Report: Consumers Seeking Safer Online Alternative, Direct-Carrier Billing Tops Alternatives
Dec. 15, 2011
Eighty percent of consumers would spend more online if offered an easier and more secure way to pay, according to a new survey from Javelin Strategy & Research and PaymentOne. The survey also found that by a margin of almost 4 to 1, consumers believe direct carrier-billed mobile payments are more secure than using credit and debit cards for online digital 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 Phil Blank, managing director at Javelin Strategy & Research. “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, driving significant new incremental revenue from subscriptions, transactions and purchases. With an estimated $110 billion in new revenue for digital merchants being left on the table each year in the U.S. alone, this ‘commerce gap’ represents a massive untapped opportunity.” The survey also found that nearly 60 percent of consumers are more likely to visit and buy from sites that offer “no-credit-card-required” payment options. Of the alternatives, consumers identified the wireless bill as the preferred method (58 percent), followed by the landline/broadband bill (22 percent) as the safest and most secure alternatives for digital purchases. The survey found strong interest for safer payment methods across all socio-economic strata, but the interest is greatest within households earning greater than $75,000 per year.