When they are confronted with two merchants who offer the same product at the same price, consumers say the two factors that influence them most are payment security and payment choice, according to a PayPal-sponsored study conducted by JupiterResearch.

More than one-half of respondents said that the security of their financial information was the deciding factor when they made purchases. An additional two-thirds said they felt more secure when they didn't have to enter any financial information to make their purchases.

"Today's consumers demand security and convenience when they shop online, and merchants must answer with an extremely safe, fast and easy buying experience," said Cliff Hopkins, senior director of PayPal merchant services.



Some respondents considered what types of payments merchants accepted before they chose a site on which to make a purchase. So merchants that don't let some consumers pay with their desired method don't have a chance of a sale with those consumers.



JupiterResearch conducted a related study with Ipsos Insight last July. Respondents to that study said that they used payment services such as Google Checkout or Bill Me Later rather than credit cards for several reasons. Security topped the list.



Javelin Strategy & Research predicts that such alternative payment methods will account for 11% of all online payments in the US by 2012, from 5% in 2007. US consumers will still use credit cards and debit cards for the vast majority of their online payments in 2012.