The data breaches that have grabbed headlines and seemed to increase in frequency during the pandemic have kept consumers on their toes when it comes to storing data with merchants.
Amid the roughly 400% increase in cyberattacks estimated by the FBI in 2020 that targeted personal data, it should be noted that a majority of consumers who were buying more goods and services amid the pandemic (85%) will keep at least some of those online commerce activities in place even as the pandemic ebbs and restrictions lift on physical activities.
But caution abounds.
In fact, as detailed in a recent report, “The Privacy Paradox,” done in conjunction between PYMNTS and Very Good Security, 55% of the more than 2,200 consumers surveyed do not store their payment details with merchants due to security concerns. Quite simply, they are worried that their data will be stolen.
The survey found that the concerns cut across all demographics. Roughly a third of older respondents (Boomers) and a quarter of younger cohorts (such as millennials) say they are afraid that someone will get access to their account information. Boomers are relatively less concerned than younger consumers that someone will steal their money.
Consumers vote with their feet when it comes to trust and data. The study found that a majority of consumers would leave their platform providers if they had concerns about how data were being used. A full 56% of consumers would be very or extremely likely to abandon an online platform if they were concerned that the platform might not be vigilant about protecting data.