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March 11, 2001 - E-Pass Washington

E-Commerce Grows Despite Persistent Concerns

A recent U.S. Census Bureau report shows e-commerce sales in the fourth quarter of 2000 rose by 67.1% over the previous year’s fourth quarter totals. While these numbers reflect a significant growth in online purchasing, e-commerce still lags far behind traditional brick and mortar stores.

According to the Bureau’s February 16th report, fourth quarter estimates for the year 2000 show e-commerce accounting for $8.686 billion of the $856.2 billion retail pie. While a 1% share may seem small, one must consider that the fourth quarter of 1999 saw only a 0.6% share for e-commerce – an increase of 67.1% in 2000.

During the whole of 2000, online sales accounted for 0.8% of total U.S. retail numbers. Consumers spent $25.8 billion via the internet in the past year.

The foremost obstacle to advancing online shopping is one of security. Consumers have over and over again voiced serious concern about the sanctity of credit card transactions in cyberspace. In response to these worries, some companies have begun offering credit cards that are essentially disposable – issuing a different card number for each transaction. Even if the number is intercepted it will be inoperable for any further transactions.

While this measure of security has substantially assuaged shoppers' fears about security, it has also frustrated many when the issue of customer service arises. Among the drawbacks to the disposable card system is the effort required by companies to track a specific transaction. Normally, credit card numbers are used as identifiers in assisting customers with questions about their purchases. With disposable numbers, the process of tracing orders back to the cardholder is much more difficult. Frustration may in fact be a more potent roadblock to online spending than any fear about security. 

E-Pass offers a solution to the disposable card problem. Only one number is needed, so businesses have no problem tracking a consumer's order. And with E-Pass's advanced user control, the card number is useless in anyone's hand but the owner's. With the comprehensive solutions E-Pass offers, it is certain that online shopping numbers will continue to rise.

 

For more information, please visit:

U.S. Census Bureau

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