- 98 per cent of shoppers check for some kind of security before paying
- Just three per cent say they would trust a small online business
- Ease-of-use lulls consumers into false sense of security - 79 per cent ‘trust' sites that have clear and easy payment instructions
British consumers are highly vigilant online shoppers, a survey published today by PayPoint.net (www.paypoint.net) reveals. A whopping 98 per cent of us do at least one security check on websites, and over 90 per cent look at three or more security features, before clicking ‘pay'. However, the survey also indicates that almost four fifths of people would trust a site that was easy to use - regardless of its security features.
With internet fraud reaching over £290 million in 2007 (source: APACS), consumers have become increasingly vigilant over website security. According to the PayPoint.net survey, the most popular checks are:
- Padlock icon in the web browser (88 per cent)
- Presence of UK contact address and phone number (85 per cent)
- Clear refund and returns policy (85 per cent)
- Logos of reputable payment providers, e.g. Verified by Visa (82 per cent)
- Customer testimonials (54 per cent)
- IMRG's Internet Shopping Is Safe logo (50 per cent)
In spite of this heightened security awareness, a worrying proportion of respondents (69 per cent) admitted they could be won over by a well-designed site. The PayPoint.net survey indicates that fraudsters could put a large number of consumers off their guard with a simple, easy-to-use site with clear instructions for payment, (79 per cent).
The survey also shows that consumers are highly conservative when shopping online, overwhelmingly shunning small online businesses in favour of bigger brands (97 per cent). It suggests that more people would turn to small businesses if clearer guarantees of the security of their payment were visible.
The survey supports the launch of PayPoint.net, a ‘bank-independent' online payments provider, established to level the playing field between small online businesses and blue chip brands. With online retail expected to beat the credit crunch and grow from around 5 per cent of total retail sales today to over 13 per cent by 2012 (source: Verdict Research), the survey suggests that improving payment security could actually lighten the impact of the slowdown, and protect jobs.
Alessandro Hatami, managing director of PayPoint.net, says: "We have launched PayPoint.net to bring the advanced levels of security and data protection expected by blue-chips within easy reach of smaller businesses, so all can offer the same rigorous level of security that their customers now expect. Our promise to consumers is, no matter if you are shopping with a major online retainer or a small online business, if you see the yellow PayPoint shield, you can be sure your card details are safe."
James Roper, CEO, Interactive Retail and Marketing Group (IMRG), adds: "It is surprising more people don't gravitate towards smaller businesses, given the very advanced levels of security awareness uncovered by the survey. The paradox is that smaller companies' security may well be better than that of their much larger rivals. We urge consumers to remain vigilant, whilst taking advantage of the better service, wider choice and lower prices which smaller online businesses can offer."
PayPoint.net was formed following the acquisition of leading online payment providers SECPay and Metacharge. It supports the latest card security standards, such as Verified by Visa and Mastercard SecureCode, and boasts powerful fraud management tools, which together protect consumers' card data and ensure they cannot be misused.
Notes to editors
About the research
PayPoint commissioned independent market research company Dynamic Markets to interview 2,000 UK adults as a part of a telephone omnibus survey. The sample of screened to survey online shoppers, resulting in a sample of 945 interviews. Fieldwork took place between 13th-19th June 2008. The sample was them demographically weighted to make it representative of the UK population.
Photography of Alessandro Hatami, managing director of PayPoint.net, is available on request.
About PayPoint.net
PayPoint.net is a leading bank-independent online payment service provider which operates one of the most comprehensive, secure and reliable payment platforms in the UK. The product of the merger of specialist providers Metacharge and SECPay, PayPoint.net offers organisations of every size a fast start to trading online, supported by powerful fraud management capabilities and leading-edge security features.
PayPoint.net is a wholly owned subsidiary of PayPoint plc, the leading cash and internet payments company in the UK, with operations in Ireland and Romania. The PayPoint branded retail network numbers over 19,800 terminals located in local shops and is used primarily for the cash payment of bills and services, plus prepayments for mobile telephones and energy meters. PayPoint handles in excess of £7 billion from over 503 million transactions annually for more than 5,000 clients and merchants.
-ENDS-
For further information please contact:
Tom Nutt / Blake Scotland
The Communication Group
020 7630 1411 /
07775 686706 / 07823 886813
paypoint@thecommunicationgroup.co.uk
