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Mobile payments ‘feel safer’ than cards

Mobile payments ‘feel safer’ than cards

Most consumers (80%) say they would spend more online if they were offered an easier and more secure way to pay and, at a ratio of almost 4 to 1, most believe that direct carrier billed mobile payments are more secure than credit or debit cards for online purchases, according to research from mobile payments firm PaymentOne.

The ‘2011 Consumer Payment Poll’ found that consumers have dramatic and growing concerns about the safety and privacy of using credit or debit cards for online transactions. More than half of consumers surveyed admitted to abandoning online purchases at check-out because of these concerns, confirming a huge loss in potential revenue for online merchants.

But how much more would consumers spend if they didn’t have to share their sensitive personal data or type in a long credit card number to complete their purchase? The survey found that online merchants could add aggregated yearly revenue of US$109.8 billion simply by offering an alternative ‘no credit card required’ way to pay online.

The feeling that consumers would spend more online if they had a more secure payment method was consistently high across a range of segments such as age, ethnicity, income, geography, early/late adopters of technology and gender, with certain demographics (including higher income, younger and minority segments) displaying an even higher demand for easier and safer payment alternatives.

Nearly 60% of consumers said they were more likely to visit and buy from web sites that offer ‘no credit card required’ payment options. From the merchant’s point of view, this is good news, as the survey also indicated that digital merchants could realise incremental average monthly revenue of US$89 per consumer simply by adding to their available payment methods.

Shoppers’ security and privacy concerns were universal across all age groups and income ranges, suggesting that the majority of online consumers would be inclined to purchase more online if their security and privacy concerns were addressed. Respondents voiced concerns about using credit cards to shop online, including:

  1. I’m concerned a merchant or website will start sending me junk mail (55%);  
  2. I’m concerned my personal information will be sold to other merchants (54%);  
  3. I’m concerned my credit card information will be intercepted (51%);  
  4. I’m concerned unauthorized parties will access my personal information stored by merchant (51%);  
  5. I’m concerned my credit card information will be misused by merchants (41%);  
  6. I don’t like the idea of providing private or personal financial information (38%);  
  7. I worry that my personal financial information could be intercepted over the air when I enter it using my phone (32%).

“Consumers’ concerns around the security and privacy of online payment transactions are staring digital merchants in the face and demanding attention,” concluded Brad Singer, executive vice president for PaymentOne. “In today’s economy where every cent counts and every customer is vital to the success of a business, merchants need to do more to ensure that customers aren’t scared away when it is time to check out.”

More Info: 

http://www.paymentone.com

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