PayPal has toppled credit cards as consumer’s favourite online payment method.
New research from marketing services provider, Salmat, found that digital options are on the rise with more consumers opting to pay with PayPal than credit cards. Afterpay is also on the up with more Australians choosing the ‘buy now, pay later’ service, with one in 10 regularly using it. Also, over one fifth of shoppers were interested in payment using a mobile phone, and 11% were keen on payment using a wearable device.
Salmat head of digital marketing, Karen Lewis, said these insights indicate that people want more convenient options to make purchases. “While financial institutions have attempted to stay ahead of the curve, online payment services have effectively integrated themselves into a modern way of online shopping. This has ensured their continued rise to dominance in the retail environment,” she said.
And despite experts predicting that Australia could be cashless in three years, the research found that cash is still the dominant method for paying. “However, 40% of respondents use other methods such as PayPal, Afterpay and credit and debit cards and while this isn’t a majority, it certainly signifies a tipping point in how consumers are choosing to pay.” Lewis said.
The research also found that if retailers don’t have the payment options a customer prefers, close to a third will walk away from the purchase and go elsewhere.
Privacy still raises concerns despite more consumers embracing different payment options over half were concerned for the safety and security of personal data and payment information and the possibility of fraud.
“Brands need to understand the importance of ensuring customers feel comfortable using these payment options, by highlighting their dedication to data security and integrity,” Lewis said, adding that while cash transactions never had personal details attached to them, new online payment methods can open consumers up to a wide range of attacks.
This article was republished with permission from Appliance Retailer.