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Clicking with dollars : how consumers can pay for purchases from E-tailers

  • Stacey L. Schreft

The Internet is often referred to as the world’s largest mall. About half of all adults in the United States have made a purchase online. Worldwide, online shopping is considerably greater—and cybershopping is expected to continue to grow as more households become connected to the Internet and as improvements in mobile telecommunication technology allow wireless Internet access anywhere and anytime.> A byproduct of the dramatic increase in online shopping has been a heightened demand for convenient and secure online payment methods. Consumers make almost all their online purchases with credit cards. But study after study continues to identify concerns about the safety of providing credit-card numbers and personal information online as the biggest barrier to cybershopping. Without further improvements in consumers’ online payment options, e-tailing might not realize its full potential.> Schreft surveys and assesses what is new about the options consumers have to make payments at Internet retailers. She discusses how making payments in cyberspace differs from making payments in the bricks-and-mortar world and describes the use of traditional payment methods for cybershopping. She also examines the new means of payment designed especially for use online.

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Article provided by Federal Reserve Bank of Kansas City in its journal Economic Review.

Volume (Year): (2002)
Issue (Month): Q I ()
Pages: 37-64

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Handle: RePEc:fip:fedker:y:2002:i:qi:p:37-64:n:v.87no.1
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  1. Kenneth N. Kuttner & James J. McAndrews, 2001. "Personal on-line payments," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 35-50.
  2. Stacey L. Schreft, 1997. "Looking forward : the role for government in regulating electronic cash," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 59-84.
  3. James J. McAndrews, 1997. "Network issues and payment systems," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 15-25.
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