Most Shoppers Will Buy Gifts Online This Year, But Worry About Fraud

Most Shoppers Will Buy Gifts Online This Year, But Worry About Fraud

December 10, 2020

Three out of four consumers (76 percent) plan on conducting more than half of their holiday shopping online this year. That’s according to TransUnion’s newly released 2020 Consumer Holiday Shopping Report, which noted the number of shoppers going online is up significantly from the 57 percent who said the same last year. 

The report found only 21 percent of consumers said they planned on shopping in person for big sales events, such as the recent Black Friday. Additionally, 32 percent of consumers said they will be shopping less at brick-and-mortar stores this holiday season compared to last year. 

The report, which has insights gathered from an online survey of 2,620 adults conducted in late October, also found that consumers cite a demand for convenient and secure shopping experiences and highlighted how important convenient interactions are for many consumers amid the pandemic. 

Mobile Devices Are Hot for Holiday Shopping

More consumers will be using their mobile phones to shop online, according to TransUnion.

About 78 percent of consumers said they will use their mobile phones for online holiday purchases this year—up from 73 percent last year. Gen Z, Millennials and Gen X were the biggest users of mobile at 84 percent each, with Baby Boomers at only a 65 percent usage rate. 

With more mobile phone use, features such as “pre-filling” a consumer’s personal information are becoming more important than in the past. The survey finds 61 percent of consumers said it is at least moderately important to have some of their personal information pre-filled at the time of checkout. 

The research also found 28 percent of consumers will abandon their online shopping cart when they experience payment issues. Another 25 percent will abandon the transaction if there are too many steps to make purchases.

Online Fraudulent Activity Continues to Worry Consumers

Convenient transactions are clearly important to consumers, but security and fraud prevention are of particular concern for many shoppers this holiday season. Nearly half of survey respondents (49.6 percent) said they are concerned with being victimized by fraud this holiday season. This is a slight increase from last year when 46.4 percent were concerned.

Many consumers also do not mind going through a few extra steps to ensure a secure transaction. About 58 percent of respondents said they view additional identity validation steps during the checkout process positively.

Half of respondents said they would be more willing to make an online purchase from a retailer that provided two-factor or multifactor authentication rather than just username and password.

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Joan Goodchild

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