E-commerce adoption up but security concerns linger
JOHANNESBURG – SOUTH African consumers are becoming increasingly comfortable making online purchases but safety and security remain a major factor in the adoption of digital payments and e-commerce.
This is according to a new report released today by Visa, which indicated a growing number of shoppers are going online to buy clothes, book flights and hotels and even pay utility bills as more services move into the digital space.
According to the study, the average online shopper will spend between R500 (US$39) and R2 999 per month over the festive period.
“The world is becoming digital,” said Geraldine Mitchley, senior director for emerging payments and innovation at Visa Sub-Saharan Africa said.
According to some reports, last year global consumer card payments surpassed cash payments for the first time, so whether you are shopping online or in a mall, electronic payments are playing an increasingly important role.
“New technologies, such as mobile payments, are also driving greater adoption, so the trend is definitely towards the growth of online goods and services,” Mitchley said.
Mitchley noted however security remained among the top reasons people are hesitant to shop online.
Across all categories, there is a lack of trust in making large purchases such as furniture and financial services.
“Consumers also want to know that their transactions are protected, their data is safe, and they are going to receive the goods they pay for,” Mitchley said.
– CAJ News
