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- Category: Digital Life
- Published on Monday, 11 February 2013 20:59
ALTHOUGH relatively new to online payments, Filipino consumers have discovered the fascinating world of shopping online, which allows for convenient transactions and a few simple clicks. The Visa e-Commerce Consumer Monitor Research 2012, a recent study conducted by Visa in collaboration with TNS, found that 97 percent of people surveyed had browsed online for products and services over the last 12 months, and 71 percent successfully made an online transaction. Questioning 8,000 consumers in eight countries across Asia Pacific, Central Europe and Africa, online shopping is expected to continue to grow. Recognized as a developing market in the digital space, only 49 percent of Filipino respondents said they have had more than a year’s experience in online transactions, but 86 percent of respondents indicate that they are likely to make more purchases this year.
The impact of online shopping goes beyond virtual payments, as online browsing is highlighted as an essential part of both the online and offline purchase cycle. Increasing one’s understanding of a product, exploring and selecting product options and deciding on a purchase location are cited as top reasons for online browsing. Product categories with the highest conversion from browsing to payment include movie tickets (52 percent), holiday and travel tickets (50 percent) and bill payments (48 percent), and a significant growth in online transactions is expected across all payment categories for this year. Over the past 12 months, among the standout categories of online purchases were groceries (172-percent growth), movie tickets (147 percent) and fashion (131-percent growth). Purchases for movie tickets also grew 113 percent from the previous year.
“While eCommerce is still in its early stages in the Philippines, we expect to see rapid growth across all purchase categories in the next year. However, there are still barriers to overcome for the eCommerce ecosystem in the Philippines to fulfill its potential. Besides increasing consumer trust in online merchants when it comes to product delivery, online payment security concerns also have to be addressed. As we have seen in the survey, as important as it is to develop innovative solutions to improve security online, it is also crucial to communicate these measures frequently and effectively to the Filipino consumer, from both the banks and the merchants,” said Iain Jamieson, Visa country manager for the Philippines and Guam.
The availability of new and varied Internet access devices is a key factor enabling the shift toward online shopping. Thirty-two percent of those surveyed say they have browsed online for products or services via a mobile phone or tablet device in the last year. In countries with higher mobile phone and tablet penetration, the trend is shifting towards device-based purchases. Digital content was the most browsed item on mobile phones at 40 percent, followed by personal electronics (33 percent) and household electronics (30 percent).
“The prevalence of smartphones and tablets translates to easier online access for consumers to retailers anytime, anywhere, and we expect to see more people browsing and shopping on-the-go as a result,” said Jamieson. “As more consumers shop on the internet, there is a greater need to make the online shopping experience more secure. Visa strives to continually deliver next-generation solutions that allow consumers to enjoy the same convenient, reliable and secure experience they have come to expect from us—both offline and online.”
Improved consumer perception of online security has also been a key factor driving the increase in online shopping activity. Six out of 10 respondents who made online transactions have said that their frequency of online shopping increased due to significant improvements in security as compared to two years ago. This was attributed to the protection of personal and financial data by their bank, as well as online security features like Verified by Visa and regular communication from banks on added security features.
Payment cards were cited as the top method for online payments by 68 percent of respondents, with credit cards (42 percent) being used more than debit cards (34 percent). The use of payment cards allow cardholders to enjoy simple transactions, especially when making overseas purchases online, particularly in the United States. The added security measures by banks and online payment security features, such as Verified by Visa, increased consumers’ trust in making online transactions and a heightened acceptance of the developing digital market today.
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