More Payment Methods - More Sales
More Payment Methods - More Sales
by Dr Tony Berg
A Gartner survey in August 2007 found that concern about ID theft has affected the shopping habits of more than half of online users.
Among those consumers, 13 percent said they have stopped shopping online and 68 percent said they were more cautious about where they purchase goods online.
There are an increasing number of people not shopping online because of a fear about ID theft and having their credit card information stolen.
It is the lesser-known small and mid-size retailers who are most likely to lose business from consumers concerned about online payment security risks.
Avivah Litan, a vice president and analyst at research firm Gartner says: "The promise of the Internet was that it would level the playing field, but it hasn't turn out that way."
Google Checkout and PayPal offer alternative payment options that give another layer of consumer security. A well known and respected brand collects and manages financial transactions rather than giving personal information to retailers.
Whilst this reporting comes from the USA, the trend is clearly one that needs to be considered here in the UK as well.
According to CyberSource, offering multiple payment options raises consumer confidence and helps overcome any reluctance to close an online transaction. In the USA, e-tailers offering three or more payment options reported sales increased by up to 14%.
In an increasingly competitive e-commerce environment offering multiple checkout options would seem to be a simple and cost effective way to keep ahead.
Dr Tony Berg
Managing Director - Realnet Ltd
tonyberg@realnet.co.uk
Article originally published in Cambridge Network Connection magazine Issue 38, 05/02/2008.
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