Opportunity for alternative payment methods in travel sector: survey

Demand for online cash payments is on the rise in the UK as people are using their credit cards less this year compared to 2008, says a nationwide survey conducted by NEMS market research on behalf of Prepaid Services Company Ltd.

The survey shows that 28 percent of the 500 people asked say that they are using their credit card much less or not at all in 2009 compared to last year – as opposed to just seven percent who say that they use their credit card more often. One in three of all the people asked (34 percent) said that they would use cash online if it were as easy as doing so over the counter. 

A contributing factor in shaping such trend is the current economic situation and the fact that people are becoming increasingly cautious with their money. 

“Obviously some changes have taken place in the past months,” he said, “and if people are wary about using cards online for whatever reason, be it safety from fraud or simply because they want to monitor their online spending, they should have other options.” 

The survey also revealed that women appear to have become far more reluctant to use their cards in contrast to men. 31 percent of women have either reduced their credit cards spending or stopped it entirely as opposed to 24 percent of men who have done the same. 

The results also indicate the industries in which customers would prefer to spend their money when shopping online. In total, 68 percent of those who have access to the Internet said they’d buy flights and 71 percent would use it for travel, suggesting that these industries in particular have a lot of room for alternative payment methods. 

“The figures show that the number of people looking to benefit from bargains only offered on the Internet, such as buying air tickets from low cost airlines, is increasing,” said David Hunter, CEO of Prepaid Services Company Ltd. “We choose to operate in travel and other retail industries simply because it’s where people want to shop. Allowing people to pay in cash for the things they want to purchase online means everybody benefits, the retailer and the customer.” 

Cash-Ticket is the latest offering from Prepaid Services Company Ltd. The prepaid voucher allows consumers to purchase flights, ticket orders and online shopping without having to provide personal bank details. 

Read more: alternative payment method