Alternative online payment is the fastest-growing payment category worldwide and will match the number of transactions made by credit and debit cards by 2017.
According to WorldPay’s Your Global Guide to Alternative Payments report, online purchases made using alternative payments (any form of payment other than credit or debit cards, also known as e-wallets) will rise to 59% of all payments in 2017, from 43% in 2012. Card payment market share (including credit and debit) will decline from 57% in 2012 to 41% in 2017.
The report outlines that in the UK and US new e-wallet products from traditional card providers such as V me by Visa are increasingly being accepted by merchants. On a global level, solutions such as Alipay and PayPal continue to dominate the e-wallet market.
The report also breaks data down by country, giving market summaries for each. UK results show that British customers mainly use their customers mainly use cards to pay for goods and services (78%), with e-wallets the next most popular method (16.2%).
PayPal handles 13% of these e-wallet transactions.
In China, 44% of transactions are made using e-wallets, with Alipay handling the greatest market share at 30% of total payments.
Kevin Dallas, chief product and marketing officer, ecommerce at WorldPay, says of the findings: “Emerging economies, such as the Bric countries and the next layer of emerging markets, are seeing particularly fast growth of alternative payments. This means the complexity of the payment landscape will increase further.
“Merchants will need to ensure they understand diverging regional and sector trends. It’s crucial that online merchants work with a payment provider with specialist knowledge of the complicated alternative payment landscape.”