Shoppers’ reliance on credit cards to pay for online purchases is shrinking

A recent report by Forrester Research Inc. focusing on retailers` efforts to build successful loyalty programs also turned up some new data on consumers’ growing use of credit card alternatives in paying for purchases made online.

“In addition to debit cards and cash, the use of new online payment methods like PayPal is increasing, creating less reliance on credit cards in the past,” states the report, “Getting Retailers started with a loyalty program.” The report made the point to illustrate that store charge cards don’t always help to foster better customer relationships because they don’t always capture all customer transactions.

To show that credit card payments don’t provide a complete view of a customer’s interactions with a retailer, Forrester tapped into its own data from the first quarter to show that while in the previous three months, 79% of consumers reported paying for online purchases with credit cards, the percentage of those who reported using PayPal was up to 43%. 39% of consumers surveyed said they used debit cards to pay for online purchases, while 10% used Bill Me Later. 8% reported using gift cards, while 7% sent a check in the mail, according to Forrester’s data.