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Online Shoppers Relying Less on Credit Cards

Consumers are more and more using credit-card alternatives to pay for online purchases, reports InternetRetailer, citing a recent report by Forrester Research. "In addition to debit cards and cash, the use of new online payment methods like PayPal is increasing, creating less reliance on credit cards than in the past," states the report.

According to data from the first quarter, 79 percent of consumers reported paying for online purchases with credit cards, and the proportion of those who had used PayPal was up to 43 percent. Some 39 percent of consumers surveyed said they used debit cards to pay for online purchases; 10 percent used Bill Me Later features; 8 percent reported using gift cards, and 7 percent sent a check via mail.

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