Report: U.S. Online Shoppers Still Prefer Credit, PayPal Loses Ground
Oct. 27, 2014
Credit cards remain the most popular way for U.S. consumers to pay online, according to the most recent edition of a payments benchmarking report from payments processor TSYS. Columbus, Ga.-based TSYS, in its fourth annual Consumer Payment Study, found nearly half (48 percent) of those polled preferred to use credit cards to make online purchases, up from 41 percent last year. Thirty percent expressed a preference for debit, also up from last year when only 22 percent said they chose debit cards for online payments. PayPal, which last year was tied with debit, was only chosen as the preferred online payment method by 12 percent of U.S. consumers this year.
The survey also delved into consumer awareness of certain payment security measures, noting more than half have never heard of EMV or "Chip" cards (52 percent) and more than 90 percent had never heard of tokenization.
"Although industry participants understand tokenization and how it will help to reduce payment risk, our results showed that not as many consumers are familiar with tokenization and its advantages," the report said. "Only 8 percent of respondents indicated they had heard of tokenization, and 16 percent said they would be willing to take the steps necessary to request a token. This number is likely to increase as the technology goes mainstream and consumers better understand how tokenization will protect their account information. We believe that new features that increase the level of security and consumer protection will continue to gain attention."