MasterCard Survey: What Holds Customers Back From Online Shopping?

September 30, 2015     By : Sofia

From shopping in mobile apps to tapping a device in the grocery store, consumers across North America are shopping in a variety of ways never seen before. According to a recent MasterCard survey, The Psyche of Shopping, more than half (52%) of North American consumers mention the ease of checkout and information storing as one of the top reasons for shopping online or via mobile devices.

The smartphone revolution and great advancements in payment technologies let consumers shop wherever and whenever they want. One of the most interesting insights from the data suggests that nearly two out of five consumers in North America (37%) have shopped online or via mobile app while in bed. Here is the list of the craziest places North Americans shopped:

– Bed – 37%

– Work – 26%

– Bathroom – 24%

– Restaurant – 15%

– Shower – 4%

– Funeral – 2%

Online shipping, with its convenience, also compromises shoppers’ security. The top three reasons not to shop online as reported by North American consumers are:

– Security concerns – 50%

– Discomfort with sharing payment information online or on mobile – 49%

– Disliking having to enter payment information repeatedly on every website – 33%.

Interestingly, all of these concerns appeared to be higher in Canada than in the U.S.

– Security concerns: Canada 57%, U.S. 44%

– Discomfort with sharing payment information online or on mobile: Canada 59%, U.S. 39%

– Disliking having to enter payment information repeatedly on every website: Canada 37%, U.S.  30%

There are also certain differences in perception of security depending on gender. In fact, men are more likely to be concerned about security (58% of males vs 45% of females) and being uncomfortable with sharing their payment information online or via mobile (55% of males vs 46% of females).

The shopper’s age also has its impact on the choice of a shopping channel. The younger generation seems less concerned about security compared to older generations. Among the consumers of age 65+, 66% said security is the top reason for not shopping online or via mobile app/e-commerce. Among people of ages 18-24 years, only 11% said the same.

Another pool of reasons why shoppers are being “turned off” related to the situation when online commerce is not an available option and may choose to make a purchase somewhere else. The statistics here are following:

Retailer did not have:

– An online payment option – 68%,

– A mobile payment option – 19%

– An in-app payment option – 14%.

Hence, retailers may cause in-store and online shoppers to go somewhere else if they do not provide any e-commerce option.

As a curious addition, the results showed that Americans are more likely than Canadians to list not wanting to leave the house as a top reason to shop online or via mobile. 42% of Americans vs 35% of Canadians.

As we can see, it is not hard to turn customers off from shopping online. There are plenty of reasons customers may abandon a cart. Then what is it that can facilitate online shopping? Results of the survey indicated that 59% of North American customers shop online or via mobile devices because of the ability to compare prices while 52% reported easy checkout, information storage, shipping and payment as being a reason to go online.  

Clearly, retailers have to follow the customers when it comes to the choice of the channel and shopping habits. The MasterCard survey demonstrates how meticulous the customer can be when making a purchase. Having this information in mind and being client-focused, MasterCard developed an easy way for shoppers to pay when shopping online, on a mobile device or in-app – MasterPass. Insights from the marketplace enabled the company to create a product that will make online shopping experience simple, safe and seamless.

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Sofia

Sofia is a contributing writer for LTP based in New York. She is a market research professional skilled in data analysis and visualization. Sofia has an extensive experience in consumer behavior studies and marketing analytics. She is passionate about disruptive startups with innovative business models that are having a powerful impact on the industries.

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