Smart card transactions to increase rapidly

10/03/2000

smart cards and electronic wallet transactions over the Internet will jump in value,

The 'Real Numbers Behind E-Transactions, Fraud and Security' report found that credit cards account for 98.5 percent of all Internet transactions, but their dominance is set to drop to 90 percent by 2001, as new technologies emerge.

Smart cards and electronic wallet (software that stores and manages personal data necessary for buying online, ie. credit card numbers) transactions will jump in value from USD500 million this year to USD5.7 billion by the end of 2001, and will be worth a massive USD20 billion in value by 2002.

Automated check handling (ACH) will also become more widely used, rising in value from USD300 million this year to USD3.2 billion in 2001, and will be worth USD5.2 billion by 2002.

Mixed mode transactions consist of orders placed over the Internet, but not paid for online. They also include Web-generated orders made by phone, email, and fax, where sales are motivated or initiated through a website.

The study also notes that not all products are suited for online purchases, with two out of five b2b websites devoted to advertising and promotion, services that cannot be purchased by simply filling out a form.

Source: NUA Internet Surveys

Date of Article: October 2, 2000

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