Introduction
As online shopping continues to rise, security has become a crucial factor for both consumers and businesses. According to PayPal’s “Digital Payments Panorama for SMEs 2025” study, 94% of consumers prioritize security when making online purchases.
The Importance of Security for Consumers
Security plays a vital role in building consumer trust and influencing their decision to complete a transaction. However, three out of four online shoppers express concern about becoming victims of fraud.
Security’s Impact on Businesses
For businesses, security is essential for establishing long-term relationships and growing in the digital landscape. As consumers become increasingly concerned about protecting their information, providing robust security measures is no longer optional but a strategic necessity.
For businesses, ensuring security means addressing any potential issues, instilling confidence, and eliminating fear, while for consumers, it opens the door to more streamlined transactions and exploring new payment methods.
Security Measures Implemented by Businesses
The PayPal study reveals that businesses are prioritizing security, with 52% implementing encryption certificates to ensure all card and password information is secure.
- 48% focus on real-time transaction monitoring to detect unusual behavior
- 46% require customers to verify their identity through a second factor, such as text messages, biometrics, or authentication apps
However, security measures vary depending on business size. Medium-sized businesses tend to favor multi-factor authentication, like text messages via Google, while smaller enterprises prefer end-to-end encryption as a more accessible and effective way to safeguard data.
Digital Wallets: Allies in Reducing Risks
While traditional credit and debit cards remain the primary payment method for online shopping, digital wallets are gaining traction as a means to reduce transaction risks.
- 49% of businesses and 43% of consumers value digital wallets for minimizing the risk of physical cash loss or theft.
- 45% of sellers and 34% of buyers highlight the added security provided by digital wallets through encryption and biometric authentication.
Despite their benefits, digital literacy and familiarity pose challenges. 48% of survey respondents are unaware of how to use digital wallets, and 34% of sellers feel unfamiliar with them.
