Report: Alternative Payments More Popular than Card Payments Online by 2017
Jan. 23, 2014
Within three years alternative payments will eclipse card payments as the dominant way to pay online, according to a report yesterday from London-based e-commerce processor WorldPay. In “Your Global Guide to Alternative Payments (Second Edition),” WorldPay found card payments online, which accounted for 57 percent of transactions in 2012, will fall to 41 percent in 2017. Alternative payment methods (defined by the report as anything other than credit or debit cards including bank transfers, direct debits, e-wallets, mobile, COD and others) will rise to 59 percent of online transactions in the next three years. Part of the reason is the preferred payment methods in some of the fastest growing e-commerce markets are not cards.
“Emerging economies, such as the BRIC countries and the next layer of emerging markets, are seeing particularly fast growth of alternative payments,” said Kevin Dallas, chief product and marketing officer for e-commerce at WorldPay. “This means the complexity of the payment landscape will increase further. Merchants will need to ensure they understand diverging regional and sector trends in preferred methods of payment.”
The report predicts e-wallet transactions alone will equal the number of card transactions online at 41 percent, becoming the most popular method of paying online globally by 2017. Currently, PayPal is the most popular alternative payment method in the world with a market share of 57 percent. China’s Alipay is second at 20 percent.