RealTime IT News

Report: Online Credit Card Transactions Doubles in a Year

The number of U.S. adults using credit cards to purchase goods and services online more than doubled between 1998 and 1999, according to a new research report.

The report from Cyber Dialogue said that by the third quarter of 1999, 19.2 million adults used their credit cards to make online transactions, compared to 9.3 million in 1998 and only 4.9 million in 1997.

Cyber Dialogue's survey also found that Visa is the most common card used by adults who complete purchase transactions online. Nearly 70 percent of online purchasers who use credit cards online report using a Visa card, while one-third use MasterCard and 15 percent use American Express.

Visa retained a more than 50 percent market share of online consumer transactions, while just over one-quarter of transactions are completed with MasterCard, 12 percent with American Express and six percent with Discover.

"The massive surge of credit card use online is an indication that consumers are fast becoming completely comfortable with making purchases online," said Liz Melcher, executive vice president of Cyber Dialogue.

"The findings also suggest that credit cards have established themselves as the new online currency when it comes to buying goods and services of any value."

The findings are from Cyber Dialogue's American Internet User Survey, consisting of interviews with 1,000 Internet users and 1,000 nonusers. Database marketing company Cyber Dialogue provides tools, data and services for senior marketing professionals.