Survey highlights consumers’ concerns over online shopping
One fifth of shoppers in the UK who have made a purchase online have been a victim of online fraud, according to a recent YouGov survey commissioned by eWise.
The research also showed that 88% of online shoppers have either been the victim of online fraud or are worried that this is something that will happen to them in the future.
More than two thirds (69%) agreed with the statement: ‘I am concerned about security when paying for goods/services online’. And over half (54%) confirmed that they have abandoned an online purchase in the last year, due to fears relating to the security of their details.
When online shoppers were asked if they agreed that they are concerned about security around making online purchases, the proportion which stated they are increased with age. Respondents were asked to pick the two payment methods they feel are most secure when making online purchases. Only 20% made debit cards one of their top two choices. Commenting on this finding, John France, managing director at eWise payo, said: “This is a worrying sign, it seems banks and consumers have drifted apart.
“The figures we have highlighted are alarming. In spite of the time and money invested in protecting consumer’s online security, retailers’ websites are still being hacked and fraudsters continue to win the battle.”
Almost two thirds (64%) of online shoppers have abandoned a purchase due to issues relating to speed and difficulty in making a payment. France added: “It seems every stakeholder in the transaction suffers: the consumer abandons the purchase through frustration, the merchant doesn’t process the sale, and the payment isn’t processed by the bank.
“Credit and debit cards were designed for the face-to-face environment, and the additional security measures only slow the payment process.”
The survey found 72% of online shoppers who have online banking access advised that they would feel more secure if their bank provided a payment option that allowed them to pay for goods online directly from their online banking account, without sharing account information with the merchant.
In January 2011, eWise launched eWise payo, the bank inclusive UK Online Banking ePayments (OBeP) solution. The solution enables the consumer to initiate secure and private payments for goods and services or bills online, without having to provide personal financial information to any third parties. To use eWise payo, customers are directed straight to their bank’s website where they will log in using their existing account credentials. Once in their online banking application, consumers select from any account with available funds and confirm the payment.
