Money News
Just released figures (for 2006) from APACS, the UK payments association, reveal that in the past 5 years the greatest proportion of new internet banking users has been in the over-55 age group. Stats show the number of adults in the UK using online banking increasing by 174% from 6.2 million in 2001 to 17.0 million last year - including a 350% increase in usage amongst the over 55s.
In contrast, the growth in telephone banking has been less pronounced in recent years. Indeed, in December last year APACS announced that for the first time the number of people using online banking exceeded those using telephone banking.
Meanwhile, the popularity of online shopping continues to grow - the number of adults shopping online having more than doubled in the last 5 years, from 11 million in 2001 to over 28 million last year. Or put another way, an increase of 157%. The most popular sectors in terms of the number of people buying online in 2001 were books, CDs, travel and clothes, and those remained the most popular sectors in 2006.
Unlike on the high street where the debit card reigns, the credit card is the most popular online payment method, with 252 million transactions last year, an increase of 29% on the previous year. The preference for using this type of card is probably because of the increased protection credit cards provide.
Sandra Quinn of APACS makes the point that the internet has become part of our everyday lives and we increasingly rely on it to manage our finances, pay our bills and buy our weekly supermarket shopping. While confidence is growing in internet security, everyone needs to do some basic things to make sure they stay safe online.
"By following simple tips such as making sure your computer has up-to-date anti-virus software and a personal firewall installed, you can minimise your chances of being a victim of online fraud.
"Similarly, a good way to help keep your card safe from being used fraudulently on the internet is to sign up for Verified by Visa and MasterCard SecureCode - you simply register a private password with your card company and use it when you shop online at participating retailers," says Quinn.
29 August 2007 © Moneyextra.com
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