PaymentOne Corporation, the Internet's leading Payment Service Provider (PSP), today announced it has surpassed the $1 billion mark for Internet content and service transactions processed using the company's integrated global payment platform.
This significant milestone represents $1 billion of incremental online service and digital content revenues for PaymentOne's clients. Typically, PaymentOne clients realize an increase of 15 to 35 percent or more in customer acquisition rates when deploying PaymentOne's alternative payments strategies and best practices.
Previously, without the benefit of PaymentOne's revenue optimization best practices or alternative payment options, many potential online customers were unreachable or abandoning a site at the point of purchase. Abandonment rates at the point of purchase range from 25 to 90 percent at typical online sites.
Further highlighting the online challenge and opportunity for merchants is a recent survey conducted by Javelin Research, which found that 61 percent of U.S. consumers would be more inclined to make online purchases if easier and more secure payment alternatives were presented.
"Payment is one of the most strategic issues and opportunities facing Internet content merchants today," said James Van Dyke, principal and founder of Javelin Strategy & Research, a leading analyst firm tracking electronic payment trends.
"Consumers often choose whether or not to complete an online transaction based on the ease, convenience and safety of the purchase and payment process. PaymentOne provides a unique portfolio of payment options for merchants to deploy, impacting not only operational functions but also strategically providing access to more online shoppers."
"To date, many online providers have focused primarily on their web infrastructure and service offerings but have not invested heavily to optimize the payment and checkout experience for the consumer," said Joe Lynam, President and CEO, of PaymentOne. "This billion dollar milestone indicates that significant revenue can be captured when a best practice approach is used to understand and address consumers' payment preferences and patterns. We are proud to be pioneering new capabilities and helping our clients capture incremental markets and consumers."
According to the most recent UCLA Internet Report, over 92 percent of consumers are still "somewhat or extremely concerned" about security and identity theft when making transactions online. The Federal Trade Commission also reported that the total value of identity theft losses last year was nearly $48 billion.
To help online merchants address these significant obstacles, PaymentOne not only provides traditional credit card processing, but also sophisticated fraud management tools, global coverage and a unique set of non-credit card alternative payment options on one integrated platform. Non-card payment options include micropayments, prepaid accounts, putting charges on a consumer's phone bill, direct bank debits and offline invoices for offline payment.
For example, with PaymentOne's PhoneBill alternative payment option, consumers are not required to provide any private financial information over the Internet and can simply elect to have charges billed to their regular phone bill. As a result of PaymentOne's advanced validation technology and fraud control systems, there have been no known cases of identity theft fraud reported using PhoneBill, addressing the main consumer concern about shopping online.
PaymentOne clients include leading Internet service providers and portals, online premium service providers and digital content merchants.