A recent study between JupiterResearch and Paypal, revealed that consumers value payment security and payment choice more than rewards when making purchases online. The study developed when PayPal partnered with JupiterResearch to analyze how the U.S. population uses payment methods when shopping online. Several tests were done with merchants that sell the same product and at the same price, the end result was that buyers preferred purchasing through the sites which offered the best payment security and payment methods. The study also found security as a determining factor when making a purchase. Two thirds of shoppers feel more secure when they don’t have to enter their financial info… which makes PayPal a huge plus for online shopping.
The study revealed the following consumer preferences when paying online:
– 66% of consumers prefer online stores that offer multiple payment mechanisms.
– 62% of purchasers feel more secure when they do not have to enter credit card information online, even at merchants’ sites that they trust.
– 61% of online shoppers choose sites that offer both credit and debit card payment options.
– 55% of consumers think about payment methods they will use before they click on the checkout button.
– 48% of all online adult shoppers prefer the convenience of alternative payment methods.
– One third of online shoppers want to avoid filling out name, address and credit card details.
– One in eight consumers thinks about how he or she will pay even before deciding what to buy.
Senior Director of PayPal also stated, “When merchants offer PayPal on their sites, they allow 141 million customers around the world to shop with peace of mind because they don’t have to share their financial information online.”
I’ve had a few merchant accounts in the past for a few web sites I ran, and merchant accounts are not that fun to manage. With the new sites I have in the works, this time around I will only use PayPal processing and see how it compares. The benefit of using PayPal not only increases your customer’s feeling of security, but also takes out the stress of managing your reports and cc transactions. I will also be running my new online stores through Yahoo Business, which is an additional level of security and trust for my customers. As a store owner or marketer, making your customer feel safe and secure should be top priority.
Not only as an internet marketer, but also as an online shopper, what are your determining factors when buying from a web site? Do you prefer to shop from a brand name like Amazon.com, or would you shop at a less popular online store to save 10% on your order, or receive free shipping (incentives/rewards)?