Cards winning over online shoppers
BPay, Visa and MasterCard seem to be winning the war for the hearts and minds of online shoppers with PayPal and direct deposit losing market share in 2008. More than 800,000 Australians shopped online for the first time in 2008. The vast majority of those new online shoppers used their scheme cards rather than PayPal or direct bank deposit.
PayPal seems to have lost market share in 2008, despite signing up some major retailers such as Myer and increasing its buyer protection program to $20,000 (for eligible purchases made on eBay.com.au).
The active online shopping population was 7,301,000 consumers in the December quarter, up twelve per cent from 6,485,160 one year ago according to Nielsen Online. More than ninety per cent of online shoppers have used their credit card to pay for purchases, up from 84 per cent one year ago. 51 per cent of online shoppers report that their credit card is their preferred method of paying for goods and services online. Twenty five per cent of shoppers say PayPal is their preferred payment vehicle.
Direct deposit payments by shoppers are down from 57 per cent last year to 38 per cent this year. Just six per cent of shoppers say direct deposit is their preferred payment method and three per cent nominate direct debit.
BPay is now preferred by eleven per cent of those people who have ever made an online purchase. Forty-six per cent have used BPay for online purchases.Cash on delivery was up from ten per cent last year to twelve per cent this year.
Source: The Sheet