Online Shoppers Demand More Security

A recent study conducted by research firm Javelin Strategy & Research, in partnership with Paymentone has concluded that consumers demand more security when shopping online and would be willing to spend more if they got it!

The survey showed that 4 out of 5 consumers would be more inclined to increase their spending on the internet if online retailers were able to offer a more secure payment option. Managing Director of Javelin Strategy & Research, Phil Black said,

According to the 2011 Online Payment Poll, consumers are concerned about the use of credit cards online and related issues of privacy, fraud, security and convenience. If digital merchants simply offered consumers an alternative way to pay, such as mobile carrier-based payments, 79 percent of decisive consumers indicated they would spend more.

The survey revealed that most consumers hold the belief that direct carrier billed mobile payments is a much safer payment method for internet shopping rather than having to enter personal information and credit card numbers at the checkout screen.

If retailers made a payment option available which did not require consumers to use a credit or debit card then it is estimated that online retailers could see up to an annual $109.8 billion revenue boost.
The main concerns of survey respondents were as follows:

• 55% of respondents were worried that they would be subjected to unsolicited junk email communications after online transactions.
• 54% of consumers are concerned about their personal information being sold on to other merchants.
• 51% of those asked were worried that credit card information could be intercepted by thieves. The same number feared the merchant storing this information and then being hacked.
• 41% of the survey respondents had concerns that the merchant themselves would misuse the credit card information.
• 38% of consumers were simply uncomfortable with sharing personal information online.
• 32% of consumers were worried that personal information could be intercepted if entered using a phone or other mobile device.

These figures are fairly high, with most concerns being shared by around half of all those consumers who were asked. This is why experts believe that if consumers were reassured about the safety of shopping online then they might be more inclined to spend more. The main concerns seemed to be the storage and transmission of credit card details and other personal information which is understandable considering the number of high profile cases of hacking in recent months.

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