eBillme(TM) Online Spending Index Shows Deep Impact from Credit Crunch on Holiday Shopping

WILMINGTON, Del.--(BUSINESS WIRE)--The impact of the credit crunch is expected to effect holiday shopping as projected consumer spending online remains steady at $100 - $250 on average. This is according to the eBillme Online Spending Index, a quarterly survey examining consumer online spending. The survey is commissioned by eBillme, the payment option that enables consumers and small businesses to use online banking to pay now, pay securely, and use available funds. Index results for the fourth quarter show that the credit crunch is causing shoppers to reduce their credit card usage and impacting consumer access to credit resulting in a shift to cash alternatives. Thirty-one percent of respondents indicated that they would purchase more online if they could better control their finances and pay with cash; an opportunity for online merchants to optimize checkout with cash alternatives.

“The consumer sentiment is not in favor of a positive Q4”

The eBillme Online Spending Index, conducted by Javelin Strategy and Research and released quarterly by eBillme, polled 1,600 consumers to measure projected online spending for the quarter and the influencing factors including the economy, available payment options, security, and financial control. This quarter, the Index also surveyed consumers about their holiday spending.

According to the Q4 data, the credit crunch is continuing to impact consumer use and access to credit.

34 percent of consumers are closer to their credit limit than a year ago.
45 percent of consumers surveyed have used their credit card less often over the last 90 days in favor of non-credit payment options.
55 percent of respondents indicated that their available credit has decreased this holiday season as compared to last year.
48 percent of consumers are delaying purchases due to uncertainty in the economy.

“The consumer sentiment is not in favor of a positive Q4,” says Marwan Forzley, President and CEO of eBillme. “The market has shifted, and it is strategic for the long term benefit of eCommerce that merchants invest in cash-like payment options to appeal to the changing dynamics of consumer behavior. It is evident from the data that the credit crunch is having a profound impact on consumers. This is an opportunity for e-tailers to respond to the situation by strategically offering checkout options that support financial control and debt management.”

This quarter’s Index also surveyed respondents about the upcoming holiday shopping season. Forty-six percent of consumers prefer to avoid Black Friday in-store shopping in favor of shopping online. Thirteen percent of respondents plan to do most of their shopping on ‘Cyber Monday,’ the unofficial start of the online holiday shopping season.

eBillme and Javelin Strategy and Research will be presenting a Webinar to discuss the research findings and consumer trends from the data. The Webinar will be presented on Thursday, November 13, 2008 at 1PM EST. To register, please visit http://tinyurl.com/5neucp.

For more information or to sign up to receive future editions of the eBillme Online Spending Index, please contact Alicia Buonanno at Alicia@GregoryFCA.com or 610-228-2096.

About the Index

The Index is based on data collected from an online consumer survey deployed in August 2008, with a sample size of 1,608 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 ±4.4 percentage points at the 95% confidence level.

The next Index will be released in January, 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, reducing the security risks of shopping online for both consumers and retailers. No financial data is exposed to the retailer, 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 cash for their purchases at their bank, credit union, or bill pay portal, with the security and convenience of online banking. eBillme allows retailers to access the over 84 million Americans who use online banking. For more information, please visit us online at www.eBillme.com or our blog, http://blog.ebillme.com/.