PayPal Considered Most Secure Online Payment Method by Consumers
Aug. 16, 2010
U.S. online shoppers consider PayPal a more secure payment option than credit or debit cards, according to a recent study by New York City payments consultancy Auriemma Consulting Group (ACG). The alternative payment’s popularity is also increasing overall, ACG said in its report. PayPal narrowly edged out debit as the second most popular online payment option (37 percent to 36 percent) of the 428 consumers polled by ACG in June. Credit cards continue to be the dominant form of payment online with 70 percent of consumers choosing that method. PayPal’s overall usage is definitely increasing as well. “More than three-quarters of our respondents said they have a PayPal account, a 40 percent increase since our 2008 Cardbeat study, when 55 percent of respondents had one,” said Nancy Stahl, editor of Cardbeat. Stahl also noted that PayPal, which was once a niche service used mainly by eBay users has expanded further into the online merchant world. “It’s not just for eBay anymore,” she said. “Nearly two-thirds of total PayPal transactions were generated through non-eBay activity.” The average purchase amount for PayPal transactions was virtually unchanged from 2008, at just under $60. However, the number of PayPal transactions reported by consumers in the survey doubled, from 10.8 in 2008 to 21.2 in June 2010, raising the average annual spend by about $635.