MAY 23, 2007
Some just don't mix credit cards and the Internet.
Eight in 10 consumers who had a preference said they would spend more online if they had a safe and convenient alternative to credit cards, according to Javelin Strategy and Research's "2007 Annual Javelin Consumer Payment Poll," commissioned by PaymentOne.
Respondents said they would spend $100-$1,000 more annually with alternative payment options.
That "who had a preference" part was important, because many shoppers already buy with their payment method of choice, be it credit, debit, PayPal or something similar. The Javelin study shined a light on those who did not feel these existing options were safe.
Security and credit alternatives were the main factors that would get consumers to make more purchases.
Two-thirds of respondents limited their online shopping, fearing abuse or theft of their privacy and financial information.
Among those who did not buy online, the top concern was the possibility of information being intercepted during a transaction or accessed by unauthorized parties. Lack of a credit or debit card was also a problem for 22% of non-buyers.
Although retailers have done a good job in addressing online shopper concerns about security and shipping, a third of Internet users were still not online buyers as of 2006.
Credit card fraud and identity theft were the main reasons cited by respondents to "The Multi-Channel Shopping Transformation Study" conducted in April 2006 by the e-tailing group in partnership with J.C. Williams Group and StartSampling.
Most consumers who shop online eventually take the leap to become online buyers. According to eMarketer estimates, 85% of online shoppers will also be online buyers this year.
The question is how to convert those who still have concerns about online shopping in the first place.
eMarketer Senior Analyst Jeffrey Grau says, "Many of the concerns consumers have about online buying are based on irrational fears. Nevertheless, these fears must be addressed. Having a simple return or order cancellation policy, displaying customer product recommendations and reviews, and having an easy-to-use site all help build consumer trust."
Get the latest perspective on online shopping. Read the eMarketer US Retail E-Commerce: Entering the Multi-Channel Era report.
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Friday, May 25, 2007
Security Concerns Hinder Online Buying
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2 comments:
Bill Me Later is a fantastic payment option for anyone concerned about the safety of shopping online. I work for Bill Me Later and use it all the time because it's safe and convenient. At checkout, click on Bill Me Later and answer two simple questions for a quick credit check. Approval is within 3 seconds, and then you just continue with your transaction. In a few weeks, you'll get a bill in the mail, which you can either pay in full or pay over time (just like a credit card account). It really is a great alternative that's so easy to use. Check it out for yourself at www.billmelater.com.
bloggermom,
Thanks for the info, and I agree with you. I've really pushed for Bill Me Later to be a payment option in the second phase of our cart implementation.
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Check us out at www.personalshopper.com
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