Report: Credit Still King Online, PayPal Making Inroads
Oct. 21, 2013
While debit continues to be the overall preferred payment type for nearly half of U.S. consumers, credit still dominates in the online world, according to a new report from Columbus, Ga.-based payments processor TSYS. The 2013 Consumer Payment Choice Study found, for online payments, the percentage of consumers likely to choose PayPal for online transactions matched the share that prefers debit—22 percent.
The study also found 48 percent of consumers used a credit card they already had on file with their favorite online retailer to make a purchase in the past year and more than a third opened an account with PayPal. Thirty-two percent said they made a purchase with a debit card they had on file with an online retailer.
In its analysis of the card-not-present world, TSYS said mobile may emerge as an important fraud mitigation tool as it will drive innovations in authentication. To download a copy of the report, click here .