Limited payment options curbs online shopping

Consumers feel the recession increased the threat of online fraud

Online firms risk losing business due to lack of options to pay for goods and services, according to research.

Half of the 2,000 UK web shoppers polled by YouGov said they would cancel purchases if their preferred payment method is not available due to security concerns.

Some 40 per cent of those who habitually buy online would feel more confident with a variety of payment options, says the study. Conversely, over half of the sporadic web shoppers questioned - who accounted for 32 per cent of the survey sample - said they were concerned about the security risks of entering credit card details online.

According to the research commissioned by ClickandBuy, limited payment methods mean online firms will lose business amid a period of significant growth for e-commerce – some 45 per cent of consumers surveyed would shop online to get bargains of items they would normally on the high street.

Nearly three-quarters of UK consumers believe that the recession has put them at greater risk of identity theft and related crimes, according to a recent security report from Unisys.