Ecommerce Director at Digi-Bee Ltd
15 July 2011 17:10pm
We only offer interest-free Direct-Debit as a payment method for the insurance we sell online.
We are considering enabling credit/debit card and/or PayPal.
The question is would you prefer to pay for your insurance by credit card or DD?
With credit card would come charges, the insurance wouldn't be 'continuous' and hence would not be as easy to renew.
Does anyone have any statistics or thoughts on DD vs credit card with regards to purchasing insurance?
CEO at Econsultancy
18 July 2011 22:17pm
I'd have to dig out the stats but, depending a bit by country/market, I'd be amazed if most people didn't prefer to pay by credit card rather than DD. You might understand 'continuous' as a benefit (certainly to you as a business as higher renewal/success rates) but all the evidence I've ever seen suggests people really don't want to give anyone 'direct access to their bank account' via online DD except for charities and a few 'essentials'. I'm sure you know that insurance is seen as a grudge purchase... ;)
If you're only offering DD payment then I'd wager you are losing a *lot* of sales as a result. PayPal, of course, also offer credit card transactions capabilities, not just PayPal payments.
19 July 2011 14:54pm
Hi Ashley, thanks for responding. I should have qualified that I was only referring to the UK market. I'd really appreciate it if you could dig up any stats you have. Thanks
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