LONDON–(BUSINESS WIRE)–More than half (59%) of consumers are more worried about becoming victims of fraud today than they were in 2021. This is according to a study* published by the main specialized payment platform, paysafe (NYSE: PSFE) which indicates that consumers in North America, Latin America and Europe are prioritizing security over convenience when shopping online as the impact of rising inflation and energy prices continue to fuel financial concerns.
The study found that 62% of people are so concerned about fraud that they think it’s just an unavoidable risk of shopping online, a major jump from 45% who said the same. thing in 2021. These fears made 58% feel uncomfortable entering. their financial data online to pay for goods and services, another jump from 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 about fraud have put security under the projectors. More than 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 coming around to passwords as a familiar means of security. Almost half (45%) said they trust passwords more than biometric authentication methods (an increase of 8% from 2021). That said, trust in biometric authentication is also growing with 58% of them agreeing that biometric authentication makes online payments more secure, a notable increase from 45% last year. With fraud issues clearly at the top of consumers’ agendas, merchants that offer multi-factor authentication methods can inspire consumer confidence in the security of their transactions.
Despite all these concerns, a majority (53%) of consumers think payments are safer than they were a year ago. And 44% of respondents are satisfied with the current balance between security and convenience, in stark contrast to 2021, when only 26% were satisfied.
But how much trust merchants have depends on the amount at stake. 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, trust is low across the board, suggesting merchants still have work to do to highlight the benefits of alternative payment and security methods within the industry .
Chirag Patel, President of Digital Wallets at Paysafe, said: “It has been well observed that in times of financial crisis, fraud rates increase. It happened at 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 of the world of online payments. Respecting customer concerns is paramount, but finding the right balance for practical day-to-day use remains key to building customer loyalty. Offering a variety of alternative payment methods and security options will go a long way to easing consumer fears and protecting financial details, while protecting the consumer experience.
Note for editors
**Unless otherwise stated, all date points for increase/decrease in use of payment methods are for respondents whose habits have changed due to the cost of living crisis.
*The research was conducted on behalf of Paysafe by Sapio Research in April 2022. Some 11,000 consumers from the US, UK, Canada, Germany, Austria, Bulgaria, Italy, from Peru, Chile and Brazil were surveyed to explore the evolution of consumer payment preferences and behaviors.
About Paysafe Limited
Paysafe Limited (“Paysafe”) (NYSE: PSFE) (PSFE.WS) is a leading specialist payment platform. Its main objective is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet and online payment solutions. With over 20 years of online payment experience, an annualized transaction volume of over US$120 billion in 2021, and approximately 3,500 employees located in more than 10 countries, Paysafe connects businesses and consumers across 100 payment types in over 40 currencies worldwide. Delivered through an integrated platform, Paysafe solutions are geared towards mobile-initiated transactions, real-time analytics and convergence between physical and online payments. Further information is available at paysafe.com.