With card fraud currently affecting more than seven million UK consumers and CNP fraud doubling in value as cardholder present chip and pin card fraud declines, how will card-dependant e-tailing in the UK continue its upward sales spiral?
One answer is secure cash transactions. Online cash transactions through Ukash have climbed to over £5m a month, just seven months after the company’s unique payment method went fully live in the UK.
The globally-recognised e-commerce cash payment operator is selling around 200,000 cash vouchers a month, with an average transaction value of £26, and is seeing 31% month on month growth.
The vouchers are being used to buy goods and services online from more than 300 redeeming merchants, from Ladbrokes to Skype.
Celent and Nilson's recent online purchasing report predicts that less than 50% of online shopping will be paid for by credit card by 2009, and in a survey conducted by the company this summer, 58% of respondents said they prefer using cash to a credit or debit card in every situation; 68% said they would prefer using cash online; 75% of those who had never shopped online said they would do so with cash.
For consumers who do not have payment cards or are wary of using them over the Internet, cash is a simple and secure way to buy goods and services online, and it protects merchants from repudiations and charge-backs.
Buying and using Ukash is incredibly simple. In the UK and Europe, Ukash is working with PayZone, ePay and PayPoint to provide accessible purchase points for consumers to buy Ukash vouchers. There are currently 120,000 payment/purchase terminals operating in the UK, Germany, Ireland and Spain, in newsagents, grocery stores, department stores, petrol forecourts and other convenient locations.
Unlike other pre-paid initiatives (such as pre-paid Visa or Mastercard products), Ukash is free to the consumer at the point of purchase, ensuring cash consumers are not discriminated against.
Ukash is authorised by the Financial Services Authority (FSA) to operate as a regulated e-money issuer, enabling a single maximum online cash payment transaction of £500.