Javelin Strategy & Research Reveals Consumer Adoption of Alternative Payment Platforms --PayPal, Amazon Payments, Google Checkout, Bill Me Later--are Going Mainstream
San Francisco, CA, March 5, 2014: The e-commerce market is evolving at a spectacular rate, and never before has it been more competitive. In 2013, consumers spent a total of $351.9 billion online. Today, Javelin Strategy & Research released Online Retail Payments Forecast 2013-2018 report which evaluates forecast changes in the e-commerce market, tracks the payments mix, and identifies key drivers of market change. Additionally, the report evaluates online share and transaction growth of credit cards, debit cards, online alternative payments like PayPal and Amazon Payments, online credit services like Bill Me Later, prepaid cards, and gift cards.
Do not be deceived by the use of "alternative" in online alternative payments, as these payment options have clearly become mainstream for online retail payments. Over 80% of online shoppers report that they have used an online alternative payment service (such as PayPal, Amazon Payments, or Google Wallet) for an online purchase in the past 12 months. And the reach does not stop there. Increasingly, platforms that were once exclusive to e-commerce are moving into physical stores. PayPal is now an accepted payment method at 18,000 physical stores (representing 23 retailers), relying on a cloud-based payment system where consumers can complete transactions using a PayPal card or a PIN code. Amazon is also looking to make the jump to brick-and-mortar payments, with early reports indicating that Amazon is looking to offer a digital wallet in conjunction with its Kindle tablets and credit card processing technology.
"It is no surprise that Amazon is following PayPal's example by entering the brick-and-mortar space, as PayPal is the far-and-away leader of alternative online payments," said Nick Holland, Senior Analyst of Payments at Javelin Strategy & Research. "For mainstream e-commerce players, the hybrid approach of online and brick-and-mortar presence will be critical for success. Consumers continue to prioritize the experience of shopping, leading to ultimate brand loyalty and overall convenience."
Javelin Strategy & Research's Online Retail Payments Forecast 2013-2018: Alternative Payments Go Mainstream report evaluates forecast changes in the e-commerce market, tracks the payments mix from 2013 through the forecast year of 2018 and identifies key drivers of market change. It is based on an online survey of more than 3,200 consumers, and Javelin's forecasting model.
Related Javelin Research
- E‐Commerce Platform Review: Fueling Online Shopping for Tomorrow
- Mobile Payments Market: Tablet Shopping Surges as Mobile Retail Sales Top $60 Billion
- Social Media Payments: Redefining Shopping for a New Era
About Javelin Strategy & Research
Javelin Strategy & Research, a Greenwich Associates LLC company, 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.