Celtic cubs queuing up online

21-03-2007

by Ciara O'Brien

Well-educated, single, 16- to 30-year-olds are dominating online shopping in Ireland, according to a new study.

More than half of the 1,000 online shoppers surveyed by Visa's online voucher firm 3V said they were single, with 27 percent educated to degree level and 24 percent currently finishing their studies.

The vast majority, 93 percent, said they have a bank or building society account, leaving us to ponder if the other 7 percent simply stuff the cash under their mattress. Almost half -- 46 percent -- have their own credit card, or can access one. Just over a third said that the 3V vouchers could be an alternative to getting a credit card, with security during online transactions acting as a major driver.

This could be a timely concern for consumers. Since the changeover to chip and PIN cards in high street stores, thwarted fraudsters may be turning to the internet.

Since 17 March, customers who try to bypass the PIN in high street stores run the risk of having their transaction declined by the bank, while unaware retailers leave themselves open to chargebacks if stolen cards are used fraudulently.

Criminals may now increasingly look to the internet therefore to carry out card fraud. According to figures from the ATM Industry Association, the level of "card not present" (CNP) frauds soared by more than 21 percent during 2006.

This could be a major deterrent to the burgeoning e-commerce space in Ireland as online shopping becomes increasingly popular with Irish consumers.

Some 62 percent of those surveyed said that they shop online at least once a month, while 43 percent said they splashed out online every month.

Seventeen percent buy from online retailers every week, while a hardcore 2 percent of shopping addicts said they buy over the internet every day.

It seems that internet shopping trips are less about the practical necessities and more for leisure and hobby purchases. Male shoppers surveyed bought CDs, DVDs and computer gadgets while female 3V customers splurged on holidays, flights, tickets and gifts.

Visa claims its 3V vouchers are proving popular, with 95 percent of respondents indicating they would continue to use the vouchers into the future. And it's a lucrative market; Visa currently estimates the prepaid voucher market to be worth EUR1.4 billion.

The age range of 3V customers appears to be slightly lower than your average internet shoppers -- possibly because the vouchers appeal to those who don't have, or can't get, a credit card.

A study published in January by researchers at Dublin City University found that 70 percent of users of an Irish e-commerce service were women aged between 30 and 50. These findings were described as "quite unusual" by researchers when compared to experience in Britain and the US.