Are you trying to decide if alternative payment methods (APMs) are right for your ecommerce business? Well, you’re on the right track. Alternatives to traditional credit card transactions are becoming a go-to way for digital merchants to boost revenue, expand markets, and reduce fraud exposure. Check out these ecommerce payment stats and facts:

Consumers Need Payment Alternatives for Digital Content.

• Nearly 30% of American consumers said they didn’t own a credit card in a February 2010 survey—a 10% jump from June 2009. (CreditCards.com)
• 17 million American adults do not have a bank account, relying instead on check-cashing services. (The Wall Street Journal)
• 21 million Americans are considered “underbanked.” These consumers have a checking account but often use payday services and car title loans. (The Wall Street Journal)
• According to a Javelin report, only 35% of merchants offer the alternative payment methods that make ecommerce transactions possible for those without credit cards or banking services. (Internet Retailer)

Credit Cards Cost Consumers.

• Credit card penalty fees cost consumers $20.5 billion in 2009. (CreditCards.com)
• Proposed caps on interchange (or swipe) fees charged to merchants could trigger banks to make up for lost revenue by charging consumers more. For example, in June Bank of America will start charging some users a penalty interest rate of up to 30% if they make late payments. (CNN Money)
• The proposed caps have also spurred banks to consider capping debit card transactions at as little as $50 or $100, even if the transaction is run as credit. (CNN Money)

Fraud Costs Consumers.

• 11.1 million U.S. adults were victims of fraud in 2009—the highest level since 2003. (CreditCards.com)
• Identity fraud victims are twice as likely as non-victims to change the way they shop and pay for purchases on ecommerce sites, according to Gartner research. (Information Week)

Fraud Costs Ecommerce Merchants.

• Ecommerce merchants lost $3.3 billion to fraud in 2009, translating into 1.2% of lost revenue. (CyberSource)
• The FTC estimates merchants lose 6x as much revenue from the fear of fraud than from actual fraud. (Ethoca)

It’s time to add alternative payment methods to your digital shopping cart. To learn more about what APMs will do for you, contact ILD Teleservices, an industry leader in LEC (or phone) billing, which allows customers to easily and safely charge purchases to their phone bill.