05 Dec - 2013

P2P trade limited by lack of security, poor quality payment methods

Research conducted by Swedish payment services company Trustly suggests that the primary reason that Swedish consumers do not buy goods on P2P sites, such as Blocket and Tradera, is sellers’ concern over how payments are made.

Despite the security measures that have been introduced to combat fraud in P2P commerce, Swedish consumers are still reluctant to buy goods from strangers. The survey shows that 55% of consumers have decided not to complete purchases due to concern over risks associated with a purchase. This is primarily the result of insincere sellers, or uncertainty around payment for distance transactions, where the delivery of goods and payment for them do not happen simultaneously.

Reasons that have stopped people from making purchases on P2P ad sites:

• Seller seems insincere, 40%

• Distance, goods must be sent and I was uncertain how payment would be made, 21%

• Seller requests pre-payment, 14%

• Seller refuses to release goods unless I collect them in person, 8%

• I do not understand how my payment options work, 6%

• Seller demands cash that I have difficulty in obtaining, 3%

• None of the above have stopped me from buying an item on a P2P site, 45%

“Together with the P2P commerce segment, we continuously work to improve the safety and security of transactions between private individuals. Trustly’s Direct Payment product, that has now been available to buyers and sellers on Blocket for a year, means that Trustly functions as a third party and identifies both buyers and sellers through their Internet banks; and we take on any potential risks in the payment process,” says Carl Henrik Somp, spokesperson at Trustly.

“We see a clear need for a convenient and secure payment service that eliminates the uncertainty associated with purchasing, and makes it possible for people to widen the geographical scope of their second-hand purchases. The second-hand market is good in many ways, but the survey highlights that the lack of security and good payment platforms undermine the second-hand market’s potential in Sweden. This affects rural areas especially hard, where the choice of second-hand goods in your immediate area is limited and distance purchasing is often the only option,” adds Somp.

Direct payment protects both buyers and sellers after they have agreed a sale; the “Pay for goods directly” button is located below the contact information in private advertisements on Blocket, up to a value of SEK 10,000. Buyers get their money back if goods are not received, and the seller is guaranteed payment. The transfer of funds is made directly in the advert, and the transfer is often made directly to the seller’s bank account. As a result, the payment service is secure and convenient for both parties. All you need is an online bank account with one of the eight banks that are supported by the system.

Trustly conducted the survey with Demoskop, one of Sweden’s most well-known consultancy companies in the marketing and societal segments. Some 1,000 people were interviewed for the survey, and more responses than those shown above were possible.

For more information, please contact Carl Henrik Somp, Trustly COO, on +46707742651, or at carlhenrik.somp@trustly.com.

Trustly Group develops secure, convenient and cost effective bank payment services for the Internet and mobile devices. Trustly's solutions attract global clients within three segments: P2P on online marketplaces, e-commerce and online-gaming. In 2013, Trustly was ranked as one of Sweden's ten fastest growing technology companies on Deloitte's Sweden Technology Fast 50 List. Trustly has some 40 employees and is headquartered in Stockholm. Trustly is a Swedish payment institution operating under the auspices of the Swedish Financial Supervisory Authority.

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