Local fintech startup YouPay launches unique online shopping option enabling friends and family to buy desired gifts – the solution can reduce massive waste of unwanted Xmas presents and US$39 trillion per year in abandoned cart missed sales
In 2020, retail e-commerce sales worldwide amounted to US$4.28 trillion, and e-retail revenues are projected to grow to US$5.4 trillion US dollars in 2022. Yet 88% of carts are abandoned, totalling US$39 trillion per year in missed sales.
A new solution from YouPay, a Brisbane fintech company that separates the payer from the recipient at the shopping checkout, seeks to address this waste – and also help reduce unwanted Christmas presents.
Youpay allows online shoppers to fill their cart and send it to another person to purchase on their behalf, instantly – has just launched on online street fashion behemoth and eCommerce success story, Culture Kings, and in the coming months is set to be integrated into the eCommerce platforms of some 250 other brands who have registered their intent to offer the solution.
YouPay’s collaborative approach to online shopping solves a problem countless shoppers encounter every day: how do you quickly shop for the products you want or need when you’re not the one who needs 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 such as gifts, as well as purchases from parents, partners, friends, professionals, employers, charities and more. These purchases can be made using whatever payment methods the retailer usually offers to its shoppers.
Research from The Australia Institute suggests that 30% of Australians expect to receive a Christmas gift they will never use, meaning that wasted presents total around $980 million every year, which usually end up in landfill.
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. The survey found that 53 per cent of Australian adults, the equivalent of 8.5 million people, received at least one unwanted Christmas gift. Clothes and accessories topped the list for unwanted gifts (20%), followed by beauty products (15%).
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 makes it easy for one person to shop online and another person to pay for it, quickly and securely,” said YouPay CEO and Founder Matt Holme.
“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 value proposition was enough to entice Culture Kings to jump on board 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, who was one of the early adopters of Buy Now Pay Later, said YouPay provided a solution to a frustration for merchants and the consumers.
“With more than $1 million of goods left in abandoned carts each day, we were looking for a simple yet effective solution that would not only reduce this, but make it easier for our customers to be able to share their cart as opposed to sending a link to someone and hoping they select the right size and colour,” he said.
“YouPay solves a really common problem with a very simple solution – it is easy for customers to use and for purchasers to make a payment in one easy click. People can now share carts with parents, partners and friends, which is a great way to purchase and get what you want.
“The YouPay solution also 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 seeing the platform and 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.
Mr Holme added that the aim was to allow shoppers to get the products they would actually like, while eliminating the heavy lifting a payer usually has to do that results in abandoned carts or incorrect purchases.
“We’re very conscious of the need for people to spend responsibly, and while there are many options out there, we believe our shared system will help reduce the risk of debt among consumers,” he said.
“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 brands like Culture Kings already activated and more in the integration pipeline, the company expects greater momentum in 2022 as more consumers and merchants recognise the value of the YouPay solution.