Online Payments Becoming Mainstream, Yet Consumers Remain Hesitant

  • As smartphone and tablet adoption grows, so do online payments, but they still remain a small portion of all transactions — mostly because of fear.
  • A 2012 survey from online authentication firm Entersekt found that only 32 percent of men are inclined to carry out online transactions on their mobile devices. For women, that number was even less, just 25 percent.
  • “In today’s world, consumers are not only aware that fraud exists, but many have either experienced it personally, or know someone that has,” writes Entersekt’s CEO Schalk Nolte. “This criminality impacts all of us through increased insurance, increased prices, and increased hassle. However, what I think is interesting and actually quite comforting, is that people are happy to be inconvenienced if it means they’re better protected.”
  • The development of new encryption technologies such as SSL (Secure Socket Layer) will help to increase security without delaying transactions.
  • According to a report from Ecommerce Europe, the expansion of smartphones will make 12.5 of all e-commerce transactions mobile by the end of 2013.
  • “It needs to be stressed, however, that such prospects will not materialize unless online payment services providers keep constant track of market trends, consumer demands and competition in this challenging market environment,” Ulric Jerome, with Ecommerce Europe, said in the report.
  • While both increased security and mobile devices will play a big part in making online payments mainstream, social influence will also have a big role. “Consumers are more likely to adopt new methods of currency exchange when they feel that everyone else is doing it too,” reports ReadWrite.
  • “Bottom line: The more people hear and see online payment systems in action, the more they will want to try them for themselves. In the meantime, only the bold are willing to go first.”

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