When you think ‘financial’ you think a credit card, says ally financial
Posted April 19, 2020 11:14:33Financial companies and credit card companies are not only increasingly used by businesses to store and spend their money, they’re also increasingly seen as the financial infrastructure for online communities, like Reddit and Twitter, as well as a tool for online harassment, according to a new report by Ally Financial.
The study, conducted by the Center for Responsive Politics and the American Association of University Women, shows that nearly three-quarters of online businesses and online consumers use a credit or debit card, while nearly one-third use a prepaid debit card and about half use an e-wallet.
The survey of more than 4,000 people in the United States, Canada and around the world found that more than one in four American consumers used a credit, debit or prepaid card to pay for purchases, and nearly half of consumers used prepaid debit cards to pay online for purchases.
The report also found that online businesses use an average of nearly five times as many credit cards and about three times as much prepaid debit than offline businesses.
In terms of usage patterns, the study found that 70 percent of consumers have used a debit card to make purchases online, while 20 percent have used an e.g. credit card and 11 percent use a PayPal account.
The online financial services companies are often seen as a convenient way to store money in a secure way, and often have a very low cost, Ally Financial CEO and co-founder Mark O’Neill told ABC News.
For some, that’s true.
But for many, it’s a risky practice.
O’Neill said that he was surprised to see the prevalence of online credit cards in his research.
“The more people use the financial services industry, the more people are being targeted online,” he said.
“That is a very troubling trend.”
He also said that it’s important to note that people who use online credit card are less likely to commit fraud than those who don’t.
The majority of online card users do not use the cards in any way to hide their identity, he said, and the vast majority of the time they’re using the cards to make transactions.
However, O’Neil also said the study shows that many online businesses are becoming more sophisticated about their online services.
“There is a sense among some people that there’s something a little bit sinister about a company that says, ‘We will do your shopping for you,’ and that is simply not true,” he told ABCNews.
“There are companies out there that really are out there doing great things.
If you are really looking for a credit service, look for one that really understands your needs, and does it the right way.”
O’Neil said that in addition to the financial institutions, online businesses also see many other forms of online harassment and bullying.
“If you look at the social justice issue, one of the most important things is that there are people out there who are being abused online,” O’Connor said.