Concerns of fraud are driving consumers away from using their credit cards for small online purchases. Instead, consumers are gravitating towards charging to their phone bills. Merchants benefit when shoppers are complete their purchases via phone due to a convenient, speedy checkout.

Having consumers abandon an online store at the point of checkout because of security worries is a problem merchants need to solve.

In a poll by Javelin Strategy & Research and PaymentOne, 79% of respondents were likely to buy more digital goods if there was a securer and quicker payment method that didn’t include credit and debit cards.

While there are usually plenty of online payment options at the checkout screen, another method is being tossed into the fray for small purchases: carrier billing.

me and the sysop/Flicker source

Online shoppers would essentially add purchase charges to their phone carrier or broadband provider. The thought of hackers obtaining a phone number appears to be less threatening compared to a credit card number – if possible prank calls are preferred over possible fraudulent charges.

The appeal lies heavily on a convenient way to pay for small online purchases. The lack of quick payments have driven away enough potentials for merchants to notice the need to fix this dilemma.

The Javelin poll found that 61% of respondents had canceled or abandoned the checkout process when asked to enter payment information. More than half of respondents cited fraud protection and privacy as primary traits of an attractive payment alternative.

If online merchants offer carrier billing, Americans who have mobile phones but don’t necessarily have a credit card or debit card will be able to participate in the e-commerce economy.

Furthermore, many online merchants already require a phone number to complete purchase orders. Customers may simply have to check a box saying, “Bill to Phone Carrier” – eliminating the need to fill in all that lengthy credit card information.

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