Online payment security gets APAC nod

Online payment security gets APAC nod

Summary: Over 60 percent of online shoppers in the Asia-Pacific region are satisfied with current levels of Internet payment security, new study from Visa shows.

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TOPICS: CXO, E-Commerce
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Three in five online shoppers in the Asia-Pacific region are satisfied with current levels of online payment security, but more can be done, a new study has revealed.

The study found that 61 percent of online shoppers in the region deemed online payment security as satisfactory, Visa said in a statement Thursday. Through market research firm Ipsos, the payment card company surveyed over 9,100 Internet users in Australia, Hong Kong, India, Japan, Korea and Singapore who went online at least once a week. The study was conducted between April and December last year.

When asked what made them confident enough to complete their online transactions, 76 percent of online shoppers indicated the detection of good security on a Web site. Seventy-four percent opted for the availability of a merchant-sponsored return policy as well as proof of consumer protection from online fraud.

Disclosure of personal information as well as misuse of payment card details by retailers, were the most commonly cited concerns among the region's users--49 percent of them indicated they fretted over such scenarios. Disclosure of payment card number was also a cause for worry for 47 percent of online shoppers, while 46 percent were concerned over retailer databases being hacked or breached.

Mohamad Hafidz, Visa's Asia-Pacific head for e-commerce, said in the statement: "It does not require complicated procedures or heavy investment in security to help boost consumer confidence in online shopping. Our findings from this survey show that simple measures like displaying the logo of the type of secure payment platform online merchants offer, such as Verified by Visa, can translate into greater confidence for consumers to spend on their Web site."

The study also found that Internet users in the Asia-Pacific region believe that online payment security is a joint effort between merchants and payment processing service providers. Nearly half (48 percent) indicated that having a bank guarantee the transaction would boost e-commerce consumer confidence. Forty-five percent felt that the guarantee should be provided by the payment card company.

Some 43 percent of online shoppers also pointed out that Web sites should state they have a secure payment method in place.

Hafiz added: "Preventing cardholder data compromise is indeed a shared responsibility between merchants and payment processing service providers. As part of their secure payment strategy, Visa strongly recommends merchants adopt a multi-layered approach to online security which includes being compliant with the PCI (Payment Card Industry) Data Security Standard, to help make consumers feel more confident in using their payment cards online."

"Besides offering liability protection through Visa's zero-liability program, incorporating secure payment platforms such as two-factor authentication can further protect consumers by making it harder for criminals to conduct unauthorized transactions," he added.

Data from Visa showed that 82 percent of the region's online users are likely to make purchases over the Internet in the next six months.

Topics: CXO, E-Commerce

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