South Africa's online cross-border online spend is expected to show a net increase for the 2015 period, says a PayPal and First National Bank study.
The research, conducted by Ipsos, surveyed 501 South African Internet users between the ages of 18 and 55 about their online shopping habits. In terms of the study, cross-border spend refers to South Africans that make online purchases across international lines.
According to the study, 22% of cross-border shoppers are expected to spend more, 65% of the respondents plan to spend the same, and 14% of online buyers are expected to spend less. The study, however, does not reveal the expected net increase for online cross-border purchases by South Africans.
Efi Dahan, regional director for Africa and Israel at PayPal, says: "Advancement of technology is helping to open up commerce opportunities for everyone across borders, anywhere, anytime and via any device."
Up to 46% of South African online shoppers say they already shop outside the country, with Europe and North America being the most popular regions for cross-border purchases.
As many as 79% of online shoppers in South Africa could be cross-border shoppers in the near future, says the study.
However, according to respondents, security remains a barrier to cross-border online shopping.
Seventy-five percent of online shoppers who currently do not shop cross-border say payment security is a key barrier. Eighty-one percent of non-cross-border online shoppers expressed worry that delivered goods would not come as described when ordered.
"Online security matters," says Dahan.
"The fact that PayPal does not share financial information with the seller when authorising a transaction reassures consumers that their financial details are more secure. PayPal also offers buyer protection for eligible purchases and can help protect consumers in cases where the purchased goods didn't reach them or are not as advertised ? a big concern among South African consumers," he explains.
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