This is what we set out to find with this study commissioned to PYMNTS
We’ve all heard about the boom in online shopping since the onset of the pandemic and the ensuing rise in cyberattacks. But how have the increases in online shopping and data breaches impacted consumers’ trust in payment channels?
We set out to find answers in our Securing eCommerce study, conducted in collaboration with PYMNTS. The study surveyed a census-balanced panel of 2,368 U.S. consumers about their online shopping habits, how these habits have changed since the pandemic, and any potential impacts to their sensitivity to data security risks.
Unsurprisingly, the study shows consumers are more concerned about data theft and fraud, and also reveals areas where eTailers need to step up their data protection game. If you don’t have time for the full report — although it’s a great read, we promise! — read on for some highlights on user eCommerce security perceptions.
4 key takeaways from our study
- Consumers hold merchants responsible for keeping personal and transactional data secure. Our study found that 65% of online shoppers are likely to terminate their relationships with eTailers after experiencing even a single instance of data theft or payment fraud. Clearly, ensuring a safe and secure customer experience is critical to retention and loyalty. A single mistake can be costly so now more than ever, it’s important to boost security best practices and mitigate the risks of fraud and theft.
- How the company protects data — actually — makes a difference. Fifty-nine percent of consumers reported that a guarantee of personal data protection is required before they decide to purchase. In fact, shoppers are just as likely to purchase from new merchants based on their data security as they are to purchase from them for their inventory. Consumers are demanding secure experiences online — to win their business, retailers must match their desires and provide a safe and seamless customer experience.
- Yes, more users are online, but they also have more concerns. Nearly half (48%) of consumers say they are more concerned now about data security risks than they were before the pandemic started. However, among consumers who are shopping online more frequently now than they were pre-pandemic, this figure rises to 57%. The takeaway? Retailers should address customers’ worries about the safety of their data.
- It’s important to educate customers on authentication and validation methods. How can merchants build trust with their customers? Our study suggests that consumers associate being asked to provide authentication factors (such as passwords or PIN codes) with stronger data security — even though these factors are widely considered less secure by the security industry than techniques such as behavioral biometrics. This means that eTailers should focus on educating users on the security methods (beyond regular authentication) they deploy as well as their data security best practices. By providing education and resources, merchants can help customers feel more secure and confident when they shop online.
Download the Securing eCommerce study for more insights
Building trust is the key to ensuring a strong customer experience, especially amid the current heightened cyber-threat landscape. With online shopping on the rise, eTailers must prioritize data security. Investing in behavioral biometrics and other security protections is a strategy retailers can adopt to help consumers feel the confidence they need to purchase.
The Securing eCommerce study offers additional insights into consumers’ evolving attitudes toward online shopping and data security protection — and what merchants should do to address their concerns. Download the full report below.