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Contact Centre: Popular purchase by phone
Telephone gains credit
New research commissioned by MasterCard highlights the growing popularity among British consumers for purchasing goods and services by telephone.
The research, conducted by independent research house KRC Research, shows that over the last 12 months, 79% of credit and debit cardholders in the UK have made a telephone order (TO) transaction, making an average of eight TO payments per person.
Debit and credit cards are the most frequently used payment method for TO transactions, with debit cards the most popular (50%) among consumers and credit cards used for 35% of transactions. 62% of consumers who have made a TO transaction say they now use this channel more frequently than a few years ago.
Commenting on the research Fikret Ates, Vice President Chip Product Management, MasterCard Worldwide said: "The telephone is a hugely important sales channel and merchants and other service providers should consider the merits of making it an integral part of their overall sales strategies."
Ates continued:
"There are a number of reasons for the popularity of the telephone, including personal contact and convenience. Our research showed that 88% of telephone ordering is done at home. Another key issue for consumers is security, with consumers seeing the telephone as one of the most secure sales media."
The telephone is used for a wide variety of transactions. Cardholders in the UK use it most to pay bills (17%) but it is also frequently used to order tickets, clothing, holidays and travel. 52% of consumers said their last purchase was worth £50 or less and 11% said their last purchase was worth over £500.
While new statistics from APACS, the UK payments trade association, show that total card fraud fell by 5% year on year, internet, telephone and mail order fraud now accounts for 46% of all losses in the UK.
The MasterCard research also shows that 34% of consumers worry about fraud when making a TO transaction and 30% said that fear of fraud deters them completely..
Ates said:
"The attitude of consumers to fraud is significant for merchants. Card-not-present transactions are growing in popularity and use of the telephone is a very important part of this dynamic. It is likely that the importance of the telephone in the overall sales mix will grow, with consumers increasing their average debit and credit card spend if they feel more secure.
"Fortunately, consumers' awareness and acceptance of potential fraud solutions for telephone transactions is high.
13 November 2006