Online shoppers prefer Paypal to credit cards

| December 7, 2011
Online shoppers prefer Paypal to credit cards

Paypal is now more popular than credit cards as the preferred method of payment for online shopping according to a global survey by financial advisory firm KPMG.

According to KPMG’s “The Converged Lifestyle” report, consumers worldwide are rapidly adopting new technologies and Paypal is reaping much of the benefit.

The study looked at the online shopping habits of around 10,000 adults from 31 countries and found that in Europe and the Middle East, Paypal has overtaken credit cards as the preferred method of online payment.

The report found that UK shoppers were less keen on using mobile banking than shoppers in other parts of the world.

Just 27 per cent of UK shoppers had used mobile banking in the past six months compared with 52 per cent of shoppers globally.

Concern over mobile banking security seems to be a key issue for UK shoppers, with 66 per cent saying they feared that their credit card details would be intercepted and stolen and 62 per cent concerned that intruders would access personal information.

Tudor Aw, KPMG’s European head of technology said the report showed that: “consumers’ concerns over privacy and data security have increased over the last few years and companies across all sectors need to take this concern seriously.

“Whether its retailers or banks, consumers want transparency as to what companies do about data security and they want third parties to certify this security.”

Although mobile banking hasn’t been fully embraced by UK shoppers, they are using mobile devices to enrich their shopping experience in other ways.

When shopping at retail outlets, 45 per cent of UK shoppers reported using smartphones and tablets to find the nearest store, while 32 per cent used mobile devices to research products and services and 30 per cent to find online coupons.

Payment processor Sage Pay reported a 17 per cent increase in online shopping on 5 December 2011, compared with the same time last year.

The average amount spent also increased, by £3 to £91.

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