Global Alternative Online Payment Methods: Full Year 2017

  • ID: 4594562
  • Report
  • Region: Global
  • 146 pages
  • yStats GmbH & Co. KG
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Online Shoppers’ Security Concern Drives The Adoption of Alternative Payment Methods

FEATURED COMPANIES

  • Amazon.com Inc
  • Deutsche Bank AG
  • Google LLC
  • Klarna Holding AB
  • Oxxo S.A.
  • PayU Group
  • MORE

Alternative payment solutions allay some security concerns for online shoppers, says report

The report, “Global Alternative Online Payment Methods: Full Year 2017,” researches synthesizing data regarding payment methods used by online shoppers worldwide. Among the trends revealed in the report is that credit card use in online purchases may take second place to alternative payment methods like E-Wallets within a few years.

Credit cards have been the primary payment solution for online purchases since the beginning of online commerce. However, projections cited in the new report indicate that by 2021, digital wallets and other alternatives will replace the dominance of plastic, thanks to the popularity of other methods in emerging markets as well as continued consumer concern over security of card account information when used online.

The acceptance of E-Wallets such as Alipay and PayPal in Asia, the largest and fast growing E-Commerce region contributes to the project dominance of alternative payment solutions within the next few years.  The report points out that while credit cards still dominate in Japan and South Korea, the wide acceptance of digital wallets and mobile payment in the populations giants China and India will contribute to toppling credit cards’ ranking.  In Europe also, while credit cards still lead in payment usage in some nations, on a regional level, digital wallets are the preferred payment method. Other alternatives to credit card use worldwide include bank transfer and cash on delivery.

Questions Answered in this Report

  • What are the leading alternative online payment methods worldwide?
  • How do they rank against credit card payments in global E-Commerce?
  • What are the key payment trends in the world's top 5 E-Commerce markets?
  • How does online shoppers’ preference for payment methods vary across the regions and countries?
  • What is the forecast for the share of alternative online payment methods in global E-Commerce by 2021?

 

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FEATURED COMPANIES

  • Amazon.com Inc
  • Deutsche Bank AG
  • Google LLC
  • Klarna Holding AB
  • Oxxo S.A.
  • PayU Group
  • MORE

1. Management Summary

2. Global Developments
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, Q1 2017
Breakdown of E-Commerce Sales by Payment Methods, in %, 2021f
Top Two Payment Methods Preferred in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, 2016 & 2017
Reasons For Not Shopping Online, incl. Payment-Related, in % of Internet Users Who Do Not Shop Online, Q1 2017

3. Asia-Pacific
3.1. Regional
Breakdown of E-Commerce Sales by Payment Methods, in %, 2017e
3.2. Advanced Markets
3.2.1. Japan
Online and Mobile Payment Trends, January 2018
Online and Mobile Payment Trends, August 2017
Payment Methods Used in E-Commerce, in % of Online Shoppers, 2016
3.2.2. South Korea
Payment Methods Used in E-Commerce, in % of Online Shoppers, October 2016
3.2.3. Australia
Breakdown of Online Payments by Payment Method, in %, 2013 & 2016
3.2.4. Singapore
Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016
Share of Cards and Digital Wallets in E-Commerce Sales, in %, 2013 & 2017e
3.3.  Emerging Markets
3.3.1. China
Online and Mobile Payment Trends, January 2018
Online and Mobile Payment Trends, August 2017
Breakdown of Payment Methods Used in E-Commerce, in % of Online Shoppers, 2016
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
3.3.2. India
Payment Methods Used in E-Commerce, in % of Generation Z Online Shoppers, June 2017
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
3.3.3. Indonesia
Top 3 Payment Methods Used in E-Commerce, in % of Internet Users, 2016
Breakdown of Main Purposes of Using Online Banking, incl. “Shopping Online”, in % of Users, March 2017
3.3.4. Thailand
Payment Methods Used in E-Commerce, in % of Online Shoppers, July 2017
Payment Methods Used in E-Commerce, by Number of Online Shoppers and Percentage of Online Shoppers, Q1 2016
3.3.5. Vietnam
Breakdown of Payment Methods Used in E-Commerce, in % Online Shoppers, August 2016
Payment Methods Used in E-Commerce, in % of Online Shoppers, 2015 & 2016
3.3.6. Malaysia
Payment Methods Used in E-Commerce, in % of Online Shoppers, February 2017

4.  Europe
4.1. Regional
Online Payment Regulatory Trends, July 2017
Breakdown of E-Commerce Spending in the EU by Payment Methods Considering PSD2 and Instant Payment Introduction, in %, 2012, 2017f, 2020f, 2022f, 2027f
Top 10 Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016 & 2017
Top 3 Criteria for Choosing a Payment Method, in % of Online Shoppers, 2016
4.2.  Advanced Markets
4.2.1.  UK
Online and Mobile Payment Trends, January 2018
Online and Mobile Payment Trends, July 2017
Breakdown of Payment Methods Preferred in E-Commerce, in % of Online Shoppers, February 2017
Top 3 Payment Methods Used in E-Commerce, in % of Internet Users, 2017
Top 3 Reasons for Checkout Abandonment, in % of Internet Users, 2017
4.2.2. Germany
Online and Mobile Payment Trends, January 2018
Online and Mobile Payment Trends, July 2017
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, by Ranked First and Ranked Between First and Fifth, 2016
Payment Methods Used in Online Shopping, in % of Online Shoppers, 2016
Breakdown of B2C E-Commerce Product Sales by Payment Methods, in %, 2015 & 2016
Factors Important to Online Shoppers When Choosing a Payment Method, in % of Online Shoppers, 2016
Payment Methods Offered, in % of Top 1,000 Online Shops, 2015 & 2016
Top 10 Most Known Payment Providers, in % of Smartphone Users, Q4 2016/Q1 2017
4.2.3.       France
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
Breakdown of Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016
Breakdown of B2C E-Commerce Product Sales, in %, 2016
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 Number of Online Purchase Transactions by Payment Methods, by Purchase of Physical Products and of Digital Goods and Services, in %, Q1 2017
4.2.6.     Netherlands
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
Breakdown of Online Purchases by Payment Methods, in %, 2015 & 2016
4.2.7.       Sweden
Payment Methods Used and Preferred in Online and Mobile Shopping, in % of Online Shoppers, Q2 2017
Breakdown of Payment Methods Preferred in E-Commerce, in % of Online Shoppers, Q3 2011 -2012, Q4 2013 - 2016
4.2.8.  Switzerland
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
Top 5 Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016
4.2.9. Belgium
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
Breakdown of Payment Methods Used in E-Commerce, in % of Online Shoppers, April 2017, and Change Compared to 2016 and 2011
4.2.10. Austria
Awareness and Usage of Payment Methods in E-Commerce, in % of Online Shoppers, January 2017
4.3. Emerging Markets
4.3.1. Russia
Payment Methods Used in E-Commerce, in % of Online Shoppers, 2014 – 2016
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 Used in E-Commerce, in % of Individuals, 2015 & 2016
Payment Methods That Encourage Online Shoppers to Purchase Online, in % of Online Shoppers, April 2017
4.3.3. Turkey
Payment Methods Used in E-Commerce, in % of Online Shoppers, January 2017
4.3.4. Portugal
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
4.3.5. Czech Republic
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017

5. North America
5.1. USA
Online and Mobile Payment Trends, February 2018
Online and Mobile Payment Trends and News About Players, August 2017
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
Digital and Mobile Payment Methods Used, in % of Online Shoppers, by Generation Y and Generation Z, March 2017
5.2. 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 Internet Users Who Installed an E-Wallet Mobile App, in %, by Age Group, April 2017

6. Latin America
6.1. Regional
Breakdown of E-Commerce Sales by Payment Methods, in%, 2017e
6.2. Brazil
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, June 2017
Reasons For Using Boleto Bancario, in % of Online Shoppers Who Use Boleto Bancario, July 2017
Breakdown of Online Shoppers Who Pay with Boleto Bancario by Gender and Age Group, in %, July 2017
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 
Payment Methods Used in M-Commerce, in % of Mobile Shoppers, September 2017
Breakdown of Payment Methods Used in the Last Online Purchase from International Site, in % of Cross-Border Online Shoppers, 2013 - 2016
Reasons to Give Up an Online Purchase, in % of Online Shoppers, June 2017
Factors Important for the Decision to Purchase in E-Commerce, incl. Payment-Related, in % of Online Shoppers, April 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
Payment Methods Used in E-Commerce, in % of Online Shoppers, December 2016
Reasons for Not Shopping Online, in % of Internet Users Who Do Not Shop Online, December 2016
Top 5 Most Important Aspects in E-Commerce Payments, in % of Online Shoppers, February 2017
6.4. Argentina
Breakdown of E-Commerce Sales by Payment Methods, in %, 2016
6.5. Colombia
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
Breakdown of Payment Methods Preferred in E-Commerce, in % of Online Shoppers in GCC, October 2016
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 Used in E-Commerce by Cash on Delivery and Credit or Debit Card, in % of Online Shoppers, March 2017
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
7.4. Qatar
Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016
7.5. Kuwait
Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2016
7.6. Lebanon
Payment Methods Preferred in E-Commerce, in % of 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
8.2. Egypt
Top 3 Payment Methods Preferred in E-Commerce, in % of Online Shoppers, 2016
8.3. Kenya
Breakdown of Payment Methods Preferred in E-Commerce, in % of Online Shoppers, November 2016

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FEATURED COMPANIES

  • Amazon.com Inc
  • Deutsche Bank AG
  • Google LLC
  • Klarna Holding AB
  • Oxxo S.A.
  • PayU Group
  • MORE

Online payment method rankings for nearly 40 countries worldwide, cited in the report, point to the increased usage of alternative methods, especially digital wallets. While credit cards topped the global ranking of consumer preferences in 2017, by 2021, digital wallets and other alternative means are projected to account for a much higher share of worldwide online sales than cards. The two main reasons for the alternative payments’ rise revealed in the report include their popularity in emerging markets and the growing concern of consumers in advanced economies over the safety of card information online.
 
The leading alternative online payment method, E-Wallet such as Alipay and PayPal, accounts for the dominant share of E-Commerce sales in the world’s largest region in online retail– Asia-Pacific. Despite being the most popular payment mean in countries such as Japan, South Korea and Australia, credit cards fail to grasp a higher share of the region’s ECommerce turnover due to the growing contribution to alternative payment methods’ share from emerging markets, most of all from China. Also in Europe, digital wallets lead the preference of online shoppers on the regional level, although credit cards account for most of online transactions in countries such as France and Sweden. Other popular alternative methods include cash on delivery, payment by invoice and via bank transfer.

In markets where credit cards traditionally hold the leading position, such as the USA, the use of alternative means of payment is on the rise. One of the factors behind this trend is consumers’ growing concern over the online security of credit card information. A recent survey from the USA, cited in the report, revealed that due to the fear of hacking, one-third of respondents never saved their credit card details on E-Commerce websites and a similar number only used PayPal or alternative trusted payment methods.

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  • Amazon.com Inc
  • Ant Financial Services Group
  • China UnionPay Co Ltd
  • Deutsche Bank AG
  • GMO Payment Gateway Inc.
  • Google LLC
  • iDEAL BV
  • Klarna Holding AB
  • MasterCard Inc.
  • One MobiKwik Systems Private Limited
  • Oxxo S.A.
  • PayPal Holdings Inc
  • PayU Group
  • Paytm Mobile Solutions Pvt. Ltd.
  • Samsung Pay Inc
  • Sofort AG
  • Tencent Holdings Limited
  • Visa Inc.
  • Walmart Inc.
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