The Bankwatch

Tracking the consumer evolution of financial services

Payments News: More Consumers Trust, Use Internet To Organize, Manage Finances

 Report commissioned by CheckFree in the US, validates that even the holdouts are migrating to online bill payment, with fears of identity theft helping to drive that migration.

Online is Safer than Paper: Facts Quell Initial Fears

Source: Payments News: More Consumers Trust, Use Internet To Organize, Manage Finances – November 02, 2006

Its not that fear for online security has dropped, but rather the fear of identity theft has overtaken other fears.

  • The number of respondents that indicated they do not trust the Internet with the security of their financial information declined by 60 percent: from 20 percent in 2004 to just eight percent in 2006.
  • Thirty-seven percent of 2006 respondents indicated they agreed that paying bills online is safer than paying them by mailing a paper check, as opposed to just 24 percent in 2004. This is an increase of more than 50 percent.

This is the previously unsaid truth.

However, it has been shown that 90 percent of known-cause identity fraud happens through offline channels,” said James Van Dyke, founder and principal analyst, Javelin Strategy & Research. “It’s rewarding to see that consumers now understand that using an electronic billing and payment program is not only safe, but is one of the best things they can do to help protect themselves from identity fraud.”


Written by Colin Henderson

November 2, 2006 at 20:48

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