In its second-largest acquisition, Amazon buys the company for $970 million.
Consumers who use single-use cards transaction more often and spend more online, says Orbiscom, provider of single-use card technology.
Even though there are more consumers shopping online today, credit card security is still an issue among shoppers, market participants say. New York-based Orbiscom, which has deals to provide single-use card technology for Discover, MBNA and merchant processor First Data Corp., says it sees shoppers buying more with single-use cards because they are more comfortable putting the numbers online. "The average ticket size is going up in excess of 23% and they transact 1.3 to 1.6 times more frequently per month because they have confidence in the security," Tom Seltzer, executive vice president of Orbiscom, says. "The ROI from more transactions and higher card balances is the real opportunity for merchants and card issuers."
A survey from the National Consumers League says 81% of consumers would use single-use cards. "We even heard from consumers who already shopped online but who liked the idea of single-use card numbers because they were still nervous about their card numbers online," says Susan Grant, vice president for public policy.