MODASolutions, the leading provider of payment solutions that extend online banking to checkout, today announced the results of a new consumer eCommerce survey which investigates the relationship between online bill payers and online shoppers. J.C. Williams Group, a global retail consulting firm, was commissioned by MODASolutions to conduct the survey and analyze the implications for the industry.
MODASolutions announces new industry statistics revealing that 50 percent of consumers who shop online also bank online and spend 117 percent more than the average online shopper
The survey revealed a compelling connection between heavy eCommerce shoppers and online banking users; heavy online banking users spend an additional 34 percent more when shopping online. This dramatic increase in eCommerce spending validates MODASolutions' online banking payment solution, eBillme™, as a key driver to increasing sales and customer acquisition for merchants.
Further survey results revealed:
80 percent of respondents indicated that the availability of "a safe and secure online payment option" was the most important factor when shopping online.
76 percent expressed interest in alternative payment methods that allow them to pay for eCommerce purchases through their online bank accounts.
The total eCommerce average amount spent among those engaged in online banking in the previous six months was $1,060, approximately double the industry norms ($488) from a previous national survey conducted by J.C. Williams Group. In addition, heavy bill payers spent an additional 34 percent more over the same time period versus the study average ($1,423).
Finally, 50 percent of the U.S. online buyer population made at least one online bill payment in the previous six months at their primary financial institution or bill payment portal.
"Consumers are realizing the benefits of online banking—security, convenience, and speed—and are discovering that these benefits can also apply to eCommerce if retailers offer online banking payment alternatives," says Jim Okamura, Senior Partner of J.C. Williams Group, which conducted the survey in March. "Consumers are now comfortable and tech savvy enough to shop online in addition to paying bills and transferring funds. And as more consumers regularly engage in both online banking and eCommerce, we expect this intersection to continue growing with profitable results."
"The survey reveals two important insights into consumers' eCommerce habits," says Marwan Forzley, President and CEO of MODASolutions. "Online bill payers are more likely to be online shoppers, making them a lucrative target for retailers. But while these consumers trust their financial institutions, they're still concerned about their financial security during online retail. This means alternative payment options such as eBillme—which lets consumers pay using their bank accounts—play into an established trust that appeals to consumers. For retailers, offering alternative payment options can attract more customers to their sites, increase average spending, and convert more Web site visitors into sales."
Merchants can realize the benefits of eBillme and this lucrative consumer segment immediately after integration. MODASolutions continually conducts its own consumer surveys and research, and has uncovered results consistent with those of the J.C. Williams Group Study based on empirical data.
About the Study:
The study surveyed 1,077 U.S. eCommerce buyers over 20 years old. The sample is representative of the U.S. online buyer population in apparel, home furnishings, consumer electronics, and computer hardware and software categories. Seventy seven percent of respondents were 25 to 54 years old, and two-thirds of the respondents reported household incomes over $49,999.