When it comes to the safety of their financial information, consumers still show a considerable distrust of technology companies and online retailers.
Three out of four of online buyers feel that their payment information is insecure, a Bizrate survey of over 6,200 American shoppers found. While across all generations and genders, most respondents (72 per cent) trust their bank, there is some discrepancy over which online retailers and internet technology providers can keep their financial information safe.
Overall, PayPal and Amazon lagged behind banks. Neither e-commerce payment processor won the trust of more than 50 per cent of the respondents, with PayPal getting 48.9 per cent and Amazon 45.4 per cent.
Apple and Google, however, did much worse. The two straddled American Express and eBay in the survey. American Express was only trusted by 21.4 per cent of respondents, likely due to several high-profile credit card breaches in the US this year. eBay was only trusted by 18.7 per cent of respondents, which is likely to fall even lower after its breaks off from PayPal, which has a higher level of trust.
Apple, which holds millions of card numbers through iTunes and now Apple Pay, was only trusted by 21.4 per cent, and Google a mere 12.9 per cent. The irony in these figures is that both companies are attempting to break into mobile payments, and both run online stores for digital content. Google’s low ranking does not bode well for the already struggling Google Wallet or the company’s online offerings.
However it was the younger generation boosted PayPal and Amazon’s rankings, with more than 50 per cent of generation Y trusting them. They were also more likely to trust Apple, eBay and Google. PayPal still did well with generation X, with more than 50 per cent of generation X trusting the payment processor alongside their bank.
“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.
She continued, “PayPal ranking number two, and with greater than 50 per cent 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.”
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