UK consumers resigned to fraud risks when shopping online

 Seven in 10 (70%) now prefer shopping online rather than going to physical stores, and a similar number 68% shop online much more than they did a year ago. This is despite 65% of consumers accepting that a certain level of ecommerce fraud is inevitable during the ecommerce process, up from 52% in 2017, underlining the increasing value consumers put on convenience.

One third (33%) of UK shoppers said they have experienced payment fraud in the past year, up 6% on 2017.The report also showed that when shopping online, 61% have used digital wallets in the past month, 34% have used a credit card, and 57% a debit card. Meanwhile, 51% are using in-app purchases more than a year ago, as the popularity of services such as Uber and Deliveroo change the traditional ecommerce payment process by retaining customers information for a seamless app experience. In fact, 79% prefer to shop on a website that already has their payment information stored, highlighting that UK consumers place a premium on convenience.

Yet, data shows these attitudes do not translate to the realm of frictionless payments, which are being held back by UK consumer concerns over security and data privacy, according to the findings:

• 52% of UK consumers cite fraud as the biggest barrier to using them

• 43% express concerns around the use of their data

• 67% think voice-activated systems are not secure.

And in spite of the popularity of ecommerce, cash continues to thrive as the most common form of payment:

• 88% of consumers used it in the past month to make a purchase

• 62% of UK consumers carry less cash than they did a year ago.

These findings emerge as other regions are taking active steps to navigate the fraud landscape typically associated with online retail. For instance, only 28% and 26% of German and Austrian consumers accept a level of fraud is inevitable, which is why pay by invoice is popular in these regions. Also, 29% of Germans and 38% of Austrians have used this method, which circumnavigates the entry of payment details online, with offline verification and authentication replacing it.

Lost in Transaction: Payment Trends 2018 is an independent research project commissioned by Paysafe and supported by the UK-based agency Loudhouse in Q2 2018. It follows Paysafes inaugural Lost in Transaction report in 2017. The research was completed among 5,056 consumers from the US, UK, Canada, Germany and Austria.