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Aug 1, 2007
MODASolutions, a provider of payment solutions that extend web banking to the checkout, commissioned the study, which revealed a compelling connection between the two groups.
Heavy online banking users spend 34 percent more when shopping online. This dramatic increase in Internet spending validates MODASolutions' eBillme online banking payment solution, saying it represents a key driver to increasing sales and customer acquisition for merchants.
"Consumers are realizing the benefits of online banking, which are security, convenience, and speed, and are discovering that these benefits can also apply to ecommerce if retailers offer online banking payment alternatives," says Jim Okamura, senior partner of J.C. Williams Group. "Consumers are now comfortable and tech savvy enough to shop online, in addition to paying bills and transferring funds. And as more consumers regularly engage in both online banking and ecommerce, we expect this intersection to continue growing with profitable results."
"The survey reveals two important insights into consumers' ecommerce habits," says Marwan Forzley, president and CEO of MODASolutions. "Online bill payers are more likely to be online shoppers, making them a lucrative target for retailers."
"But while these consumers trust their financial institutions, they're still concerned about their financial security during online retail. This means alternative payment options, which let consumers pay using their bank accounts, play into an established trust that appeals to consumers. For retailers, offering alternative payment options can attract more customers to their sites, increase average spending, and convert more website visitors into sales," he says.
The survey also revealed that 80 percent of respondents indicated that a safe and secure online payment option was the most important factor. Alternative methods allowing them to purchase through their online bank accounts was of interest to 76 percent.
The total ecommerce average amount spent in the previous six months by those who bank online was $1,060, approximately double the industry norms ($488) from a previous national survey conducted by J.C. Williams Group.
Finally, 50 percent of the U.S. online buyer population made at least one web bill payment in the previous six months at their primary financial institution or bill payment portal.
Topic: Business Strategies
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