A new study by Cisco’s Internet Business Solutions Group details a growing acceptance–and trust–among e-commerce consumers using alternative payment providers PayPal, Google Checkout, Obopay and Amazon.
The poll found that 35 percent are heavy or frequent users of those payment options, and 64 percent trust them almost to the level they trust banks (67 percent) in facilitating payments. And as consumer expectations rise, according to the survey, “merchants, advertising agencies and new financial services entrants are all trying to capture consumer attention at the point of purchase and, in some cases, to disintermediate traditional payment players,” according to a release.
And that’s not just online. Eighty-seven percent of those who use the services of alternate payment providers expressed a “strong interest” in SMS-text payment services in physical stores. Citing figures from The PELORUS Group, Cisco notes that emerging contactless, mobile and other payment methods are expected to grow to $400 billion.
In addition, 23 percent of all survey respondents expressed interest in using a mobile device to make contactless payments in physical stores, “and that number is only expected to grow,” according to the study. “Two-thirds of current mobile banking users expressed interest in ‘swiping’ a device embedded with a chip at the point of sale.”
The survey can be found at www.cisco.com/go/ibsg/financialservices.