KARACHI: As many as 76 per cent of consumers polled by Visa and Daraz said the security of the payment facility offered on a merchant website was the top reason why they chose to pay online with their cards rather than cash-on-delivery (COD).
According to the 2022 Stay Secure survey results released on Tuesday, guarantees that their payment data would be protected (maintaining privacy) was the second reason (63pc of consumers). The price of goods or services was not the most important aspect (13pc of consumers) for choosing the payment option.
The same trend was also observed in-store wherein consumers ranked the security of the merchant’s payment facility (63pc) as the top factor when considering digital payment options, followed by guarantees and return policies (44pc) and convenience and speed (43pc).
Three of every four consumers surveyed reported they made a digital payment last month. Nearly half of the respondents were using more digital payments in stores — especially contactless — and online since the onset of Covid-19.
A majority of consumers (85pc) 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 42pc of consumers preferred using cash for tipping at hotels, restaurants or tourist locations and utilities.
While a majority of consumers (75pc) said they were confident about recognising a fraud or scam, a third of the surveyed consumers in Pakistan still struggled in this area.
A majority (82pc) of the respondents wanted to know how their personal information would be handled and protected before providing it to an ecommerce site. Additionally, three in four (75pc) respondents stated that they would like to know how security technology worked to be able to trust digital payment methods in general, reinforcing the importance of consumer education by payment industry stakeholders such as financial institutions, payments companies and governments.
Published in Dawn, August 24th, 2022