Online and mobile payments worldwide are forecast to reach €3 trillion in the next five years, according to a report by Hamburg-based business intelligence organization yStats.com.
Mobile payment is the growth leader, outpacing 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. yStats reported.
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 Asia-Pacific region is expected to overtake North America to be the largest online retail market within a few years. In the region’s largest market, China, online and mobile payments are dominated by local third-party payment providers. The number of online payment users in China neared 300 million, while mobile payment users topped 200 million.
Japan has seen new mobile payment pathways launched this year, though the payment methods most used by online shoppers in Japan for the present are credit card and convenience store payments. In South Korea, government regulations and entrepreneurial innovations are furthering the growth of online payments. In Australia, online shopping remains the leading purpose for using credit cards.
In North America, credit card remains the leading payment method in the US, preferred by 48 per cent of online shoppers in 2014. Europe, the world’s third largest region by B2C e-commerce sales, shows wide diversity in terms of payment methods used in online shopping. Europe’s largest online market, the UK was dominated by credit and debit cards in terms of payment methods in 2014.
In Turkey, card payment dominates and grew rapidly in the first three quarters of 2014. In the Latin American markets, new regulations were adopted in 2013 and 2014 in Brazil, reflecting on the growth of online and mobile payments.
Credit cards were used most in online purchases in Brazil, followed by local method Boleto Bancario. Both cash and credit cards were used by online shoppers in Mexico frequently Mobile payments boom in countries like Kenya and Morocco, while in South Africa credit card, transfer and cash on delivery are the leading payment methods. (GK)