Trends in the E-Payment Market

The offered payment methods in online shops are critical success factors.

For avoiding shopping on the Internet to fail at the virtual checkout, dealers must offer a wide range of payment solutions. For each online merchant the choice of payment methods is a critical decision that may have an impact on sales. The best choice depends on the need for security, cost efficiency and customer acceptance. However, few traders know the cost the involvement of the various payment options causes.

Due to the increasing competition in the German online market, it becomes even more important for providers to understand the needs of customers. The best choice of offered payment methods depends on the need for security, cost efficiency and customer acceptance. 66% of the surveyed online retailers prefer prepayment as a payment method. In 2008, the e-payment system Paypal was implemented in almost half of all surveyed online stores. However, nearly 85% of European e-commerce transactions were processed 2006/2007 with a credit card, while just over 8% paid by direct debit.

This report covers the main e-payment trends in Germany, including the usage and adoption of payment methods, the favorite payment methods, the influence of payment on success of online shops, the costs of the different payment methods and many more aspects, which can be found in the table of contents. The report is only available in the German Version.

From market research firm yStats.com

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1. Online Banking: Payments in Transition (2009)
- New entrants, the reinforcing pricing pressure, new regulatory requirements and the high initial costs for the introduction of SEPA payment instruments are current challenges in the banking sector.

2. Influence of the Payment Methods on the Success of Online Stores (2009)
- Due to the increasing competition in the German online market, it becomes even more important for providers to understand the needs of customers.

3. Implemented Payment Methods in German Online Shops, in % (2008)
- In 2008, the e-payment system Paypal was implemented in almost half of all surveyed online stores.

4. Subscribed Payment Methods in German Online Shops, in % (2008)
- 66% of the surveyed online retailers prefer prepayment a payment method.

5. Costs of Using different Payment Methods (2009)
- How successful a web shop is, also depends on the offered payment settlement. However, few traders know the cost the involvement of the various payment options causes.

6. Payment Methods as Success Factors of Online Shops (2009)
- More and more companies sell their products over the Internet. Multiple factors determine the success. In addition to aspects such as price, good service and costs, the offered payment methods play a significant role.

7. The Cooperation of Online-Shops and Payment-Service-Providers (2009)
- The avoidance of defaults is for most web companies the largest role in shaping their settlement processes. In the payment processing, online merchants can take a lot of preventive measures to improve security.

8. Successful and Innovative Payment-Methods (2009)
- For avoiding shopping on the Internet to fall at the virtual checkout, dealers must offer a wide range of payment solutions. Innovative payment procedures are gaining ground.

9. Cell Phones as alternative Payment Method to Chash and Card Payment
- Whether in the online shop to parking meters or mass transit - Mobile payment as payment method is growing in popularity.

10. Choosing Payment Methods for the Online-Shop (2008)
- For each online merchant the choice of payment methods is a critical decision that may have impact on sales. The best choice depends on the need for security, cost efficiency and customer acceptance.

11. Entry of Deutsche Bank in the E-Payment Market (2009)
- Deutsche Bank seeks to play their size advantage within the German card services and designates itself as one global clearing provider with top positions in the three main currencies in the world.

12. Usage of Payment Methods in E-Commerce in Europe, in %, incl. Credit-Cards, Debit, Maestro, Giropay and Offline-Payments (2006/2007)
- Nearly 85% of European e-commerce transactions were processed 2006/2007 with a credit card, while just over 8% paid by direct debit.

13. Chargeback-Quotes by Credit Card-Transactions in %, incl. Transactions up to 10 Euro, 10 to 100 Euro, 100 to 500 Euro, and over 500 Euro (2006/2007)
- The chargeback rates for credit card transactions over 500 Euro fell 2006/2007 down to 0.8%.

14. News on the E-Payment Provider Payment Network (incl. Interview) (2009)
- According to Christoph Klein, CEO of Payment Network, competition in the market for online commerce has become harder and forced some companies into insolvency.

15. Relationship between Customer and Online Retailer in E-Payment (incl. Interview) (2009)
- According to Arnulf Keese from Paypal Germany the main characteristics simplicity, certainty and speed are a prerequisite for success of the payment system of in the e-payment market.

- Deutsche Bank
- PayPal
- Payment Network