCommerce platforms, while for consumers it removes inefficiencies in the shopping process for a range of use cases like gifts, and purchases from parents, partners, friends, professionals, employers, charities and more.
These purchases can be made with payment methods that the retailer offers to shoppers.
The Australia Institute suggests that 30% of Australians expect to receive a gift they will never use, thus wasted presents total around $980m annually, which usually end up in landfills.
And according to a Gumtree survey, millions of Australians may be waking up with more than Christmas leftovers, as over 19.3 million unwanted gifts were received last year.
53% of Australian adults or 8.5m people received at least one unwanted Christmas gift. Clothes and accessories topped the list for unwanted gifts (20%), followed by beauty products (15%).
YouPay aims to increase ecommerce conversion rates
YouPay, which recently closed an initial $4 million seed round with Sprint, a Brisbane based venture capital firm, aims to increase ecommerce conversion rates by providing an alternative payment mechanism to enable purchases by third parties.
YouPay’s Chief Executive Officer and Founder, Matt Holme said, “YouPay makes it easy for one person to shop online and another person to pay for it, quickly and securely.”
“Shoppers simply fill their cart as usual, create a YouPay link, and then send that link to the person they would like to make the purchase.”
YouPay’s proposition enticed Culture Kings to join and integrate YouPay into its checkout options, a significant move as the retailer generates 60% of its revenue from ecommerce.
YouPay is now live on the site, launching in time for the busy holiday season.
Culture Kings’ Founder and CEO Simon Beard was one of the early adopters of Buy Now Pay Later and said that YouPay is a solution to a frustration for merchants and consumers.
“With more than $1 million of goods left in abandoned carts each day, we were looking for a simple yet effective solution to reduce this and make it easier for customers to share their cart as opposed to sending a link and hoping they select the right size and colour.”
“YouPay solves a really common problem with a very simple solution which is easy for customers to use and for purchasers to make a payment in one easy click.”
“People can share carts with parents, partners and friends to purchase and get their needs.”
“The YouPay solution has a wide range of use cases for consumers, businesses and the charity sector, that I think will really appeal to many organisations across these different areas.”
On realising the significant potential, Simon Beard invested in the business and continues to provide guidance, support and feedback on how the platform could be further enhanced.
The aim was to allow shoppers to get the products they like, while eliminating the heavy lifting a payer usually has to do that results in abandoned carts or incorrect purchases.
“We are conscious of the need for people to spend responsibly and while there are many options, we believe our shared system will help reduce the risk of debt among consumers.”
“Given our wide-ranging applications and implementation potential across all ecommerce platforms, we are ready to carve our own path in the online shopping space.”
“YouPay is a completely new segment in the online shopping universe, there’s a great amount of interest already. We can’t wait to get more merchants on board.”
With Culture Kings already activated and more in the pipeline, the company expects greater momentum in 2022 as consumers and merchants recognise the value of the YouPay solution.
