NYCE Finds Consumers Interested in Secure Online Payments
NYCE Payments Network has published results from a consumer survey finding that "consumers who limit their online shopping say they would make more purchases online if their financial institution offered them a safe payment method." A summary presentation on the survey findings is available online.
The research, conducted by marketing research firm Analytica Inc., surveyed 2,608 consumers for their attitudes about shopping online and their reasons for choosing the payment methods they use. The findings indicated that consumers remain concerned about the security of their personal information when shopping online:
- Of respondents who had never purchased on the Internet, 43.5 percent gave security concerns as the reason.
- Among those who rarely shopped online, 26.4 percent cited security as the reason they did not do so more often. Security was the second most commonly cited reason, behind a preference for the in-store shopping experience.
Market exists for financial institution payment offering
The NYCE study asked whether respondents would be interested in trying a secure payment method offered by their financial institution. Even those who rarely or never shop online now indicated interest in such a solution:
- Eighteen percent of those who had never purchased anything online indicated they would likely try online shopping using a secure payment method offered by their financial institution.
- Among those who rarely shopped online, 27.6 percent indicated they would likely make more purchases using such a method.
- Nearly half (49.9 percent) of the frequent Internet purchasers who were reached for the survey online indicated they would consider replacing their current method with one offered by their bank or credit union, as long as they felt it was safe and secure.
“We have found that consumers are not necessarily loyal to the online payment options available to them today,” said Steve Rathgaber, president, NYCE. “This is good news for financial institutions that would like to keep consumers’ demand deposit accounts central to their payment relationships. Offering an online payment method gives institutions the potential not only to generate new revenue by encouraging consumers to make more purchases, but also to solidify their relationships with the people they serve.”
In 2008, NYCE introduced SafeDebitTM, a secure Internet purchase solution. The SafeDebit solution enables consumers to pay for Internet purchases directly from their deposit accounts without disclosing their debit card information online. The system validates shoppers through their online banking credentials, and generates a pseudo card number for one-time use on a merchant’s site.
Survey, Smurvey!
Of course when you ask people, "are you concerned about security?", they are going to say yes. But, their behavior is what tells the real story. And it is all about convenience. As long as consumers have little or no real risk due to the various gov't regs and association $0 liability guarantees, they will do little to nothing to enhance security that involves extra clicks, pre-registration, etc... Verified By Visa/MasterCard Secure Code and its lack of adoption was one (of many) examples that proved that.
Posted by: Steve Klebe | July 02, 2009 at 09:16 AM