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BizReport : Ecommerce archives : December 13, 2011

Survey finds etailers leaving billions on revenue table

Shoppers would spend more if paying for goods was simpler. That is the takeaway from a new report from Javelin Strategy and Research and Payment One. According to the report online shoppers, specifically, might spend $100 billion more if payment options were made more secure and simpler.

by Kristina Knight

Researchers found four of five online shoppers would spend more if checkout were made more secure and easy to navigate. One of the payment options that might make shoppers more secure with online checkouts? Direct carrier-billed options. The research finds shoppers believed this option was 'more secure' (4 to 1 margin) than using debit or credit cards for online purchases.

"[Consumers] are concerned about the use of credit cards online and related issues of privacy, fraud, security and convenience," said Phil Blank, Managing Director at Javelin Strategy & Research. "If digital merchants simply offered consumers an alternative way to pay, such as mobile carrier based payments, 79% of decisive consumers indicated they would spend more, driving significant new incremental revenue from subscriptions, transactions and purchases. With an estimated $110 billion in new revenue for digital merchants being left on the table each year in the U.S. alone, this 'commerce gap' represents a massive untapped opportunity."

Other interesting findings include:

• 6 in 10 online shoppers said they were 'more likely' to buy from online vendors who didn't require credit card payments
• 54% fear their personal information will be sold to other merchants if credit cards are used
• 51% fear credit card information will be intercepted or that their personal information could be accessed through the merchant's system
• 41% fear merchants will 'misuse' their credit card information

In this report, consumers seemed to say mobile payments - those in which items are billed to a mobile account and financial information is not exchanged - were more secure than traditional payment options. Of those surveyed 95% have mobile phones but only about one-third have used mobile devices to pay for a transaction.

Javelin Strategy and Research conducted the survey on behalf of PaymentOne.

Tags: ecommerce, Javelin Strategy and Research, mcommerce, mobile payments, online payments, PaymentOne

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