Online shopping takes centre stage
Emerging markets have graduated from the fringes of the online environment to the centre, says PayU.
According to Mark Chirnside, CEO of the online and mobile payment service provider - consumers are steadily becoming savvy, globally focussed and knowledgeable as the online environment – and how they conduct themselves in it – changes.
His statement comes on the back of the latest annual MasterCard Online Shopping Survey released by earlier this month. In the survey it is revealed that online shopping in SA has steadily increased over the past two years, with 58% of active internet users saying that they use the internet for shopping.
“This finding should not be skimmed over fleetingly – not by companies wanting to remain relevant, and dare I say afloat. If there is one thing that the economic recession has taught the big decision-makers of the world it is proactive thinking in the way of trend analysing,” says Chirnside.
“What we are seeing here is a clear as day tendency that is not going to revert back to the old. Online shopping is where consumers find convenience but, what businesses should pay attention to is that, more than deals, consumers are looking for peace of mind,” he added.
Findings in the survey are that consumers, when choosing an online retailer from where to make their purchases, seek lower prices, payment convenience and secure payment facilities – with 38% of respondents saying that they are not convinced that the latter consideration is effectively addressed.
“While it is encouraging that the figure shows a decline from results published in 2011, this figure should be less. Merchants simply cannot afford to not guarantee their consumers security. This is especially true now that the significance of social media is more pertinent than ever – 140 characters have become the gateway to companies’ reputation, which is why a secure, trusted payment gateway is a non-negotiable foundation.”
Indications from the survey are that trust is key when trade is conducted in the online environment, and that this is no longer an abstract concept when measured in terms of customer satisfaction.
“At PayU our vision is to be the most trusted payment gateway in the region for both merchants and consumers, and we are succeeding,” Chirnside stated.
According to PayU, its Payment Solutions is showing a 78% year on year growth, with more merchants coming on board and more consumers registering accounts. PayU says it processes nearly 65% of the total value of e-commerce transactions switched in SA.
“We know that without trust online shopping would be dead – and so would we. In this billion dollar industry it is our goal not to cost our merchants a cent in lost revenue in the form of unsatisfied consumers.”