UK Consumers Spent 2.4 Billion Online Last Quarter

Visa credit cardholders in the UK spent over Stg 2.4 billion online in the first quarter of 2004, a 123 per cent increase on the same period in 2003, according to Visa EU figures. Online spending by consumers within Europe is typically doubling each quarter and year-on-year, particularly in the grocery sector, where sales have nearly trebled in the past year as online supermarket shopping grows in popularity. Internet-initiated utility bill, tax and insurance payments also grew by a factor of four to five in the past year, with books and CDs retaining their established popularity in the eCommerce sector at growth rates of 116 per cent.

UK consumers made 159 per cent more travel and tourism bookings online in Q1 2004, reflecting a wider pattern of increased eCommerce across Europe, with Spain’s online buying activity growing by 166 per cent, Italy’s by 144 per cent, and France’s, by 140 per cent. Germany achieved eCommerce growth of 83 per cent, with Visa EU’s Bernard Ovink noting the “healthiest post-Christmas online sales figures for several years”. To continue Europe’s eCommerce momentum, Hugo Bottelier, of Visa EU, advised banks to create a secure environment for Internet consumers to use their payment cards, while talking up the value of the Verified by Visa authenticated payment system in facilitating secure eCommerce.

Visa EU predicts UK retailers to save Stg 55 million per year by using Verified by Visa, which is currently rolling out across Europe after an initial launch to e-tailers in April 2002. Visa also expects disputed online transactions in Europe to drop by 80 per cent, since its Verified by Visa program resolves the issue of card-not-present (CNP) transactions being more prone to fraud. With CNP fraud in Europe predicted to increase as chip & PIN payments roll out, Visa is anticipating greater demand for its Verified by Visa solution, which recently won the 2004 Lafferty European Credit Card and Consumer Finance Award.

http://www.epaynews.com/index.cgi?su...2215212&block=

Even more reason for us to start targetting European surfers with payment options other than dialers :)

Looks like the majority of them are getting more comfortable using online services :)

Regards,

Lee