Visa Survey: E-commerce Market Continues to Expand, Making 'Improved Payment Experience' Crucial for Both Businesses and Consumers

Visa Worldwide Japan Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; Representative Director and President: Seetan Kitony; hereinafter 'Visa') commissioned Macromill to conduct a 'Survey on Online Payments' targeting businesses that sell to consumers online and the consumers themselves. The results indicate that as the e-commerce market continues to expand, realizing a smoother and more secure payment experience is becoming increasingly important for both businesses and consumers.

■ Business Survey Results: E-commerce Sales Expected to Grow, but 'User Experience' Remains an Operational Challenge
In a survey of businesses selling to consumers online, 85% believe that their e-commerce sales will increase. This trend becomes stronger as company size increases.

Credit card payment is the most adopted method, used by approximately 86% of businesses. Reasons for its selection include the large number of target users, high user convenience, and superior security.

On the other hand, about 80% (79%) of businesses are aware of customer drop-offs during the purchase process, including checkout. This rate is higher among larger companies, reaching about 90% for those with 500 or more employees. While there are various factors, about 30% (29%) of businesses cited concerns that 'users give up on purchases because they find entering card information or names on the payment screen troublesome.' This suggests that the nature of the payment experience is a factor influencing user purchasing behavior.

Furthermore, about 40% (38%) cited cybersecurity and dealing with fraudulent transactions as areas requiring continued effort in online sales operations. This highlights the need to simultaneously improve UX and security for consumers.

■ Consumer Survey Results: E-commerce Usage Expands, but Drop-offs and Payment Anxiety Become Evident
In the consumer survey, 52% and 53% of respondents answered that their frequency and amount of online shopping have 'increased' compared to three years ago, confirming the expansion of e-commerce. Credit cards are the most commonly used payment method across all sites and services, with reasons including 'earning points' (55%), followed by 'fast payment' (43%) and 'no hassle' (37%).

However, many consumers have experienced dropping off during online shopping, with 56% feeling anxious about entering card information or authentication, and 31% finding it inconvenient. This indicates that card information entry and authentication are factors that cause consumer burden. In particular, among those who enter credit card information every time, there is a high tendency for drop-offs at the 'card information entry field.'

■ The Key to E-commerce Growth is 'Safety, Security' and a 'Smooth Payment Experience'
The survey results show that while the e-commerce market is expected to continue growing, it is important for businesses to balance security measures with user experience, and for consumers to have an experience that reduces anxiety and hassle during payment. Against this backdrop, interest is growing in 'Click to Pay,' which reduces the hassle of entry and the anxiety of entering information every time, realizing an 'easy, fast, and secure' checkout experience. Visa will continue to work toward providing a more secure, convenient, and seamless payment experience.