According to a recent Forrester Research report, credit cards will be the preferred payment method for consumer purchases made over the World Wide Web. The report examines the future of payment solutions including electronic cheques, virtual smart cards and digital cash. Forrester spoke with 50 on-line retailers and content providers in the US. 84 per cent of interviewees already accept payments on-line and the majority of these payments are made with credit cards.
"Credit cards boast advanced security, regulatory protection and consumer familiarity," said David Weisman, director of Forrester's money and technology strategies service. "These factors will help credit cards sustain their early lead despite competition from digital cash and electronic cheques."
Although vendors are busy developing electronic forms of debit cards, cheques and cash, Forrester says these payment solutions will not receive widespread support. "Debit-based options will be unpopular. Consumers will fear that their bank accounts could be drained," said Weisman. "Debit transaction vendors must establish security standards with brand name endorsements in order to gain customer confidence."