Shoppers Willing To Spend $100 More On Mobile Commerce If Online Security Improve
Mobile marketing has grown over the last twelve months with more retailers and businesses. While they’ve began to embrace the medium, consumers are less than enthused about it, mainly due to a lack of familiarity and concerns with online fraud.
Yet a survey conducted by PaymentOne entitled ‘Why Consumers Don’t Pay: Opportunities for Digital Commerce’ has found that if consumers felt that online shopping was easier and had more secure alternatives to using credit or debit cards, more than half would spend at least $100 more on goods either online or via smart phone.
One of the problems that businesses face with regards to consumers is the issue of purchase abandonment. Three out of five people surveyed have cancelled an online payment once they were asked to enter payment information, citing online security fears as the biggest reason.
When asked what benefits would cause them to consider using a new form of payment online, 60 per cent of people said that greater protection from fraud and other misuse as well as the ability to keep their identity private would convince them to pay online.
Security, privacy and convenience of purchasing were important factors to convince smartphone users to purchase goods through this medium,stating that an attempt to change consumers perceptions of the types and frequencies of online fraud as vital in improving their experience.
Because of the above reasons, there is also a reluctance to purchase goods through credit or debit card, many users asking for an alternative method with 78 per cent preferring to pay through either phone or broadband billing (56 per cent choosing wireless phone bill as a different option). The survey also found that digital purchases were more likely when there was an option to pay without a credit card. This was more popular with younger people especially those within the age group 25 – 34 (67 per cent).
The survey was conducted by Javelin Strategy & Research and was carried out during September 2011. They created an online survey which questioned around 2,000 U.S. consumers over the age of 18. The full report can be found here.