Amid the growing trend of digital shopping in the US, security concerns have forced nearly four-in-ten (37%) of consumers to avoid making online purchases as they feel that their payment would not be secure, according to a survey conducted by American Express (Amex).
As per the survey ‘The 2017 American Express Digital Payments Survey’, consumers are doing more of their shopping online and but digital security scares them.
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The survey, in which 1,020 consumers and 401 merchants across the US participated, highlighted that nine-in-ten (90%) US consumers said they have made at least one online purchase in the past one year, and more than seven-in-ten (73%) have made three or more online purchases during the same period.
Nearly half of online shoppers (47%) said that they have increased the frequency of their online purchases in the past 12 months.
Over 70% of online shoppers have used digital-payment services, such as mobile wallets, one-click checkout buttons and P2P payment apps. And four-in-ten (41%) said that they always or sometimes use such digital solutions when they pay.
In order to allay consumers’ fear, merchants are prioritising security investments. In 2016, merchants spent 31% of their IT budgets on payment security, according to the survey.
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By GlobalDataFurthermore, more than half of merchants (54%) responded that their budget for payment security will increase over the next year.
More than 53% of merchants take the simple step of requiring customers to enter the CVV code found on credit cards for online purchases.
According to the study, 71% of merchants said that the proportion of their annual sales generated through online and mobile channels have increased over the previous year.
American Express vice president of industry engagement, product and marketing, global network business, Mike Matan, said: “Digital innovation is enabling consumers to buy from merchants when and where it’s most convenient for them.
“But the results of our survey show that for merchants to capitalize on consumers’ continued shift to online and mobile commerce, they need to provide their customers with the confidence that their information is secure.”
