Online merchants are losing business by not offering a wide enough choice of internet payment methods. That is according to a survey commissioned by ClickandBuy, an internet payment system. The survey of 2000 online British adults, which was carried out by survey firm YouGov, found that half (50 per cent) of those who regularly shop online said that if their preferred payment method is not available, they will cancel the purchase.
And over one third (40 per cent) of adults surveyed said that they would feel more comfortable purchasing from a retailer who offers a wide range of payment methods than a retailer who only offers one payment option.
Merchants risk missing out on business at a time when e-commerce is expected to grow with one third (36 per cent) of survey participants predicting that they will shop more online than on the high street in 2009 than in 2008. In fact, 45 per cent of those questioned agreed that they would be spending more time shopping online for cheaper versions of things they used to buy on the high street during the recession.
While consumers are set to increase their online shopping habits, the financial security risks associated with e-commerce continue to be a concern. Some 83 per cent of all adults questioned believed that the number of people trying to commit fraud on the internet is increasing as more people around the world use the web. Only one third disagreed with the statement ‘I feel no safer when buying online now than I did five years ago’ and that less than half (42 per cent) of regular online shoppers are totally confident that their credit card details are secure when entered online.
Of the 32 per cent of adults surveyed who do not regularly shop online, over half (54 per cent) said that this is because they are concerned of the security risks from entering credit card details online.
Commenting on the findings
Nick Drew, director, e-commerce operations, ClickandBuy, said, "The message to merchants is clear – consumers are prepared to shop more online, but they need to feel completely comfortable and secure in doing so. Competition is rife in the online space and if shoppers aren’t being offered the right service and payment systems to meet their needs, they will take their purchase elsewhere, leaving merchants to potentially miss out on millions of pounds of business. Yes, e-commerce is set to grow, but only for those merchants who appreciate that different consumers have different preferences when it comes to making online transactions. The logic is simple – by offering a wider range of payment systems, the more customers a site is likely to appeal to."
Notes
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,030 adults. Fieldwork was done between April 3 and 6, 2009. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18-plus)
About ClickandBuy
More than 14,000 providers of goods and services use ClickandBuy for settling charges for e-commerce, online entertainment and paid content, for example, Apple iTunes, Electronic Arts (EA), T-Online Gamesload, Softwareload und Musicload, AOL, BT, msn, Orange, Tiscali, Nero, SanDisk, Meetic, RTL, Playboy. The internet payment system, which was founded by Norbert Stangl in 1999, is operated by ClickandBuy International Ltd. As an e-wallet solution ClickandBuy offers its customer 46 methods of funding in 30 countries.
