Consumers Value Security More Than Price
Most consumers (79 per cent) 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. Unlike the traditional understanding that all consumers care about is price, the 2022 Stay Secure survey, jointly conducted by the Department […]
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Most consumers (79 per cent) 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.
Unlike the traditional understanding that all consumers care about is price, the 2022 Stay Secure survey, jointly conducted by the Department of Economy and Tourism (DET) in Dubai and Visa, revealed that for consumers, security of payment facility is of utmost importance. Eighty-four per cent of consumers said the safety of the payment facility offered on a merchant website was the top reason they would choose to pay online with their cards rather than Cash on Delivery (COD).
Payment data protection by maintaining privacy was second (64 per cent of consumers), while the price of goods or services was the least important consideration (17 per cent) for consumers choosing a payment option.
The in-store trend followed a similar pattern, wherein consumers ranked security of the merchant’s payment facility (65 per cent) as the topmost factor when considering digital payment options to pay for goods and services, followed by guarantees and return policies (49 per cent) and safety and hygiene (45 per cent). Three out of four consumers surveyed have made a digital payment in the last month, and nearly half of respondents are using more digital payments in stores – especially contactless – and online since the onset of Covid-19.
Most consumers (79 per cent) 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 34 per cent of consumers prefer using cash for tipping at hotels, restaurants or tourist locations and utilities.
And while most consumers (70 per cent) say they are confident about recognizing a fraud or scam, a third surveyed in the UAE still struggle in this area.
Data privacy and security are critical for consumers: What merchants can do.
A majority (85 per cent) of respondents want to know how their personal information will be handled and protected before providing it to an ecommerce site. Additionally, about three-quarters of participants said they would like to know how security technology works to trust digital payment methods. It reinforces the importance of consumer education by payment industry stakeholders – financial institutions, payments companies and governments, to build consumer trust in digital payments.
Based on the survey findings, merchants can take the following steps to increase consumer trust and improve the payment experience. These steps include disclosing measures to protect consumer’s personal information, providing clear information about guarantees and refund options, and displaying logos/symbols of banking and payment partners.
Neil Fernandes, Visa’s Head of Risk for the Middle East and North Africa, said, “That consumers value security more than price when it comes to how their data is handled are important insights for merchants looking to build and maintain consumer trust in their payment offerings.” He added, “The fact that a third of consumers are still unable to identify a potential fraud reinforces the need for all players in the payments ecosystem to continue working together to ensure consumers are protected. ”
Now in its seventh year, the Stay Secure campaign continues to be an essential platform for Visa, Dubai Police, and the Department of Economy and Tourism in Dubai to help educate consumers about payment security and support merchants in meeting the increasing need for secure, seamless digital payments both in-store and online.”
New payment trends
BNPL:
More than three-quarters of (75 per cent) consumers are familiar with BNPL (Buy Now Pay Later), of which over a third (33 per cent) have used it in the past. An average of 65 per cent said they would be likely to switch stores, online shopping sites, or apps that offered a BNPL option, demonstrating the growing popularity of BNPL and the need for more retailers to consider offering new financing options.
Crypto:
Less than a quarter of respondents said they feel comfortable using newer forms of payment such as cryptocurrencies to pay for goods or services. In contrast, 17 per cent of respondents were unaware of cryptocurrencies. It indicated a need for more consumer education and awareness before cryptocurrencies can evolve as a common and trusted form of payment in the UAE.
Stay Secure social media campaign.
The survey corresponds with the launch of Visa’s seventh annual “Stay Secure” social media campaign on Facebook and Instagram (@VisaMiddleEast, @DubaiPolicehq @Dubai_ded) in partnership with Dubai Police and DET. The campaign reinforces safe digital payment practices and reminds consumers how to protect personal data even as they enjoy the benefits and convenience of ecommerce and contactless payments. The UAE Stay Secure webpage also includes fraud prevention tips for consumers and information on the security features of digital payments.
