Seventy-six percent of consumers said security of payment facility offered on a merchant website was the top reason they would choose to pay online with their cards rather than Cash on Delivery (COD), according to the 2022 Stay Secure survey launched today by Visa and Daraz. Guarantees their payment data would be protected (maintaining privacy) was second (63% of consumers) while price of goods or services was not the most important aspect (13%) for choosing payment option.
The same trend was also observed in-store, wherein consumers ranked security of merchant’s payment facility (63%) as the topmost factor when considering digital payment options to pay for goods and services, followed by guarantees and return policies (44%) and convenience and speed (43%). Three out of four consumers surveyed have made a digital payment in the last month, and nearly half of respondents are using more digital payments in stores – especially contactless – and online since the onset of Covid-19.
Majority of consumers (85%) said they would switch stores or online shopping sites and apps, based on the payment methods offered, with most consumers indicating a strong preference for digital payments over cash. The survey found that 42% of consumers prefer using cash for tipping at hotels, restaurants or tourist locations and utilities.
And while majority of consumers (75%) say they are confident about recognizing a fraud or scam, a third surveyed in Pakistan still struggle in this area.
Data privacy and security is critical for consumers: What merchants can do
A majority (82%) of respondents want to know how their personal information will be handled and protected before providing it to an eCommerce site. Additionally, three in four (75%) stated that they would like to know how security technology works to be able to trust digital payment methods in general, reinforcing the importance of consumer education by payment industry stakeholders – financial institutions, payments companies and governments, to build consumer trust in digital payments.
Based on the survey findings, merchants can take the following steps to increase consumer trust and improve payment experience: disclosing measures to protect consumers’ personal information, providing clear information about guarantees and refund options, and displaying logos/symbols of banking and payment partners.
Neil Fernandes, Visa’s Head of Risk for Middle East and North Africa, commented: “That consumers value security and privacy more than price and transparency when it comes to how their personal data is handled are important insights for merchants looking to build and maintain consumer trust in their payment offerings. And the fact that a third of consumers are still unable to identify a potential fraud reinforces the need for all players in the payments ecosystem to continue to work together to ensure consumers are protected. Now in its seventh year, our Stay Secure campaign continues to be an important platform for Visa and our partners to help educate consumers about payment security and support merchants in meeting the increasing need for secure, seamless digital payments both in-store and online.”
Ehsan Saya, Managing Director – Daraz (Alibaba Group) said: “As more people begin to feel comfortable shopping online, privacy and security of their data remains a primary deterrent. The Stay Secure initiative helps counter this issue by educating merchants on how to implement a safe and customer friendly online payment system, and the customers on how to keep themselves secure when shopping online. The campaign will also help show consumers how to identify potential frauds. In order for financial inclusion to grow in Pakistan, it is imperrative customers understand the benefits of digital payments and how to keep themselves safe when transacting online and offline.”
Consumers are inclined to shop at stores and sites that offer multiple payment options
Around two thirds of (70%) consumers are familiar with BNPL (Buy Now Pay Later).
An average of 65% said they would be likely to switch stores or online shopping sites or apps that offered a BNPL option, demonstrating the growing popularity of BNPL and the need for more retailers to consider offering new financing options.
The survey corresponds with the launch of Visa’s seventh annual “Stay Secure” social media campaign on Facebook and Instagram (@VisaMiddleEast, @darazpk) in partnership with Daraz. The campaign reinforces safe digital payment practices and reminds consumers on how they can protect personal data even as they enjoy the benefits and convenience of eCommerce and contactless payments. The Pakistan Stay Secure webpage also includes fraud prevention tips for consumers and information on security features of digital payments.