Controlled payment number (CPN) technology provider Orbiscom has published research that shows online shoppers spend two to four times more shopping online when they are using substitute card number technology.
This technology allows consumers to use temporary credit card numbers that expire shortly after each online purchase, thereby providing full protection from hackers.
The study of shopping habits among cardholders using CPN through major credit card issuers, reveals that those who shop the most, show the most dramatic increase in incremental spend.
Analysts say this disproves a widely held notion that frequent purchasers have overcome their fears of having their credit card number stolen.
Study of aggregate information from consumers using the technology, comparing last year’s second and third quarter internet sales totals with this year’s second and third quarter figures, shows an average increase in spend of more than 220pc, compared with only 29pc for the typical online shopper, according to eMarketer.
The AIB is among the financial institutions which has developed its own branded version of the Orbiscom Controlled Payment.
High spenders, i.e .those who spent over US$1,000 online last year during the six month period increased spend by an average of US$1,184 — more than doubling the amount of spend through use of this technology.
The research shows that the technology is appealing not just to those who are reluctant to shop online but also the larger percentage of consumers also making online purchases.
A recent report from Forrester research and NFO World Group shows that out of the 7,000 homes studied, almost 80pc of internet users still don’t trust that their personal — including credit card information, will be protected from hackers.
Diane Shaib, executive vice-president responsible for Orbiscom’s US Operation said: “More consumers are shopping online than ever before, but at the same time, they know that the more they shop and spend online, the more vulnerable they become to online threats such as fraud and identity-theft”.
Analysts say the use of this kind of technology could also boost the Christmas shopping season.
Other institutions which have developed their own version of the Orbiscom Controlled Payment platform technology include Citibank, MBNA, Swedebank and Credit Lyonnais.
By Suzanne Byrne