Spam, Security Concerns Top Online Shopping Barriers

December 16, 2011

paymentone-concerns-among-online-shoppers-dec11.gif55% of online consumers who have shopped in the past 90 days say that when making a digital purchase of under $25 they are concerned that the site will start sending them junk e-mail, closely followed by the proportion who cite a concern that their personal information will be sold to other merchants (54%), according to [download page] a PaymentOne survey conducted by Javelin Strategy & Research released in December 2011. Data from “Why Consumers Don’t Pay: Opportunities for Digital Commerce” indicates that a majority of active online shoppers are concerned that their credit card data would be intercepted or that unauthorized parties would access the information saved in the merchant’s database. Roughly 2 in 5 worry that their credit card data will be misused, while 20% would prefer a more anonymous payment method.

Secure Options Could Drive Significant Spending Increases

paymentone-payment-alternatives-spending.jpg79% of decisive consumers (those who indicated a preference) said they would be more inclined to make online purchases if given easier and more secure payment options than credit and debit cards. Of those, 42% said they would spend $26-100 more online per month using a computer, mobile phone, or smartphone, while 28% said they would spend $10-25 more. A greater proportion indicated they would spend over $100 more per month (17%) than would spend less than $10 more per month (14%). The average increase in online spend was found to be almost $89 across multiple merchants.

Meanwhile, nearly 6 in 10 consumers say they would be more likely to buy digital services from sites that offer “no-credit-card-required” payment options. Certain demographic trends apply: consumers aged 25-34, 35-44, and 18-24 are most likely to buy from such websites (67%, 63%, and 62%, respectively), while over 69% of African-Americans and 68% of Hispanics indicated they would be more likely to visit and buy from such websites.

3 in 5 Have Abandoned Purchase

61% of consumers who have ever made an online purchase say they have abandoned the payment process of a purchase while shopping online. Of those, many cite credit card-related concerns as the reasons for their abandonment, such as the possibility of receiving junk e-mail (53%), having their credit card information intercepted (48%), or having their credit card information misused by merchants (41%).

According to a National Cyber Security Alliance and McAfee study released in November 2011, 42% of consumers have stopped or abandoned a purchase on a web site in the past year because of a safety or security concern. The leading reason was a lack of certainty over the security of the site (56%), closely followed by a feeling that the site requested more information than the consumer thought necessary (53%).

Carrier Payments Viewed As More Secure

Respondents to the PaymentOne survey indicate they are almost four times as likely to say that charging purchases directly to a phone bill via a text message is more secure than loading credit card or bank information on the phone in order to make a payment (27% vs. 7%).

Of those that would prefer to charge to a carrier bill, 56% would prefer small purchases (under $25) to be billed to their wireless phone bill, while 22% would prefer the purchase to be billed to their landline phone and broadband bill.

About the Data: The PaymentOne survey was conducted in September 2011 among 2,000 US consumers.

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