76% Consumers Think Cashless Payments Are Better: Survey

The security of the payment facility offered on a merchant website is the top reason to pay online rather than Cash on Delivery (COD), believe the majority of consumers.

According to the results of 2022 Stay Secure survey launched by Visa and Daraz, 76 percent of the consumers believed that the security of payment facility provided on merchant websites makes cashless payment a preferable option.

63 percent of the consumers believed that online payments guarantee that their payment data would remain protected, while 13 percent of the consumers were of the view that the price of goods or services is not the most important aspect for choosing a payment option.

When considering digital payment options to pay for goods and services, 63 percent of the consumers’ ranked the security of the merchant’s payment facility as the topmost factor, while 44 percent ranked guarantees and return policies as the prime factor when considering digital payment options. 43 percent believed that convenience and speed of digital payments is the top factor when considering digital payment options.

Three out of four consumers surveyed said that they have made a digital payment in the last month. Approximately half of the respondents stated that they are using more digital payments in stores and online since the onset of Covid-19.

85 percent consumers said they would switch stores or online shopping sites and apps, based on the payment methods offered, with most consumers indicating a strong preference for digital payments over cash.  The survey found that 42 percent of consumers prefer using cash for tipping at hotels, restaurants or tourist locations and utilities.

75 percent of consumers stated they are confident about recognizing a fraud or scam in the digital space. However, a third of those surveyed said that they still struggle in this area. 82 percent of consumers said that they want to know how their personal information will be protected before sharing it with a merchant.

Additionally, 75 percent stated that they would like to know how security technology works to be able to trust digital payment methods in general, reinforcing the importance of consumer education by payment industry stakeholders – financial institutions, payments companies and governments, to build consumer trust in digital payments.

Visa’s Head of Risk for the Middle East and North Africa, Neil Fernandes, commented that the survey results provide important insights for merchants looking to build and maintain consumer trust in their payment offerings. He highlighted that a third of consumers are still unable to identify a potential fraud, which reinforces the need for all players in the payments ecosystem to continue to work together to ensure consumers are protected.

Managing Director Daraz (Alibaba Group), Ehsan Saya, highlighted that privacy and security of their data remains a primary deterrent as more people begin to feel comfortable shopping online. He highlighted that the “Stay Secure initiative” helps counter this issue by educating merchants on how to implement a safe and customer friendly online payment system, and the customers on how to keep themselves secure when shopping online. He hoped that the campaign will also help show consumers how to identify potential frauds.

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