Hamburg based E-Commerce and Online Payments intelligence organization yStats.com has released a new publication: “Global Online Payment Methods: Full Year 2014”, which reports on the growth of digital payments worldwide. While both online and mobile payment values are on the rise, mobile outpaces the rest of the digital payments market. However, the preferred payment method used in online shopping varies widely by different countries and regions.
Online and mobile payments worldwide are forecasted to top three trillion Euros in the next five years. Mobile payment is the growth leader of the online and the total payments market, with further growth expected following the launches of varying mobile payment solutions, including Apple Pay. Fast and one-touch checkout is a trend on the global online and mobile payment market, with one-touch solutions released by Amazon, PayPal and Apple Pay. Another trend is large payment companies preparing to separate from their E-Commerce parent companies. EBay announced plans to spin off PayPal, while Alibaba revealed that it will let Alipay go public after Alibaba’s own IPO. The players that have intensified their efforts on the payments markets in 2014 are social networks and messengers, with Twitter, Facebook and Snapchat launching peer-to-peer payments.
Preferences for payment methods in different B2C E-Commerce markets worldwide have interesting local twists. With a few exceptions, in North America and Western Europe cards seem to dominate, while in emerging markets a number of alternative payment methods together with cash on delivery rival the credit cards. For example, in China, online and mobile payments are dominated by local third party payment providers, while in the USA credit and debit cards together accounted for more than two-thirds of payments in 2013. Another major online retail market, the UK, was also dominated by credit and debit cards in terms of payment methods in 2014. However, Germany falls out from this trend, with invoice remaining the leading payment method in B2C E-Commerce sales and PayPal increasing its share. In Russia cash on delivery was ahead of credit card usage in online shopping and alternative payments such as PayPal and online banking show dynamism. However, in another emerging European market, Turkey, card payment dominates and grew rapidly in 2014.
Other regions also show diversity in terms of online and mobile payment methods used. In Latin America, credit cards are rivaled by the local banking method Boleto Bancario in Brazil and by cash on delivery in Mexico. Online shoppers in Africa’s largest B2C E-Commerce market, South Africa, showed preference for both credit cards and bank transfer for payment, as revealed in recent surveys. Meanwhile, across the Middle East, cash on delivery was still used by the majority of online shoppers, but in the region’s major market, the UAE, credit card was slightly ahead of cash in terms of usage.