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"30 percent of consumers actually decreased their online shopping, citing concerns about security."
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Written by Daniel   
Saturday, 14 October 2006 12:31
Power Pay
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OCTOBER 13, 2006 | Online purchasing showed double-digit growth last holiday season, for the third straight year. But one trend got lost in all the excitement: 30 percent of consumers actually decreased their online shopping, citing concerns about Internet security.

As they gear up for another big shopping season, retailers are searching for ways to get that 30 percent back. And one of their chief weapons will be online payment systems that don't require customers to type a credit card number into a retailer's online system.

"With the continued growth of identity theft, credit card fraud, and phishing scams, security on the Internet is more important than ever," says John Rogers, founder, chairman, and CEO of Pay By Touch, an online payment service. Working with UPEK, a vendor that makes a USB-capable fingerprint sensor, Pay By Touch earlier this week unveiled TrueMe, a biometric authentication service that lets users protect payments with a fingerprint.

Other experts agreed. "There is a strong perception out there that credit cards are not secure," says Marwan Forzley, president and CEO of MODAsolutions, which offers Secure-eBill, a service that helps consumers make retail purchases through their online banking systems.

Statistics support this conclusion. According to the Business Software Alliance, 38 percent of consumers who shopped online during the 2005 holiday season said they spent more than the year before -- but 30 percent said they spent less, citing concerns about credit card fraud, identity theft, and spyware. A June report by Javelin Strategy & Research says that 79 percent of consumers would buy more online if they had a more secure payment system. And Gartner and Jupiter Research estimate that there are still 80 million Internet users who don't buy anything online, many of them concerned about security issues...

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