Consumers would be willing to spend more online if they felt more secure about doing so, concludes a recent study co-conducted by Paymentone and Javelin Strategy & Research. Out of every 5 participants, 4 indicated that they would be much more prone to spend money via the World Wide Web if online retailers provided a safer, more secure way to pay for purchases.
“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,” said the Managing Director at Javelin Strategy & Research Phil Blank, according to Market Watch.
The survey also uncovered the fact that a majority of consumers believe that direct carrier-billed mobile payments is a more secure method of paying for things over the internet as opposed to entering personal payment information from their debit or credit card. By making a payment option available to shoppers that does not require a credit card to checkout, the study estimates that online retailers could anticipate an annual revenue boost of roughly $109.8 billion.
“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,” said Blank as reported by Market Watch. He went on to call the estimated $110 billion in potential new revenue for digital merchants a “massive untapped opportunity.”
Here is a breakdown of respondent`s concerns regarding spending online:
55% are worried about receiving unsolicited junk emails post-transaction; 54% are worried about their personal information being sold to other merchants; 51% are worried that their credit card information will be intercepted by thieves mid-transaction; 51% are worried about unauthorized parties gaining access to their personal information if it is stored by the merchant; 41% are worried that merchants will misuse their credit card information; 38% simply dislike the notion of providing their personal private information to online merchants; 32% worry that their personal financial information could be intercepted by thieves “over the air” if entered in using a phone or other mobile device.