November 8, 2016
PayPal’s long head start in the online alternative payment space translates into far higher numbers of U.S. consumers who recognize and/or use the service compared to its competitors, according to research from Auriemma Consulting Group. The New York City-based payments consultancy compared digital wallet offerings from American Express, Mastercard, PayPal and Visa and found 77 percent of those polled were familiar with PayPal. Visa Checkout was the closest competitor, with 41 percent of respondents recognizing the payment method, followed by Masterpass and American Express Checkout, both recognized by 25 percent of respondents. PayPal also led the pack among active users. Of those who reported being familiar with each method, 62 percent of those polled said they used PayPal, 42 percent identified themselves as active Masterpass users, 39 percent are currently using American Express Checkout and 33 percent currently use Visa Checkout.
“PayPal is doing a lot of things right,” said Jaclyn Holmes, the ACG Senior Manager who directed the study. “They are the clear favorite in the online checkout space and have earned a positive reputation with consumers. The PayPal brand is valuable, so much so that just knowing Venmo was a PayPal product increases the likelihood of cardholders using the service.”
ACG also asked consumers who didn’t use any of the alternative methods examined why that was the case. The most popular reason respondents were not interested in any of the alternative online payment options—identified by 62 percent of those polled—was they were satisfied with their current payment methods (i.e., cards). An additional 42 percent chose the similar response, “seems unnecessary.”