WILMINGTON, Del. - April 15, 2009 - Consumer spending online, which has shown more immunity to the market conditions, is projected to increase eight percent this quarter to $267 compared to an average of $247 last quarter. This is according to the eBillme™ Online Spending Index, a quarterly survey examining consumer spending trends online. The survey is conducted by Javelin Strategy & Research and released quarterly by eBillme, the payment option that enables consumers and small businesses to use online banking to pay now, pay securely and use available funds.
Despite the slight uptick in online spending, the outlook for offline retail sales remains bleak. This quarter’s Index shows a decline in consumer confidence as we approach the 100-day mark for the Obama administration. Consumer sentiment towards the economy in general and confidence in overall spending has decreased from last quarter. 39 percent of consumers reported having more confidence in the economy with the 100-day anniversary of the Obama administration approaching. This is down from 51 percent who expected to have more confidence once the new administration began. And when it comes to confidence in overall spending, 19 percent feel more comfortable increasing their everyday spending this quarter, a decline from 28 percent who expected to feel comfortable increasing spending during Q1.
“The slight uptick in online spending this quarter is further evidence that the online retail sector is better withstanding the economic conditions,” says Bruce Cundiff, Director of Payments Research and Consulting for Javelin Strategy & Research. “Overall, consumers are still spending more responsibly and with caution. As we approached inauguration day during Q1, confidence was strong and consumers were hopeful. The continued economic strain, increasing job loss, and consumer debt over the last 90 days has taken a toll on confidence this quarter.”
The eBillme Online Spending Index polled 1,200 consumers to measure projected online spending for the quarter and the influencing factors including the economy, security, and financial control. This quarter’s Index also surveyed respondents about Mother’s Day spending to learn what type of holiday retailers can anticipate this year.
- 20 percent of respondents plan to make their Mother’s Day purchases online this year.
- 9 percent of consumers anticipate spending more this year for Mother’s Day.
“Overall cautious spending is carrying over from Q1,” says Marwan Forzley, President and CEO of eBillme. “Purchase delays and spending trends have remained steady as a result of faltering confidence. Over half of consumers surveyed are still delaying purchases due to uncertainty in the economy. Shoppers remain hesitant to spend extravagantly and when they do, they are making decisions to spend more responsibly using cash. We are seeing the demand continue to increase for cash checkout online as shoppers focus on limiting debt.”
eBillme and Javelin Strategy & Research will be presenting a Webinar to discuss the research findings and consumer trends from the data. The Webinar will be presented on April 30th at 1PM EST. To register, please visit https://www2.gotomeeting.com/register/676120659.
For more information or to sign up to receive future editions of the eBillme Online Spending Index, please contact Alicia Buonanno at or 610-228-2096.
About the Index
The Index is based on data collected from an online consumer survey deployed quarterly starting in August 2008, with a sample size of 1,200 respondents. The survey targeted US adults (age 18 +) and was based on representative proportions of gender, ethnicity and income as compared to the overall US online population. Overall margin of sampling error is ±2.8 percentage points at the 95% confidence level.
The next Index will be released in July, 2009. Data from the Index will be posted on the eBillme website, http://blog.eBillme.com.
About eBillme
eBillme™ is the only online payment solution that extends the convenience of online banking to the merchant’s checkout process. The service enhances security for online shoppers, and enables merchants to increase sales while reducing transaction costs. No financial data is exposed and the payment transaction is securely transferred from the customer’s bank to the retailer’s bank. Consumers can shop online, by catalog or through call centers, and pay for their purchases at their bank, credit union, or bill pay portal using the security and convenience of online banking. For more information, please visit www.eBillme.com or eBillme’s Online Debt-Free Shopping Mall, www.ShopDebtFree.com.
About Javelin Strategy & Research
Javelin is the leading independent provider of quantitative and qualitative research focused exclusively on financial services topics. Based on the most rigorous statistical methodologies, Javelin conducts in-depth primary research studies to pinpoint dynamic risks and opportunities. Javelin helps its clients achieve their initiatives through three service offerings, including syndicated research subscriptions, custom research projects and strategic consulting. Javelin’s client list includes some of the largest banks, credit unions, card issuers, and technology enterprises in the financial services industry. For more information visit www.JavelinStrategy.com.
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