Global Online Payment Methods: Second Half 2017

  • ID: 4471940
  • Report
  • Region: Global
  • 176 pages
  • yStats GmbH & Co. KG
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Digital Payment Methods Surge in Global Online Retail

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The new publication, “Global Online Payment Methods: Second Half 2017” summarizing trends in payment methods in online retail. The report contains a prediction that early in the next decade the share of B2C E-Commerce paid for by E-Wallets will surpass that of credit or debit cards.

Cash on delivery and plastic cards have long been the dominant payment methods globally for online retail purchases, but in Europe and Asia digital alternatives such as PayPal and Alipay are already leading the traditional payment methods. A projection included in the yStats.com report shows the share of credits and debits cards decreasing to less than a quarter of global online sales by 2021, while digital wallets will account for about half of E-Commerce payments by that time. Of course, there are exceptions to this trend: In countries including France and the USA consumers seem to persist in utilizing plastic when paying for online purchases, and in the Middle East and Eastern Europe, shopper concern over payment security makes cash on delivery the predominant payment method. However, in China, the world’s largest online retail market, online payment by third-party payment providers and mobile payment are growing at vertiginous rates tilting the global total to digital wallets.

In addition to the E-Wallets, another alternative payment method seeing rapid growth not only in China, but globally is mobile payment. The publication reports that the highest mobile penetration rate is in Asia, followed by the Middle East and Africa and Latin America. Though lagging behind growth rates in emerging markets, competition among mobile wallet providers is also contributing to growth in North America and Western Europe.

Questions Answered in this Report

  • What are the key online and mobile payment trends worldwide?
  • Which payment methods are preferred by online shoppers in 30+ countries?
  • Which factors influence the choice of payment methods?
  • How is mobile payment evolving in various regions and countries?
  • What is consumers’ attitude to online and mobile payment security?
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FEATURED COMPANIES

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1. Management Summary

2. Global Developments
Breakdown of E-Commerce Sales by Payment Methods, in %, 2021
Top Two Payment Methods Preferred in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, 2016 & 2017
Penetration of Bank Account Holders Willing to Share Personal Financial Data with Third-Party Providers to Use Their Services, in %, by Selected Countries, August 2017
Share of Internet Users Who Believe That Mobile Payment is Not Secure, in %, October 2016
Mobile Payment User Penetration, in % of Internet Users, by Regions, Q4 2015 & Q2 2017
Apple Pay User Penetration Compared to Overall Mobile Payment User Penetration, in % of Internet Users, by Penetrated Markets, Q2 2017
FinTech Adoption Rate, in % of Internet Users, by Selected Countries, 2017
Most Used FinTech Services According to Internet Users, in %, 2017
Most Relevant Emerging Technologies for Large FinTech and Financial Companies to Invest In, in % of Respondents in Each Group,  April 2017
Top 10 VC-Backed FinTech Unicorns by Valuation, in USD billion, Q3 2017

3. Asia-Pacific
3.1. Regional
Breakdown of E-Commerce Sales by Payment Methods, in %, 2017e
Breakdown of General Payment Methods Used Most Frequently, in % of Consumers, August 2017
3.2. Advanced Markets
3.2.1. Japan
Online and Mobile Payment Trends, January 2018
Payment Methods Used in E-Commerce, in % of Online Shoppers, 2016
Awareness and Usage of E-Money Services and Smartphone Payment Services, in % of Smartphone Users, November 2017
Most Used Smartphone Payment Services, in % of Smartphone Payment Users, November 2017
3.2.2. South Korea
Daily Average Personal Credit Card Payment Value by Major Consumption Types, incl. Online and Home Shopping, in KRW billion, H1 2016 - H1 2017
Daily Average Value of Mobile Card Payments, in KRW billion, H1 2015 - H1 2017
Top 5 Mobile Payment Services by Payment Volume, in KRW billion, January-August 2017
3.2.3. Australia
Breakdown of Online Payments by Payment Method, in %, 2013 & 2016
Breakdown of Online Payments by PC/Tablet and Mobile, in %, 2013 & 2016
3.3. Emerging Markets
3.3.1. China
Online and Mobile Payment Trends, January 2018
Number of Online Payment Users, in millions, and Penetration, in % of Internet Users, 2012 – 2016 & June 2017
Third-Party Online Payment Volume, in CNY trillion, by Two Comparative Estimates, Q1 2016 – Q2 2017
Breakdown of Third-Party Online Payment GMV by Players, in %, by Two Comparative Estimates, Q2 2017
Number of Mobile Payment Users, in millions, and Penetration, in % of Mobile Internet Users, 2014 - 2016 & June 2017
Third-Party Mobile Payment Volume, in CNY trillion, by Two Comparative Estimates, Q1 2016 – Q2 2017
Breakdown of Third-Party Mobile Payment GMV by Players, in %, by Two Comparative Estimates, Q2 2017
Payment Methods Used for In-Store Purchases, in % of Internet Users, June 2017
Selected Mobile Payment Services Used Regularly to Make Payments, in % of Urban Consumers, 2017
3.3.2. India
Share of Urban Online Shoppers Who Switched from Cash on Delivery to Online Payment Methods Following Demonetization, in % of Online Shoppers, 2017
Breakdown Payment Methods Preferred in E-Commerce, in % of Urban Online Shoppers, 2017
Share of Digital and Mobile Wallets in E-Commerce Sales, in %, 2013 & 2017e
Value of Payment Transactions by Selected Non-Cash Payment Methods, in INR billion, and Volume, in millions, incl. Mobile Wallets, FY 2014-2015 - FY 2016-2017
3.3.3. Indonesia
Top 3 Payment Methods Used in E-Commerce, in % of Internet Users, 2016
3.3.4. Singapore
Share of Cards and Digital Wallets in E-Commerce Sales, in %, 2013 & 2017e
Share of Credit Card Holders Who Used Mobile Wallets to Make Payments from Credit Card, 2016 & 2017
3.3.5. Thailand
Payment Methods Used in E-Commerce, in % of Online Shoppers, July 2017
3.3.6. Malaysia
Payment Methods Used in E-Commerce, in % of Online Shoppers, February 2017
3.3.7. Vietnam
Payment Methods Used in E-Commerce, in % of Online Shoppers, 2015 & 2016

4. Europe
4.1. Regional
Top 10 Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016 & 2017
Concerns That Internet Users in the EU Have About Using The Internet for Online Banking or Buying Things Online, in % of Internet Users, June 2013 & June 2017
Overview of PSD2 Implementation Timeline, January 2018
4.2. Advanced Markets
4.2.1. UK
Online and Mobile Payment Trends, January 2018
Top 3 Payment Methods Used in E-Commerce, in % of Internet Users, 2017
Top 3 Reasons for Checkout Abandonment, in % of Internet Users, 2017
Share of Consumers Willing to Give Online Retailers Permission to Initiate Payments Directly From Their Bank Account Using Apps or Websites, in %, by Total Consumers, Millennials and Generation Z, August 2017
Reasons for Not Shopping Online, incl. Payment-Related, in % of Adults Who Have Not Purchased Online, by Age Group, Q1 2017
Card-Not-Present Purchase Fraud Loss on UK-Issued Cards, by E-Commerce, Mail Order and Telephone Order and Total Remote, in GBP million, and Share of Total Card Purchase Fraud Loss, in %, 2011 - 2016 & H1 2017
Proximity Mobile Payment Users Number, in millions, and Penetration, in % of Smartphone Users, 2016 -2021f
4.2.2. Germany
Online and Mobile Payment Trends, January 2018
Payment Methods Used in E-Commerce, in % of Online Shoppers, May 2017
Payment Methods Offered, in % of Top 1,000 Online Shops, 2015 & 2016
Most Important Payment Trends for the Next 3 Years According to Online Merchants, in % of Online Merchants, 2017
Breakdown of Implementation of Express Checkout Solutions, in % of Online Merchants, 2017
Breakdown of Optimization of Payment Process for Mobile, in % of Online Merchants, 2017
Share of Consumers Who Have Used Payment via Smartphone, in %, and Share of Non-Users Who Could Imagine Paying With a Smartphone in the Future, in %, April 2017
4.2.3. France
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
Breakdown of Main Barriers That Make Consumers Hesitant to Purchase Online, in %, by Total Population and Online Shoppers, June 2017
Mobile Payment User Penetration, in % of Smartphone Users, March 2017
4.2.4. Spain
Payment Methods Used in E-Commerce, in % of Online Shoppers, 2016 & 2017
Breakdown of Factors Most Important in Online Payment Methods, in % of Online Shoppers, October 2017
4.2.5. Italy
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
Breakdown of Awareness and Usage of New FinTech Services, in % of Internet Users, 2017 
4.2.6. Netherlands
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
4.2.7. Sweden
Payment Methods Used and Preferred in Online and Mobile Shopping, in % of Online Shoppers, Q2 2017
Awareness and Usage of Mobile Payment Solutions, in % of Internet Users, Q2 2017
4.2.8. Switzerland
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
Mobile Payment User Penetration, by Current User and Potential Use, in % of Consumers, August 2017
4.2.9. Belgium
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
4.3. Emerging Markets
4.3.1. Russia
Payment Methods Used in E-Commerce, in % of Active Internet Users, H1 2017
Payment Methods Used in E-Commerce, in % of Online Shoppers, 2016 & 2017
Breakdown of Last Online Purchase by Payment Method, in %, 2016 & 2017
Breakdown of Awareness of Cryptocurrencies, in % of Adults, July 2017
Breakdown of Perception of Cryptocurrencies, in % of Adults Who Heard About Cryptocurrencies, in %, July 2017
4.3.2. Poland
Payment Methods That Encourage Online Shoppers to Purchase Online, in % of Online Shoppers, April 2017
4.3.3. Turkey
Number of Domestic E-Commerce Transactions with Bank Cards, in millions, and Value, in TRY million, Q1 2015 – Q3 2017
Number of Cross-Border E-Commerce Transactions with Domestic Bank Cards, in millions, and Value, in TRY million, Q1 2015 – Q1 2017
4.3.4. Czech Republic
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017

5. North America
5.1. Regional
Share of Consumers Using Mobile Payment Apps at Least Weekly, by Apps from Retailers and Other Apps, 2016 & 2017
Breakdown of Current and Planned Mobile Payment Solutions Acceptance, in % of Retailers, February 2017
5.2. USA
Online and Mobile Payment Trends, February 2018
Breakdown of Payment Methods Preferred in E-Commerce, in % of Online Shoppers, February 2017
Ways in Which Fear of Hacking Has Influenced Online Shopping Behavior, in % of Online Shoppers, January 2017
E-Commerce Website Types Most Trusted with Financial Information When Shopping Online, in % of Online Shoppers, January 2017
Share of Consumers Who Are Worried About Their Personal Information When Using a Mobile Payment App, in %, 2015 – 2017
Awareness and Usage of Emerging Technologies in Shopping, incl. Mobile Payment, in % of Consumers, July 2017
Mobile Payment Transactions, in USD billion, 2011, 2016 & 2021f
Mobile Wallets Used, in % of Internet Users, July 2017
Mobile Payment Apps Used for Making Payments In Store, in % of In-Store Mobile Payment Users, February 2017
Mobile Payment Apps Used for Preordering Food or Coffee, in % of Users, February 2017
P2P Mobile Payment Users, in millions, and Penetration, in % of Smartphone Users, 2016 -2021f
P2P Payment Services Used, in % of Users, 2017
Voice Payment Users, in millions, and Penetration, in % of Adults, 2017 - 2022f
Breakdown of Voice Assistants Trusted to Securely Make a Payment, in % of Adults, April 2017
5.3. Canada
Top 3 Payment Methods Preferred in E-Commerce, in % of Respondents, March 2017
Breakdown of E-Commerce Sales by Payment Systems, in %, 2015 & 2016
Breakdown of Total Payment Volume, in millions, and Value, in CAD million, by Payment Methods, incl. Online Transfers, 2015 & 2016
Share of Online Shoppers Who Have Used Mobile Payment or Digital Wallet Service to Make a Purchase, in %, 2016 & 2017
Share of Cardholders Who Loaded Credit/Debit Card Information on Their Mobile Phone/Wallet, in %, 2017 
Awareness of Contactless Payment Methods, in % of Credit/Debit Cardholders, H1 2017
Breakdown of Contactless Card Payment Users and Apple Pay Users by Age Group, in %, Q2 2017
Share of Smartphone Users Indicating Security Concerns as a Hindrance to Making Mobile Payments, in %, by Age Group, May 2017

6. Latin America
6.1. Regional
Use of Second Factor Authentication Systems in E-Commerce, incl. Methods Used and Attitude, in % of Banked Online Shoppers, by Selected Countries, 2017
6.2. Brazil
Share of Top 10 B2C E-Commerce Payment Methods of Orders Placed and Approved Orders, in %, and Approval Rate by Payment Method, in %, Q1 2017 
Breakdown of the Number of Payment Installments Used, in % of Online Shoppers, 2016 & 2017e
Factors Important for the Decision to Purchase in E-Commerce, incl. Payment-Related, in % of Online Shoppers, April 2017
Payment Methods Used in M-Commerce, in % of Mobile Shoppers, September 2017
6.3. Mexico
Online Payment Methods Used in E-Commerce, by Device Used, in % of Online Shoppers, August 2017
Offline Payment Methods Used in E-Commerce, by Device Used, in % of Online Shoppers, August 2017
Share of Online Shoppers Who Stored Information With an Online Merchant and Type of Information Stored with an Online Merchant, in % of Online Shoppers, 2016 & 2017
Reasons for Not Storing Credit/Debit Card Information With Online Shops, in % of Online Shoppers, 2016 & 2017
Top 5 Most Important Aspects in E-Commerce Payments, in % of Online Shoppers, February 2017
Number of Authorized Payment Transactions on E-Commerce Websites, in millions, Value, in MXN billion, and Authorization Rate, in % of Transactions and in % of Transaction Value, by Credit Cards and Debit Cards, Q1 2016 – Q3 2017
Chargeback Rate, in % of Number of Authorized Payment Transactions on E-Commerce Websites and in % of Their Value, by Credit Cards and Debit Cards, Q1 2016 – Q3 2017
6.4. Columbia
Payment Methods Used in E-Commerce, in % of Online Shoppers, August 2016
Top 5 Motivations for Online Shopping, in % of Online Shoppers, August 2016

7. Middle East
7.1. Regional
Top 3 Barriers to Online Shopping, in % of Local Millennials in the GCC Who Did Not Shop Online, July 2017
7.2. UAE
Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016
7.3. Saudi Arabia
Payment Methods Used in E-Commerce, in % of Online Shoppers, May 2017
Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016
Breakdown of Payment Methods Most Used in Online Shops According to E-Commerce Merchants, in % of Surveyed E-Commerce Merchants, June 2017
Perception of Increase in Credit Card Payments in Online Shops Over the Previous Year According to E-Commerce Merchants, in % of Surveyed E-Commerce Merchants, June 2017
Reasons for Not Offering Credit Card Payments in Online Shops, in % of Surveyed E-Commerce Merchants Who Do Not Accept Credit Card Payments in Their Shops, June 2017
7.4. Israel
Perceived Disadvantages of Online Shopping, incl. Payment-Related, in % of Internet Users, September 2016
Share of Adult Internet Users in Israel Who Use Mobile Wallet Apps to Purchase Goods or Services At Least Once a Month, in %, May 2017
7.5. Iran
Market Shares of the Top 3 Online Payment Gateway Operators, in %, December 2016
7.6. Qatar
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016
7.7. Kuwait
Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016
7.8. Lebanon
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016
List of Selected Payment Providers, by Category, 2016
7.9. Bahrain
Barriers to Shopping Online, incl. Payment-Related, in % of Non-Online Shoppers, 2016

8. Africa
8.1. South Africa
Breakdown of Payment Methods Preferred in E-Commerce, in % of Online Shoppers, August 2017
Breakdown of Factors that Would Encourage to Shop Online More, incl. Payment-Related, in % of Online Shoppers, August 2017
Breakdown of Barriers to E-Commerce, incl. Payment-Related, in % of Internet Users Who Do Not Shop Online, August 2017
Breakdown of Types of Purchases for Which Non-Online Shoppers Would be Most Comfortable to Make Their First Online Payment, in % of Internet Users Who Do Not Shop Online, August 2017
8.2. Nigeria
Number and Value of Internet (Web) and Mobile Payment Transactions, in millions and in NGN billion, 2011- 2016 & H1 2017
Breakdown of Experience with Mobile Money, in % Adults, 2016
Main Purposes of Using Mobile Money Services, in % Mobile Money Users, 2016
8.3. Egypt
Top 3 Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016
8.4. Kenya
Mobile Payment Statistics, incl. Number of Transactions, in millions, Value of Transactions, in KES billion, Number of Accounts, in millions, and Number of Agents, in thousands, 2008 – 2017

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FEATURED COMPANIES

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E-Wallets to Overtake Payment Cards in Global B2C E-Commerce

The rise of alternative payment methods represents one of the top payment trends in global B2C E-Commerce. According to one projection cited in the report, the share of credit and debit card payments in worldwide online sales could decline to less than one-quarter in four years’ time. E-Wallets, such as PayPal and Alipay, are expected to dominate online payments with a sales share of close to one-half by 2021. 

In China, the world’s largest E-Commerce market, online and mobile payments processed by third-party services count several trillions of U.S. dollars per year, and are still growing at double-digit rates for online and triple-digit rates for mobile payments. In Europe, digital wallet is the most preferred online payment method on a regional average, although in multiple countries such as France, Belgium and Sweden, payment cards remain in the lead. Also in the U.S. a higher share of online shoppers preferred to pay by filling out a standard credit card form than using a digital wallet such as PayPal, as of 2017. 

Overall, the report reveals that preferences of online shoppers with regard to payment methods vary by country. For example, many consumers in Brazil use local banking method Boleto, with this method ranking second only to credit cards. In Germany, more shoppers pay by PayPal or invoice than by credit card, while in Indonesia digital buyers would rather pay via ATM. In several countries of Eastern Europe and Middle East cash on delivery remains the top payment choice of online shoppers, as consumers are vary of online payment security or lack means to pay over the Internet. 

Another finding of the report is the growth of mobile payments worldwide. Among the global regions, the highest mobile payment penetration rate among Internet users was in Asia-Pacific, followed by Latin America and the Middle East and Africa, as of mid-2017. Also in North America and Europe, mobile payment usage has grown, with competition among mobile wallet providers increasing. 

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  • Adyen
  • Ant financial services
  • Apple
  • China UnionPay
  • Google
  • iDeal
  • Japan Post Bank
  • Kakao
  • Klarna
  • Line
  • MasterCard
  • Mizuho Financial Group
  • Mobikwik
  • Naver
  • Osaifu Keitai
  • Oxxo
  • PayPal
  • Paytm
  • Rakuten
  • Samsung
  • Swish
  • Tencent
  • Visa
  • Wal-Mart
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