Online Credit services

  • An inability or reluctance to use credit cards because of the state of the economy (48 percent of consumers say they have decreased their use of credit cards in 2009) and a resulting shift to use of debit cards to help control purchasing.
  • Continued expansion in the number and prevalence of alternative payment options at merchant sites.
  • Online credit services that offer credit terms that are superior to those offered by credit cards (11 percent of consumers who used an alternative online payment option selected the option because it enabled them to delay payment).
  • Enhanced security features (among consumers who used an alternative online payment option, 19 percent did so to avoid misuse of their payment information, and 14 percent did so to keep their identity private).
  • Recommendations by a bank or other trusted provider.

Javelin reports that as a result of these influences, alternative payment methods will account for 19 percent of total dollar retail payments online in 2014, and credit card usage for online shopping will drop.

The chart compares the online purchase volume and share of credit and debit cards from 2008 to the present, with forecasted growth or decline through 2014

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