Fear of fraud is not enough to keep U.S. shoppers from storing their credit card information online. According to a new report from CreditCards.com, 94 million Americans have their card information stored online for future purchases. That's 2 out of 3 digital shoppers.
Over 14 million shoppers always save their card information online, no matter where they are shopping.
The rate of credit card usage definitely varies by generation. Shoppers born between 1925 and 1945 are twice as likely to store their data, with as many as 21% always saving their payment information. For baby boomers and Generation X, the number of shoppers that save their information is only about 7%. Why? It seems that the Silent Generation tends to be more trusting. Also, age makes it harder for them to get up and get their wallets.
"I was surprised that the Silent Generation was twice as likely as any other age group to store their information," CreditCards.com Senior Industry Analyst Matt Schulz told FierceRetail. "Traditionally, this age group has been the least willing to embrace online shopping, so the fact that they’d be willing to take the next step and store their valuable information on shopping sites was a real eye-opener."
However, younger consumers still shop online more than the older generations. One in 4 members of the Silent Generation shops online compared to 3 out of 4 millennials.
Higher earners tend to use the internet more for shopping. Families earning $75,000 or more a year are twice as likely to shop online as those making less than $30,000. People who graduated from college shop twice as much online than those without a college degree.
Looking at racial and cultural groups, 57% of Hispanics have never used the internet or a mobile app to shop, compared to 33% of whites and 48% of blacks.
People with kids are more likely to shop online than those without kids, 70% versus 58%.
And what are shoppers buying? The highest category is electronics, 33%, with people going online always or mostly online for these items. The second biggest category is clothing, 22%, followed by furniture, 6%, and groceries, 4%.
"Whether they happen in-store or online, high-profile data breaches make people think twice about what they do with their credit card information, and that’s a good thing. People should treat their card info like gold because that’s basically what it is for bad guys. When in doubt, don’t give it out," Schulz added.
Despite the risks, Schulz believes that more people will choose to store their data in the future, as they are willing to exchange risk for grater convenience.