Mobile Payments More Trusted than Credit Cards

Consumers believe that direct, carrier-billed mobile payments are more secure than using credit and debit cards for online digital purchases by a margin of almost four to one, according to research commissioned by PaymentOne

Consumers have dramatic and growing concerns about the safety and privacy of using credit or debit cards for online transactions. Javelin Strategy & Research conducted the study of consumers’ online and mobile purchasing attitudes, finding that 80 per cent of consumers would spend more online, if offered an easier and more secure way to pay.

Nearly 60 per cent of consumers would be more likely to visit and buy from sites that offer no credit card required methods of payment, according to the survey. Online retailers in the US could add aggregated yearly revenue of $109.8bn (£70.7bn) by including this payment option.

“According to the 2011 Online Payment Poll, consumers are concerned about the use of credit cards online and related issues of privacy, fraud, security and convenience,” says Phil Blank, managing director at Javelin. “If digital merchants simply offered consumers an alternative way to pay, such as mobile carrier based payments, 79 per cent of decisive consumers indicated they would spend more, driving significant new incremental revenue from subscriptions, transactions and purchases. With an estimated $110bn in new revenue for digital merchants being left on the table each year in the US alone, this commerce gap represents a massive untapped opportunity.”

95 per cent of respondents to the survey owned mobile phones, with just 36 per cent having already used them to make a payment.