Report: Consumers’ Comfort with Debit Online Growing

Oct. 18, 2012

In its second annual Consumer Debit Payment Choice Research Study, payments processor TSYS took a look at what payment methods consumers feel most comfortable using online. According to the research, 71 percent of consumers feel most secure using gift cards or prepaid cards online. Consumers continue to feel increasingly comfortable using debit online. Two-thirds of consumers expressed comfort using debit cards to pay at websites—the same that said they felt safe using credit cards. Only 56 percent felt comfortable using PayPal. The report said consumers think security is paramount when paying online, but they don’t use methods that might provide safer transactions than they currently enjoy.

“Offline benefits like discounts also appear to influence online payment behavior, but security remains a key consideration in choice of payment for card-not-present transactions,” the authors wrote. “However, concerns about security and merchant compromises don’t appear to translate into consumers using payment forms such as one-time-use account numbers that help to mitigate risk.”

The study also looked at how consumers want to use mobile phones. Receiving offers while in the store was the most popular response (38 percent of consumers). The ability to store and use loyalty cards and paying for purchases using cards linked to a mobile wallet was of interest to 32 percent of consumers.