Two thirds (66%) of UK consumers say that fraud "inevitable" when shopping online, up from 52% last year, says new research.
In fact, 33% of the polled UK shoppers say that they have experienced a payment fraud in the past year. That’s up by 6% from last year, suggest the findings from Lost in transactions 2018 research conducted by Paysafe.
The report goes on to say that when shopping online 61% of the surveyed UK consumers say that they used digital wallets in the past month, 34% have used a credit card and 57% a debit card. Whereas, 51% of the same cohort say that they have started using in-app payments as the popularity of services as Uber and Deliveroo altered the traditional ecommerce payments process by retaining customers’ data for seamless app experience. Also, 79% say that they now prefer to shop on a website that already has their payment information stored, which highlights that UK clientele places a premium on convenience.
But, the data shows that these attitudes don’t translate to the realm of ’frictionless payment,’ with 52% of the questioned UK shoppers cite fraud as the most significant failure barrier to using these services, 43% express concerns around the use of data and 67% say that voice assisted devices are not secure.
“UK consumers’ attitudes towards fraud in payments are largely defined by the medium of the transaction. In the UK, we have now reached a level of maturity in online retail – most websites are optimised, the checkout process is increasingly simple, and delivery is getting quicker. In turn, more consumers are telling us they are accepting a level of fraud for this convenience," says Oscar Nieboer, chief marketing officer, Paysafe Group.
"What is notable, though, is the same rules do not yet apply to biometrics, such as voice-activated payments. The idea of a consumer’s unique biometric data being defrauded is uncomfortable, and this manifests as emerging technology like voice not yet attracting mainstream usage for payments.”
Retailers must eliminate consumers fears by listening to their preferences as 67% of the polled UK shoppers say that they want an online payment where their financial data isn’t stored. Whereas, 18% of the US and 16% of Canadians say that they would like to pay with prepaid cards.
Oscar Nieboer concludes “What the diversity of payment types in other regions shows is we shouldn’t simply accept fraud. We shouldn’t have to choose between risk and convenience, and in a time of hyper-awareness around data security and privacy, merchants must place a premium on securing customers’ data now more than ever."
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