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Innovative payment methods reshape the global digital payment landscape

A new market report from yStats.com, an E-Commerce and mobile payment market intelligence specialist based in Hamburg, titled “Global Online Payment Methods: First Half 2017,” focuses on the variance of payment preferences and the rise of innovative digital payment methods across the globe. According to the findings in this report, consumers in emerging markets outpace advanced economies in adopting new payment solutions, such as mobile payments.

Credit cards and digital payment services are the top two payment methods used by online shoppers worldwide, according to a survey cited in this report by yStats.com. Debit cards, cash on delivery and bank transfers make up the rest of the top 5, with significant variance among regions and countries. For instance, digital buyers in the world’s largest E-Commerce market, China, use third-party E-Wallet solutions such as Alipay more than any other method, while consumers in Sweden would rather pay by invoice, and those in Brazil via credit card installments.

Another important finding contained in yStats.com’s report concerns the spread of innovative digital payment methods, such as mobile payments. International surveys cited in this report point to emerging markets as global leaders in adopting mobile payment and mobile money solutions. Emerging economies, including India, Indonesia, China, Turkey and Kenya among others, occupied 9 out of top 10 positions in a ranking of countries where Internet users are most likely to use mobile payment services in 2017. Driven by this high demand, FinTech companies in Asia expect an annual return on investment five percentage points higher than the average across all global regions.

Some major advanced online markets are also not far behind. For example, in the United States, mobile wallets are growing in number and spurring in-store, remote and P2P mobile payment transactions. Meanwhile, Europe is introducing another innovative payment type – instant payments. Following the change in the EU regulations, instant payments are projected to reach a double-digit share of E-Commerce spending no later than 2022.

The yStats.com report also reveals that payment security and alternative payment methods are important drivers of future global E-Commerce growth. Among those Internet users who do not yet shop online, nearly one-half give lack of trust as their main reason, while around one in five cite inability to make payments online.