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, and $1 of every $6 originated from a mobile device. Smartphones, tablets, and social media offer new channels for online shopping, and retailers are ensuring that consumers’ purchases are arriving at lightning speed. This report evaluates the actual and forecast changes in the e-commerce market, tracks the payments mix from 2012 through the forecast year of 2018 and identifies key drivers of market change. This report highlights the role of the mobile channel within e-commerce and includes a market-sizing for mobile online retail payment activity. Online share and transaction growth of credit cards (network and private label), debit cards, online alternative payments like PayPal and Amazon Payments, online credit services like Bill Me Later, prepaid cards, and gift cards are also evaluated.
33 pages; 17 charts/graphs
E-commerce transactions constitute a growing share of the overall retail market, prompting merchants and payments processors alike to expand their platforms for card-not-present (CNP) payment acceptance and processing. While most e-commerce processors and platforms facilitate traditional methods of payment, today’s offerings differ greatly in international processing focus, fraud and security features, mobile capabilities, reporting and other back-end processing functions. This report scores seven leading e-commerce platform providers — some of which offer multiple platforms for e-commerce transactions — identifying each platform’s key product features and examining each provider’s value proposition, market positioning, and differentiation.
39 pages; 29 charts/graphs
Consumer mobile purchasing surged to an all-time high, reaching almost $60 billion and demonstrating triple-digit growth in 2013. Consumers are increasingly turning to tablets and phones for purchasing despite the fact that many sites are not ideally set up yet for mobile devices — and creating opportunity for vendors who are prepared for the onslaught. Vendors and merchants are now challenged to seamlessly integrate mobile into the online and in-store search and shopping experience. Consumer spend on tablets surpassed phones for the first time in 2013 as tablet adoption swelled. This report provides an in-depth study of the mobile purchasing market, including dollar and consumer market sizing of online, app and proximity payments, a five-year forecast of mobile proximity payments, tablet vs. phone dollar market sizing, and frequency and size of median purchases, as well as commerce by device type. It also looks at what factors are holding consumers back from greater mobile purchasing and defines strategies to excel in this expanding market.
29 pages; 20 charts/graphs
Biometric authentication has been a fixture of the public imagination for decades through frequent appearances in futuristic popular fiction. In the year 2014, these solutions may finally make the breakthrough from symbols of cutting edge technology which is constantly looming on the horizon to practical, accepted features of robust authentication systems. Several aspects of the consumer technology environment have conspired to facilitate biometrics’ deployment at the same time as providers are working out the kinks which have impeded their effectiveness. Mobile devices place biometric delivery mechanisms at consumers’ fingertips, while 3D-Secure provides a platform to implement biometric authentication for online transactions. The major obstacle to the proliferation of biometrics will be consumer trust; fewer than half of consumers trust any business or institution with their sensitive biometric data. However, financial institutions, which face this challenge to a much lesser degree than retailers and other types of institutions, can partner with merchants to pave the way for wide scale acceptance.
33 pages; 11 charts/graphs
Although social networks are a 21st-century creation, many of today’s consumers would be hard-pressed to remember a time before Facebook, Twitter, LinkedIn, or Google+. The worldwide adoption of social networks has altered the payment ecosystem: Social networks have now become an additional arm of payments and retail, rather than just a virtual place for individuals to socialize. Twenty-six percent of all consumers have made a purchase on a social network, and this trend has significant implications for e-commerce and traditional retailers, payment providers, issuers, and technology providers. This report explores the growth of social networks and the subsequent influence of social media in the payment realm, including changes to retail shopping, consumer behavior, and payment transactions.
32 pages; 16 charts/graphs