Alternative payment methods expand in B2C E-Commerce worldwide A new report by Hamburg-based secondary research organization yStats.com: “Global Alternative Payment Methods 2014“, reveals that alternatives to the traditional credit card are gaining a larger share of B2C Commerce worldwide. In the next several years, the total share of all alternative payment methods is expected to reach over 50% of B2C E-Commerce payments. Digital wallets and mobile payments are forecasted to show the fastest growth. Alternative payments also are going beyond online retail into omni-channel payments.

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Press Release
Hamburg, May 23rd, 2014
Alternative payment methods expand in B2C E-Commerce worldwide
A new report by Hamburg-based secondary research organization yStats.com: “Global
Alternative Payment Methods 2014“, reveals that alternatives to the traditional credit
card are gaining a larger share of B2C Commerce worldwide. In the next several years,
the total share of all alternative payment methods is expected to reach over 50% of B2C
E-Commerce payments. Digital wallets and mobile payments are forecasted to show the
fastest growth. Alternative payments also are going beyond online retail into omni-
channel payments.
The yStats.com report also finds that competition on the global online payments market is fierce,
with non-card companies expanding their alternative payment offerings and new players emerging.
Amazon launched the promotion of its Login and Pay processing service for online merchants, while
Google launched a prepaid card connected to Google Wallet and plans to expand its payment
services further. PayPal launched a new branding campaign with focus on mobile devices, while big
players Apple and Facebook are expected to join the pack of alternative payment providers. Alipay
claimed to become the largest third-party mobile payment provider in the world, having processed
over a hundred billion Euros of payments in 2013.
North America
In North America, cards accounted for
almost three quarters of B2C E-Commerce
transactions, with digital wallets being the
largest alternative payment. In the USA,
alternative payment methods expand to rival
cards in both online and offline retail, while a
digital currency trend also evolves. In
Canada, PayPal was the most preferred
payment method of all alternative methods,
but it was only in distant second to credit
card.
Latin America
Over half of B2C E-Commerce transactions in Latin America were split between various methods
alternative to cards. Alternative methods are still more important in Latin America, as the share of
population owing a bank product such as a credit card in 2013 surpassed 80% only in Brazil, yet
both banked and unbanked individuals shop online. In Brazil, Boleto Bancario was the second most
used method after bank credit card. In Argentina last year cash payments upon receipt or
collection and via the systems such as Pago Facil or Rapi Pago were second to online card
payments. In 2013, two thirds of B2C E-Commerce sales in Mexico were generated through credit
card payment, with cash on delivery in second place.
Europe
In Europe, the share of alternative payments, including mobile and e-wallets, is forecasted to reach
up to 20% of the total payments market by 2020, while the revenues of the alternative payment
industry are projected to grow by half. While cards account for more than half of B2C E-Commerce
in Europe, legislators in the EU are working on new e-payments regulations which will encourage
the growth of third-party payment providers.

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Looking at alternative payment practice by county, invoice accounted for the largest share of
interactive retail sales in Germany in 2013, followed by direct debit, while credit card accounted for
less than 20%. In 2013, alternative payment methods were preferred by a significant double-digit
share of online shoppers in the UK, though less than the share of those preferring to pay with
cards. In France, card remains the most preferred payment method in B2C E-Commerce, followed
by PayPal and similar services. In the Netherlands, the local online banking method iDeal
accounted for more than half of B2C E-Commerce transactions, while credit card was used in a
single-digit percentage of transactions.
In Russia, use of cards and alternative
online payments is on the rise, though
cash still remains the dominant payment
method in online shopping. In the Czech
Republic, among online payment
methods in B2C E-Commerce, bank
transfer was used twice as much as card,
while the most used method was cash on
delivery. In Poland, alternative payment
methods, led by bank transfer, were used
by online shoppers more than credit
cards.
Asia-Pacific
In the diverse Asia-Pacific region, digital wallets had a substantial share of total B2C E-Commerce
payments, though still behind cards. In Japan, B2C E-Commerce has a number of unique
alternative payment ways, such as Konbini, payment at convenience store. In China, the B2C E-
Commerce landscape is dominated by online and mobile third-party payments, with 2013 being a
boom year for mobile payments. The gross merchandise volume of third-party mobile payment in
China had peak growth of between 7 and 8 times last year compared to 2012. Third-party online
payment grew by half in 2013. The share of cash on delivery on B2C E-Commerce payments in
India is forecasted to decrease in the coming years, though it will still remain the leading payment
method accounting for around half of the market, far ahead of credit cards.
Middle East & Africa
Cash on delivery remains the major payment method in growing B2C E-Commerce in the Middle
East and Africa. This method accounted for almost 50% of E-Commerce transactions in the region,
while payment by cards accounted for a third. Mobile payment growth is the trend to watch in the
Middle East and Africa, where banking services penetration is low, with Kenya showing one of the
highest potentials. In South Africa, the most significant alternative payment methods were bank
transfer and PayPal, though usage rate of these methods trail credit card use. In B2C E-Commerce
in Saudi Arabia, local auto-debit payment system Sadad accounted for a small double-digit
percentage of payments, while cash on delivery accounted for over two thirds.
For further information, see:
http://ystats.com/en/reports/preview.php?reportId=1085

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About yStats.com
yStats.com has been committed to researching up-to-date, objective and demand-based data on
markets and competitors for top managers from various industries since 2005. Headquartered in
Hamburg, Germany, the firm has a strong international focus and is specialized in secondary
market research. In addition to offering reports on markets and competitors, yStats.com also
carries out client-specific research. Clients include leading global enterprises from various
industries including B2C E-Commerce, electronic payment systems, mail order and direct
marketing, logistics, as well as banking and consulting.