Internet banking steams ahead

by Gill Montia

Story link: Internet banking steams ahead

APACS, the UK body that represents organisations dealing in payment services, has published 2006 figures relating to the use of Internet banking.

The data reveals that in the past five years, the number of adults in the UK using online banking increased by 174% from, 6.2 million in 2001, to 17.0 million in 2006.

In terms of age groups, the steepest rise was with the over-55s, where a 350% increase occurred during the five year period.

Telephone banking has continued to decline. In December of 2006, APACS reported that for the first time, the number of people banking online exceeding those using a telephone banking service.

The figures come alongside similar increases in online shopping, where the numbers have doubled in the last 5 years, from 11 million in 2001, to over 28 million in 2006.

Online shoppers prefer to use their credit cards rather than debit cards, with a 29% increase in this type of transaction in 2006, to 252 million.

Debit cards are still more widely used on the High Street and the increase in the use of credit cards on the Internet is probably related to the levels of protection credit cards provide against fraud.

However, APACS makes the point that whilst consumer confidence in Internet security is growing, it is important to make sure computers have the latest anti-virus software and a personal firewall installed.

Internet shoppers can also sign up for Verified by Visa and MasterCard SecureCode.

Both provide a password-protected identity-checking service that reduces the risk of shopping online with certain retailers.