E-commerce Market Surges to $318 Billion—Mobile Shopping a Game Changer

Dec 5, 2012

E-commerce Market Surges to $318 Billion—Mobile Shopping a Game Changer

Javelin’s Online Retail Payments Forecast Analyzes Mix of Traditional and Alternative Payments: 2012-2017

San Francisco, CA, December 5, 2012 – Buoyed by consumer optimism and a rebounding economy, the domestic online retail market grew by 13% this year and is expected to reach $318 billion by the end of 2012. E-commerce merchants saw a number of significant and positive changes including increases in average order value across all payment types. Javelin Strategy & Research’s latest report found increasing reliance on online alternative payments methods, especially credit services such as Bill Me Later, as well as increasing reliance on the mobile device.

Close to one out of every fifteen online purchases now originate from a mobile device, as this channel has experienced rapid adoption throughout the online retail sector. Use of alternative payments methods is also continuing to evolve and is being propelled by the online credit service Bill Me Later, which jumped from just 1% of consumers using the service in 2010 to 21%of consumers in 2012. While credit cards are still the go-to payment option for larger transactions, the average purchase amount using online credit service Bill Me Later experienced one of the largest increases this past year.

“Retailers are actively embracing alternative payments and the emerging mobile channel to capitalize on the current holiday season, said Beth Robertson, CCM, Director of Payments Research at Javelin. “Javelin expects to see significant growth rates for payments using both of these options through 2017.”

In addition to highlighting use of mobile device for ecommerce, Javelin’s 5th Annual Online Retail Payments Forecast 2012-2017 provides a comprehensive overview of the payments mix and trends influencing consumer use of major and store-branded credit cards, debit cards, online alternative payments methods, prepaid cards and gift cards for online purchases. The report is based on data collected online by Javelin from 3,000 consumers and also uses key secondary data from public sources to develop a forecast for online spending trends through 2017. The report is 20 pages long and includes 20 figures and a detailed profile of PayPal’s Price Matching program.

Learn More: Fifth Annual Online Retail Payments Forecast: 2012-2017: Mobile and Alternative Payments are Changing the Game

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About Javelin Strategy & Research
Javelin Strategy & Research provides strategic insights into customer transactions, increasing sustainable profits for financial institutions, government, payments companies, merchants and other technology providers. Javelin’s independent insights result from a uniquely rigorous three-dimensional research process that assesses customers, providers, and the transactions ecosystem.

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