Retailers may well be increasingly using the internet in an effort to survive the credit crunch, according to an industry expert.

Companies may look to increase their use of the internet during challenging economic times because it is a "very cost-effective" means of doing business, said the external affairs director at Equifax, Neil Munroe.

He added that diversification may also assist the bigger firms in the current climate.

Mr Monroe commented that channelling business through the web is "very low-margin, as you don't [need] to have all the retail environment to support it".

He continued: "There's been a growth in some of the larger websites in their development and internet-based sales."

In related news, software security firm Gemalto recently reported that Barclays is to enable internet users to use a hand-held chip-and-pin device in more online transactions.

The bank is extending use of the PINSentry card-readers to transactions between £1,000 and £10,000 after reporting no fraud whatsoever among the first one million users.

A recent Connect survey found that the two major concerns about outsourcing services like IT support were 'loss of control' (56 per cent) and 'budget over-runs' (43 per cent)