Credit card usage on the internet is declining in the UK while the demand for alternative payment methods is on the rise, according to a nationwide survey from NEMS market research.
The study, conducted on behalf of Prepaid Services Company, found that 28% of people are using their credit card online less or not at all this year and more than a third said they would use cash online if it were as easy as over the counter sales.
David Hunter, chief executive of Prepaid Services Company, which launched its Cash-Ticket product earlier this year, said the economic situation was definitely a factor.
“If people are wary about using cards online for whatever reason, be it safety from fraud or simply because they want to monitor their online spending, they should have other options.”
The survey of 500 people also revealed that women are now more reluctant to use their cards with 31% either reducing their credit card spending or stopping it altogether compared with 24% of men.
Travel comes out as one of the industries where customers would prefer to use cash when shopping online. Of those who have access to the internet, 68% said they would buy flights and 71% would use it for travel.
Cash-Ticket is a prepaid voucher enabling consumers to purchase flights, ticket orders and shop online without having to provide personal bank details.