Thanks to a rash of recent security breaches at high profile retailers, security is top of mind with consumers today.
Bizrate Insights, a division of Connexity (formerly Shopzilla), has announced the results of their latest study on consumers trust in online companies to keep their credit card information safe. The results aren't good.
Polling 6,200 online buyers, Bizrate Insights discovered that there is a sizable lack of trust among consumers regarding whether or not they believe their payment information is safe online. In fact, the study found that more than three quarters (76 percent) of online consumers are not satisfied with the strength of security guarding their information. What's more, shoppers far and away trust their own bank or credit union more (72 percent) than any company on the Web (PayPal is the most trusted coming in at 48.9 percent).
One of the most interesting statistics is that while PayPal is the most trusted online company with personal and credit card information, its parent company eBay inspires far less trust in consumers (just 18.7 percent trust the ecommerce company).
"Among these tech transactional titans, it is those that have low barriers for usage and that have put consumer protection in the forefront, that have earned the greatest amount of trust," stated Hayley Silver, VP of Bizrate Insights, a division of Connexity. "PayPal ranking number two, and with greater than 50% trust from the younger generations, could be a 'Major Opportunity' that deserves more investigation among its customer base. With low barriers to usage and such high levels of trust, PayPal could make a strong case to add a wallet-less payment option to its arsenal."