Consumers’ Online Payment Security Fears Grow Following ‘Cost-of-Living Crisis’, Says Paysafe Research
September 01 2022 - 04:00AM
Business Wire
62% of global consumers increasingly see fraud
as an inevitable risk of online shopping
Over half (59%) of consumers are more concerned about becoming a
victim of fraud now than they were in 2021. That’s according to
research* released by leading specialised payments platform,
Paysafe (NYSE: PSFE) which indicates that consumers across North
America, Latin America and Europe are prioritising security over
convenience when making online purchases, as the impact of rising
inflation and energy prices continues to fuel financial
worries.
The research revealed that 62% of people are so concerned about
fraud they feel it is simply an inevitable risk of online shopping,
a major jump from the 45% who said the same in 2021. These fears
have caused 58% to not feel comfortable entering their financial
data online to pay for goods and services, another jump over the
44% who felt this way in 2021.
For years the payments industry has struggled to balance the
competing needs of security and convenience for customer
satisfaction, and having a streamlined customer experience remains
essential, but growing concerns around fraud have put security into
the spotlight. Over twice as many consumers chose security (44%)
over convenience (21%) as the most important factor when paying for
an online purchase.
Although security experts often discuss the limitations of
password protection, consumers are now rallying behind the password
as a familiar means of security. Nearly half (45%) said they trust
passwords more than biometric authentication methods (an 8% uptick
over 2021). That said, confidence in biometric authentication is
also growing with 58% agreeing biometric authentication makes
online payments more secure, a noticeable increase against 45% last
year. With fraud concerns clearly at the top of the agenda for
consumers, merchants that offer multi-factor authentication methods
can instill confidence in consumers that their transactions are
secure.
Despite all these concerns, a majority (53%) of consumers think
payments are more secure than they were a year ago. And 44% of
respondents are satisfied with the current balance between security
and convenience, which is in stark contrast to 2021, when only 26%
were satisfied.
But the amount of trust merchants enjoy is dependent on the
amount involved. While 69% currently say they feel comfortable
buying from a peer-to-peer platform and 59% from an online retailer
like Amazon, this is only the case if the item costs no more than
£150. For amounts over £1,500, confidence is low across the board,
suggesting there is still work to do for merchants in highlighting
the benefits of alternative payment and security methods within the
industry.
Chirag Patel, President Digital Wallets at Paysafe, said:
“It’s been well-observed that during times of financial crisis,
fraud rates rise. It happened during the height of the pandemic,
and now, as countries around the world face varying degrees of
economic hardship, consumers are right to be alert to the dangers
in the online payments world. Respecting customers’ concerns is
paramount, however striking the right balance for convenient
everyday use remains critical to retain customers. Offering a
variety of alternative payment methods and security options will do
much to assuage consumer fears and keep financial details safe,
while also protecting the consumer experience.”
###
Note for editors **Unless otherwise specified all date
points about increased/decreased payment method usage relate to
respondents whose habits have changed due to the cost-of-living
crisis.
About the research *The research was conducted on behalf
of Paysafe by Sapio Research in April 2022. Some 11,000 consumers
from the U.S., U.K., Canada, Germany, Austria, Bulgaria, Italy,
Peru, Chile and Brazil, were surveyed to explore changing consumer
payment preferences and behaviours.
About Paysafe Limited Paysafe Limited (“Paysafe”) (NYSE:
PSFE) (PSFE.WS) is a leading specialised payments platform. Its
core purpose is to enable businesses and consumers to connect and
transact seamlessly through industry-leading capabilities in
payment processing, digital wallet, and online cash solutions. With
over 20 years of online payment experience, an annualised
transactional volume of over US $120 billion in 2021, and
approximately 3,500 employees located in 10+ countries, Paysafe
connects businesses and consumers across 100 payment types in over
40 currencies around the world. Delivered through an integrated
platform, Paysafe solutions are geared toward mobile-initiated
transactions, real-time analytics and the convergence between
brick-and-mortar and online payments. Further information is
available at www.paysafe.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220831005571/en/
Anna Birdsall-Strong, VP Communications, Europe, Paysafe
anna.strong@paysafe.com Phone: +442038908975
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