Americans want alternative to cards for online payments - survey

Americans want alternative to cards for online payments - survey

The vast majority of Americans would spend more online if they were offered an easier and more secure way to pay than credit and debit cards, according to a survey from Javelin Strategy & Research.

The poll of over 2000 people, carried out for mobile payments and billing outfit PaymentOne, shows that four out of five respondents would take advantage of safer and simpler methods of buying on the Internet.

Asked about their concerns related to using cards to buy online, 55% are worried about receiving junk mail, 54% that their personal information will be sold on to other merchants and 51% that their data will be intercepted.

These worries mean that nearly 60% of consumers say they are more likely to visit and buy from sites that offer "no-credit-card-required" payment options.

Quizzed about alternatives, by a margin of almost four to one consumers believe direct carrier billed mobile payments are more secure than using credit and debit cards for online digital purchases.

Phil Blank, MD, Javelin, says: "If digital merchants simply offered consumers an alternative way to pay, such as mobile carrier based payments, 79% of decisive consumers indicated they would spend more, driving significant new incremental revenue from subscriptions, transactions and purchases."

Recent global research from KPMG revealed that PayPal has overtaken credit cards as a preferred form of payment for consumers shopping on the Web.

Comments: (2)

Melvin Haskins
Melvin Haskins - Haston International Limited - 13 December, 2011, 18:18Be the first to give this comment the thumbs up 0 likes

So what is wrong with PayPal?

A Finextra member
A Finextra member 14 December, 2011, 10:56Be the first to give this comment the thumbs up 0 likes

If you need to move monies from payers bank account to merchants bank account when merchant wants to be paid prior to shipping purchase you have only a few options:

1. Both parties connected to a proprietary account system like Paypal and transfer funds between accounts online. Risk: security issues on misues of funds in accounts. Pro: Global yet small network, only limited funds in payer accounts to be defrauded 

2. Both parties participate in global card systems and card payment can be accepted and merchant guarantee given by a bank. Risk: fraudulent transactions can take place for both patrties. Pro: Global widely spread network.

3. Both parties agree to use online bank account credit transfer. Risk: payer not protected from merchant non delivery, charge back at merchant mercy. Only domestic network today, Pro: Security level mandated by payer bank.

In what sense would it be better if "mobile phones " would be used instead? Either you access a proprietary payment account within or outside telco, card account or online banking account. Risks of fraud, misuse, spam and unwanted marketing are the same or even bigger compared to using a personal computer to do online shopping.

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