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BizReport : Ecommerce archives : July 04, 2007

Offline payment system for online purchases to launch in U.K.

Fear of identity theft and credit card fraud is keeping many U.K. shoppers from purchasing online. A new offline payment system could coax them into using online stores.

by Helen Leggatt

payoffline%20logo.gifNew data released by PayOffline, from market research conducted by Shape-the-Future, demonstrates just how many U.K. shoppers avoid online shopping for fear of identity theft and credit card fraud.

Of the 3,000 people surveyed, 58 percent had previously decided not to buy online due to concerns of security and fraud, and 70 percent of those would have shopped online had there been an offline payment option.

When told of a new offline payment system, PayOffline, that is soon to be introduced in the U.K., the interest from those surveyed was huge with 80 percent asking to be informed when the service was launched.

“PayOffline has mass market appeal; all our extensive research indicates that there is a huge pent up demand from all sections of the U.K. population,” said Steve Berry, Managing Director, PayOffline. “PayOffline will also make Internet prices available to everyone and provide a safe and secure payment option without the risk of fraud or identity theft."

The new service will allow those in the U.K. who have no bank account (c. 4 million) and the one-third of the population who have no credit card, to shop online. It is also an option for those worried about giving out their personal financial information on the Internet and the youth market that may not be eligible to use credit services.

The offline payment system is also an opportunity for online retailers to increase business from existing online shoppers, 65 percent of those surveyed claimed they would shop more online if an offline option was available.

How does PayOffline work? Consumers who opt to pay offline are provided with a 19-digit bar code which can be presented at any one of 17,000 payzones around the country. The purchase is paid for by cash and once the payment is received the merchant is notified and the goods despatched.

Tags: credit card fraud, offline payments, online payments, online shopping, PayOffline

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