GL BAL PAYMENTS REPORT - Your definitive guide to the world of online payments - ISOC.so
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GL BAL PAYMENTS REPORT Your definitive guide to the world of online payments NOVEMBER 2016
Contents Methodology
This report has been compiled using a mixture of primary and secondary sources. Primary sources include our own
Methodology surveys and research; secondary sources include information from reliable and authoritative third-parties such as
financial and industry databases. The report also makes significant use of Worldpay’s many years of experience in
providing global eCommerce solutions. The forward-looking statements and figures contained in this report relate
to the eCommerce industry as a whole and not Worldpay’s business. They’re indicative predictions based on the
Global payment trends data we have used and should be treated as such.
The report is intended to provide a useful at-a-glance snapshot of the current eCommerce payment situation in
Market guides selected countries, as well as highlighting scenarios and trends over the next five years. It’s important to note that
all predictions and conclusions are indicative only, based on current data. They’re naturally subject to changes in
world events and market dynamics over the period concerned (to 2020).
Payment method definitions
As well as the primary and secondary sources mentioned above, sources used for this report also include specific
organisations and publications, including:
• Local card, banking, and/or payments associations
• Card scheme and payment providers
• eCommerce industry reports and studies
• Other payments surveys and reports
worldpay.com
• Third-party news articles
4
Global payment methods breakdown
29+24+17118432
2015 2020
Global payment trends eWallet 31% 30%
Credit Card 25% 20%
2015 Debit Card 17% 16%
Bank Transfer 10% 13%
+2
33+16+151296432
Cash on Delivery 7% 8%
Pre-Paid 3% 6%
PrePay 3% 4%
2020 Others 2% 1%
PostPay 2% 1%
E-Invoices 0% 1%
6North America payment trends % of total spend Latin America payment trends % of total spend
2015 2020 2015 2020
Credit Card 36% 26% Credit Card 53% 45%
eWallet 19% 27% Debit Card 12% 14%
Debit Card 23% 15% eWallet 11% 12%
Bank Transfer 7% 11% Pre-Paid 3% 10%
Cash on Delivery 4% 3% PostPay 12% 8%
Pre-Paid 3% 7% Bank Transfer 5% 5%
PrePay 3% 6% Cash on Delivery 2% 3%
Others 3% 2% PrePay 1% 2%
PostPay 1% 2% Others 1% 1%
Direct Debit 1% 1%
8EMEA payment trends % of total spend Asia Pacific payment trends % of total spend
2015 2020 2015 2020
Debit Card 27% 25% eWallet 46% 38%
eWallet 20% 18% Credit Card 20% 18%
Bank Transfer 17% 18% Debit Card 9% 12%
Credit Card 19% 16% Bank Transfer 8% 11%
Cash on Delivery 8% 8% Cash on Delivery 8% 10%
Pre-Paid 3% 5% Pre-Paid 4% 6%
PrePay 3% 4% PrePay 2% 3%
Others 2% 3% PostPay 2% 1%
E-Invoices 1% 3% Others 1% 1%
10Key insights
12Smart devices are going through an identity crisis
If there’s one technology trend defining this decade it’s the Similarly, how will an ecosystem of connected technologies
way in which our products and devices are being reinvented in the home differentiate between different users and their
as technology platforms. Advanced software is becoming as payment details?
ingrained in our household appliances and cars as it is in our
smartphones, and the way people interact with these products These concerns are fuelling the search for more advanced
is changing as a result. authentication and identify management methods.
Biometric authentication, already quite common on
This year’s Mary Meeker Internet Trends report referred to late-model smartphones, is being extended as a means of
autonomous vehicles as “mobile living rooms” manned by users better managing user identity across a range of products and
instead of drivers[1]. Tesla is arguably leading the way in this in the financial sector[3].
regard. The company recently announced that every one of its
vehicles will come equipped with self-driving capabilities[2]. The field is becoming more advanced by the day. Another
approach gaining traction is that of identifying consumers
Whether riding in a driverless car or programming a smart based on their digital activity – from their online tendencies to
fridge, people will soon find themselves engaging with an their social footprint – with companies like Veridu leading
operating system first and its physical shell second. In the the market[4].
coming years, most electronic products will support smart
applications linked directly to our payment details so we can Data and device security will continue to be a major focus,
use them as we do our smartphones to make purchases at the particularly for consumers. The more devices we allow our
touch of a button, or even automatically. technologies to connect with the more susceptible we
become to hacks and fraud – the October 2016 DDoS attack on
As these devices are increasingly trusted to “make” purchases Twitter, Spotify, PayPal and other major services in the U.S. was
for us, the question of identity becomes more relevant. For a prime example[5].
Smart devices linked directly to our payment
instance, if an automatic purchase is made by an in-car app
Software vendors and merchants will need to work together
while someone other than its owner is driving, whose bank
to provide customers with the same level of security they have
account should be charged for the sale?
come to expect on their other devices, and the same flexibility
to manage which personal data they share. details will be able to order products autonomously
14The mobile wallet tipping point comes into view
Despite Worldpay’s predictions that 2016 would mark a tipping • More consumers will gain access to NFC-enabled phones as
point for eWallets and mobile wallets[6], these payment methods their previous models become obsolete and they look
have not yet fulfilled their promise. Mobile wallets in particular to upgrade.
have struggled to take off. While the launches of Apple Pay
and Android Pay have put these wallets at the fingertips of • Some merchants will replace their in-store terminals over
millions, adoption has been slower than expected for a number the next three to five years, which will drive wider support for
of reasons: mobile wallets and give consumers more incentive to pay
this way.
• The rise of contactless payments has given traditional cards
new life as a convenient payment option. As a result, people • Mobile wallets will increasingly come with value-adding
have questioned the advantage of using their phone for services, including additional transaction information within
the payment app, budgeting features, and integrated loyalty
2 0
0
NFC purchases.
2
schemes, which will make them more attractive
• Mobile wallets were launched at a time when only the latest to consumers.
smartphones supported the payment method, keeping the
technology out of reach for many potential users. The only major roadblock to adoption will be the fragmentation
of payment ecosystems. There’s still work being done in terms
• Uptake by merchants has been stop-start, with many being of data transfer between mobile apps, and it will take closer
cautious due to historic investment requirements (which are collaboration between competing organisations to make
now falling away as more mobile wallets adopt NFC). Many are the mobile wallet experience convenient enough to sway
waiting to see which ecosystems gain traction before investing. modern consumers.
By 2020, however, several factors will carry us past the tipping It’s worth remembering the adoption of NFC was also a slow
point for mobile wallets: burn. Behavioural change does happen more quickly in the
digital age, however, and the next few years will see enough
• Mobile wallets from Apple and Google are being extended
to in-web browsers[7]. This means any online merchant can
factors converge to bring mobile wallets into the mainstream.
By 2020
mobile wallets will
Once that happens, it will be consumers that dictate which
support these technologies. It also means shoppers can use a payment technologies come out on top in a crowded market.
be the mainstream
single payment method both online and in-store, making the
proposition much more attractive for the rising proportion of
people who prefer mobile commerce. 16600million ONLINE
India to challenge China In
dian Citizens
BY 2020
Mobile will be a driving force behind eCommerce growth.
By 2020 the average age of India’s citizens will be 29[14],
in the battle of eCommerce giants and while cash is still king, young people shopping on
smartphones are driving a sharp rise in online spend.
2 n d
Smartphone penetration rose by 23% in 2015[15] as the
India
While it currently accounts for a small portion of global country’s middle class increasingly switches over to 3G
eCommerce spend, the Indian market is primed for and 4G networks at affordable prices.
explosive growth. Roughly 350 million Indian citizens are The National Optical Network, originally scheduled for
already online, and that number is expected to nearly L a rg e st
completion in 2013, will be a major determinant in India’s
t
e C o m m e rc e m a rk e
double to 600 million by 2020[8]. According to Google’s eCommerce growth. A number of delays have slowed the
‘Next Billion Users’ team, three Indians are coming online project down, but trial roll-outs are currently underway
every second[9]. and if successful the next few years will result in wider
A government digital finance initiative has also access to fast internet access for millions of Indian
consumers. by
2034
been launched to give more Indians access to debit
cards[10]. The introduction of RuPay in 2014 has further Indian consumers do still prefer cash on delivery
democratised the use of card payments. RuPay now when it comes to online purchases[16], and while their
provides nearly 40% of the cards issued in India[11], and confidence in cards and sharing data is rising, merchants
the issuer has recently struck a deal with Discover to gain must provide a cash on delivery option to attract local
access to its network both inside and outside India[12]. shoppers.
In light of these trends, Worldpay expects India The logistics of delivering goods are also a major
will overtake the US as the world’s second largest consideration, as the postal infrastructure is severely
eCommerce market by 2034. The potential opportunity
I N E underdeveloped in rural areas. Most e-retailers have
for merchants is enormous, but they must stake their
O NL 1 6 depended on third party delivery firms until now, but as
claim today to win over India’s commerce-hungry
ion 2 0 the market grows and extends beyond city centres many
350
population. Leading companies are already making their
move on the Indian market, including, Amazon, Alibaba,
mill ns IN companies will take matters into their own hands; managing
C itize deliveries themselves to ensure a reliable service.
and Flipkart[13]. an
Indi
18Today’s youth call for more e Invoicing While the prospects for credit issuing are strong, the
majority of users remain in a highly localised part of
democratic payments Europe. The level of acceptance in major eCommerce
markets such as the US and UK over the next few years will
determine how successful this payment method becomes.
The relatively low spending power of younger generations
has seen the payments market become more democratic. Millennials’ self-imposed squeeze on spending will
also drive the adoption of PrePaid cards, particularly in
It’s expected that millennials will be the first generation emerging and semi-mature markets. The appetite for
to earn less than their parents, but at the same time eCommerce is high among consumers in these regions
they’re among the world’s most digitally savvy consumers. but access to credit cards has traditionally stood in the
To address the needs and limits of 18-35 year olds, way for many of those in lower economic brackets.
merchants are increasingly offering more flexible payment
methods that offer them greater control over their PrePaid cards do not impose the same income
finances, such as eInvoicing, bespoke credit options and requirements as traditional card schemes, and are
PrePaid cards. therefore accessible to a much larger percentage of the
population. As they come loaded with a pre-defined value,
eInvoicing works like a traditional bank loan, whereby they also help ensure users avoid falling into debt by living
customers are given a set period of time within which to beyond their means on credit.
pay for a good or service rather than having to do so right
away. Companies like Klarna, one of Europe’s best known PrePaid cards are already beginning to shape some
credit issuing platforms, have already grown popular in country’s payments landscape. In Brazil, for example,
the Nordics and are now making in-roads into the rest of Carta Elo has seen widespread adoption and is
Europe and the US[17]. challenging American Express as the third most popular
payment scheme behind Visa and Mastercard. In July
These payment methods are attractive to cost-conscious 2016, the first Elo payment transaction outside the US was
consumers who are wary of using credit cards and made on the Discover card network[19].
running into debt, and to merchants who prefer not to
Millennials want flexible payment
incur card fees on each purchase. Additionally, companies
like Klarna underwrite the risk of non-payment by
consumers for merchants so they’re not left out
of pocket[18]. eInvoicing is growing across methods to control their f inances
Europe and the US 20The unified East and like PayPal compete for market share with technology
vendors such as Apple and Google, who in turn compete
the fragmented West with smaller scale offerings from hundreds of payment
providers and merchant-owned services.
While this fragmented approach does offer consumers
Alipay has become the world’s most popular online more choice, it has also contributed to slower adoption
payment method. It accounts for 44% of global eWallet as people remain unsure of which payment methods are
spend and is on pace to command 60% of the eWallet most relevant to them, and of their relative merits.
market by 2020[20]. This success can be attributed to the
fact that Alipay was introduced when mobile adoption in The coming years are likely to see major technology
China was booming and consumers were spending rapidly. companies, including Facebook, Apple and Google, follow
It’s also impossible to ignore the sheer size of China’s in Alipay’s footsteps and compete on the lifestyle USP to
consumer-base. The country’s digital travel sales alone will win over customers. The roll-out of in-browser payments
amount to nearly $100 billion in 2016, rivalling the overall by Apple and Google and launch of in-app money transfers
revenue of Microsoft. Come 2020, this figure will have from Facebook mark the first steps in terms of delivering a
doubled[21]. ubiquitous experience[23].
Somewhat crucial to Alipay’s success is how the payment Meanwhile, efforts by the World Wide Web Consortium
method has become a “lifestyle” choice[22] embedded into (W3C) to make the online payments experience consistent
daily life interactions and activities. Consumers in China for shoppers regardless of which payment method they
use Alipay when booking a taxi, searching for a restaurant, use will be instrumental in harmonising the Western
or chatting to friends, and when they want to make a market. Worldpay is co-chairing the W3C Web Payments
purchase or a peer-to-peer transaction. By contrast, Working Group, whose mission is to make online payments
Western consumers are more likely to open their browser easier and more secure[24].
to buy goods and use a purpose-built app for money
transfers. Of course, merchants will need to buy in to leading
payment methods for consumers to even get access. It’s
This highlights the stark difference that is keeping any one
Western provider from replicating Alipay’s unparalleled The East has a dominant eWallet also worth noting the continued strength of Amazon and
PayPal, who are not W3C members, may create a marked The Western payment
success. The North American and European payments
market remains fragmented. Pure payment companies provider with Alipay, accounting for divide in the market for some years to come.
landscape is very diverse
44% of GLOBAL eWallet spend 22Racing to court The response by Western businesses will be two-fold.
The first priority will be to defend their market share
the Chinese diaspora from Chinese players, and the second will be to court the
attention of Chinese consumers living abroad as they
are exposed to a wider range of products and services.
The Chinese consumer market has traditionally been Given the size of the Chinese diaspora – there are over
restricted to those living in the People’s Republic two million Chinese expatriates living in the US[28] – the
of China. The rise of eCommerce, coupled with the potential opportunity is large indeed.
continued emigration of middle and upper class Chinese Western companies have begun to respond by becoming
consumers, has both extended the reach of Eastern more strategic in the way they target Chinese consumers.
merchants and given them a growing base of expatriates In the US and UK particularly, a sizeable expat population
to target in new markets. will draw the attention of merchants that already have
Alibaba in particular has committed to expanding a strong brand presence and advanced eCommerce
globally, a move which is likely to shift the balance of capabilities.
power in established Western markets. Most notably, Younger Chinese shopper’s preference for mobile
it struck a deal with 10 international airports so that commerce will accelerate merchant adoption of mobile
Chinese consumers can purchase goods using Alipay on wallets and, as they’re rolled out, in-browser payments
their mobile phones instead of using overseas currency from Apple and Google. There will be another shift
when travelling to these locations[25]. The announcement in terms of the mobile and online user experience,
came just in time for Golden Week 2016, a major week- as Chinese consumers will not tolerate redirects or
long national holiday in China. any other unsolicited barriers to a quick and painless
However, eCommerce is also breaking down borders for payments experience.
Western merchants who are keen to get their own slice
of the Chinese eCommerce pie. The dominance of China
Singles Day in 2015 was a major wake-up call. Alibaba
took in over $14 billion on the 11 November holiday[26]. Chinese shoppers preference for mobile
By comparison, $1.35 billion was spent in total by US
consumers on Cyber Monday, America’s biggest online
Tap into the spending habits of commerce is accelerating Merchants
shopping day[27].
Chinese consumers living abroad adoption of mobile wallets
24Market guides
26AUSTRALIA As eCommerce TOP TIP
37+21+141273A
grows, an
increasing number
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
24.2 Million
of users are turning WHO HAVE INTERNET Alternative payment methods
to alternative 88% are becoming increasingly
mainstream. As a result, ensure
payment methods.
2016 GDP
the user experience for eWallets
2015 US$1.20tn and Bank Transfers matches
MOBILE SUBSCRIPTIONS PER CAPITA that of Credit Cards to appeal to
1.45 consumers.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 37% Pre-Paid 3%
2020
eWallet 21% PrePay 3%
US$61 bn
Others 3%
78+100
13+22+ +
Bank Transfer 14%
6579
Debit Card 12%
2016
Cash on Delivery 7%
PAYPAL POLI BPAY
US$41 bn US$45 bn
US$32 bn
CARD SCHEME BREAKDOWN
Although Australia is one of Asia Pacific’s largest
eCommerce markets, local suppliers have been
relatively slow to offer the most sophisticated
395+80+30+101=
46% Visa 27% Mastercard US$9 bn
US$16 bn
2016-2020
10%
online services. However, this is now changing and
17% Local Card Schemes
there is significant growth in the use of systems
such as the payments solution, BPAY.
10% American Express
eCommerce turnover Desktop Mobile
Online CAGR
28BELGIUM Although Belgium TOP TIP
32+23+1615732A
has one of the
world’s fastest
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
11.3 Million
growing rates WHO HAVE INTERNET Belgium’s own payment product
89%
of online sales, Bancontact, is very popular, with
over 80% of online merchants
cards remain
2016 GDP
accepting the payment method.
2015 US$ 0.47tn Be sure to offer this payment
the dominant MOBILE SUBSCRIPTIONS PER CAPITA
1.15
method on your website.
payment method.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 32% Cash on Delivery 7%
2020
Debit Card 23% PrePay 3%
US$13 bn
Bank Transfer 16% Pre-Paid 2%
78+100
13+22+ +
6579
eWallet 15% Others 2%
2016
PAYPAL BANCONTACT BANK TRANSFER
US$9 bn US$11 bn
Despite high Internet penetration, Belgium was US$8 bn
relatively slow to embrace the eCommerce model.
This however, is no longer the case, and online CARD SCHEME BREAKDOWN
430+45+10 +5=
sales are expected to show one of the highest
growth rates in the world between 2016 and 2020,
with mobile eCommerce contributing significantly US$3 bn
to this growth. eWallets such as PayPal are growing
86% 9% Visa US$1 bn
2016-2020
11%
in popularity. Cards remain the preferred option,
Bancontact 2% Mastercard
with local schemes namely Bancontact being by far
the most popular consumer choice.
2% American Express
1% Diners Club eCommerce turnover Desktop Mobile
Online CAGR
30BRAZIL Cards remain TOP TIP
64+15+12321A
the preferred
payment option in
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
209.7 Million
South America’s WHO HAVE INTERNET Between 2014 and 2015, mobile
66%
eCommerce giant. 2016 GDP
payments in Brazil more than
doubled, from 21% to 45%. Any
website selling to Brazilian
2015 US$1.54tn consumers should consider a
MOBILE SUBSCRIPTIONS PER CAPITA mobile optimised website.
1.57
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 64% Bank Transfer 3%
2020
Postpay 15% Debit Card 2%
US$65 bn
eWallet 12% Cash on Delivery 1%
78+100
13+22+ +
6579
Although Brazil’s Internet penetration and
Pre-Paid 3%
eCommerce market is growing, spurred on by 2016
changes in regulations and the deployment of new US$45 bn US$49 bn
BOLETO BANCARIO PAYPAL BANK TRANSFER
technologies, some 65% of consumers did not make
a purchase between 2014 and 2015 - perhaps a sign of CARD SCHEME BREAKDOWN US$39 bn
240+210+60+10=
the recession to come. Of this number, 32% quoted
security concerns as their reason for not shopping
online and 18% said they had no means of payment
via the Internet. Of shoppers who did purchase
43% Visa
online, Credit Cards are the preferred option, with US$16 bn
9% Local Card Scheme
a 64% share of the payments market, followed by 2% American Express
US$6 bn
2016-2020
10%
Boleto Bancário, which supports both online and
offline payment (including cash). PayPal is also
growing in popularity. 46% Mastercard eCommerce turnover Desktop Mobile
Online CAGR
32CANADA The dominance TOP TIP
63+12+75321A
of Credit Cards is ECOMMERCE MIX BY PAYMENT METHODS
likely to weaken 2016 POPULATION
36.2 Million
significantly, in WHO HAVE INTERNET It’s worth noting that Canada is
favour of alternative 90% the global leader in cross-border
retail eCommerce, with 75% of
methods such
2016 GDP
Canadian shoppers purchasing
2015 US$1.46tn from US websites. Make sure your
as eWallets. MOBILE SUBSCRIPTIONS PER CAPITA delivery cost options are clearly
0.83 displayed before consumers
reach the checkout.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 63% Direct Debit 3%
2020
eWallet 12% Pre-Paid 2%
US$78 bn
Bank Transfer 7% PrePay 2%
78+100
13+22+ +
6579
Debit Card 5% Others 1%
2016
Cash on Delivery 5%
PAYPAL CASH ON BANK TRANSFER
US$55 bn US$59 bn
DELIVERY
While Canada’s eCommerce market remains US$47 bn
relatively small, there are clear signs of growth, with
an emphasis on mobile usage rather than desktop. CARD SCHEME BREAKDOWN
350+150+10 =
In terms of payment methods, cards are the
most popular form of online payment in Canada.
However, their usage is expected to decline US$19 bn
by some 28% by 2020, in favour of alternative
57% Visa 30% Mastercard US$8 bn
2016-2020
9%
methods. Of these, PayPal is proving particularly
7% Local Card SChemes
popular. The use of payments on mobile devices is
also expected to rise.
6% American Express
eCommerce turnover Desktop Mobile
Online CAGR
34CHINA eWallets such TOP TIP
60+10+97642A
as Alipay remain
dominant and
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
1,378 Million
mobile payments WHO HAVE INTERNET Mobile is one of the fastest
57%
are growing growing segment of online
payments in China, increasing
significantly in
2016 GDP
by 33% between 2014 and 2015.
2015 US$11.38tn As a result of this, the checkout
popularity. MOBILE SUBSCRIPTIONS PER CAPITA
1.07
should be simple, offering a fast
user experience.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
eWallet 60% Bank Transfer 6%
2020
Credit Card 10% Pre-Paid 4%
US$1423 bn
74+100
Debit Card 9% PrePay 2%
6377
12+22+
Cash on Delivery 7% Others 2%
2016
ALIPAY UNION PAY WECHAT PAY
US$1217 bn
US$827 bn
Although still a relatively small part of China’s total
US$734 bn
spend, eCommerce is gathering pace as 53.7%
of Internet users had made an online transaction CARD SCHEME BREAKDOWN
395+80+20+20=
by 2015. The payments landscape in China is
dominated by eWallets such as Alipay and Tenpay,
though card schemes are expected to grow over US$205 bn
the next few years. The increase in popularity of
96% UnionPay 2% Visa US$92bn
2016-2020
15%
mobile payments, which grew 7.5% (by share of
1% Mastercard
users) between December 2014 and June 2015, is
expected to continue.
1% JCB
eCommerce turnover Desktop Mobile
Online CAGR
36DENMARK Cards remain TOP TIP
28+22+20127432A
dominant in one ECOMMERCE MIX BY PAYMENT METHODS
of the world’s 2016 POPULATION
5.7 Million
most advanced WHO HAVE INTERNET The adoption rate of mobile
eCommerce 99% payments is extremely high in
Denmark and is set to quadruple
markets.
2016 GDP
by 2020. As cards are the most
2015 US$0.30tn popular payment method, a
MOBILE SUBSCRIPTIONS PER CAPITA tokenised checkout would be
1.30 strongly advisable to retain
customer loyalty.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Debit Card 28% E-Invoices 4%
2020
eWallet 22% Others 3%
US$22 bn
Bank Transfer 20% Pre-Paid 2%
78+100
13+22+ +
6579
Credit Card 12% PrePay 2%
2016
Cash on Delivery 7%
PAYPAL CASH ON BANK TRANSFER
US$15 bn US$15 bn
DELIVERY
US$13 bn
As one of the world’s top 15 retail eCommerce CARD SCHEME BREAKDOWN
395+80+30+10=
markets, Denmark has more than 4 million online
shoppers, which equates to over 70% of the
country’s population. Cards (Credit and Debit) are US$7 bn
by far the most popular payment method, though
56% Dankort 29% Mastercard US$3 bn
2016-2020
9%
their share is likely to decline in the future. Bank
13% Visa
Transfer and eWallets are the next most popular
payment methods.
2% Diners Club
eCommerce turnover Desktop Mobile
Online CAGR
38FRANCE Although France TOP TIP
34+22+181353A
is innovating in the ECOMMERCE MIX BY PAYMENT METHODS
payments arena, 2016 POPULATION
67.2 Million
cards remain the WHO HAVE INTERNET France already has three times as
dominant online 86% many users of Paylib than PayPal,
and the trend is set to continue
payment method.
2016 GDP
in the future, so merchants
2015 US$2.47tn should offer both eWallets types
MOBILE SUBSCRIPTIONS PER CAPITA to attract French consumers.
1.05
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Debit Card 34% PrePay 5%
2020
eWallet 22% Cash on Delivery 5%
US$101 bn
Pre-Paid 3%
78+100
13+22+ +
Credit Card 18%
6579
Bank Transfer 13%
2016
PAYPAL PAYLIB BANK TRANSFER
US$78 bn US$79 bn
One of Europe’s largest markets France, has high
levels of eCommerce, leaving less opportunity for US$65 bn
rapid growth compared with some other countries.
However, although growth is modest, it remains CARD SCHEME BREAKDOWN
405+80+30=
significant, particularly in the mobile channel.
While a range of payment methods are used, the
most popular is Debit Cards, followed by eWallets. US$22 bn
Card Bancaires maintains a relatively high share
6% Visa US$13 bn
2016-2020
7%
of transaction volumes. The new bank-owned
3% Mastercard
national eWallet (Paylib), has become very popular
in the market. 91% Groupement des Cartes Bancaires eCommerce turnover Desktop Mobile
Online CAGR
40GERMANY Bank Transfers are TOP TIP
39+22+1562A
set to continue ECOMMERCE MIX BY PAYMENT METHODS
to dominate the 2016 POPULATION
81.3 Million
German payments WHO HAVE INTERNET With over 50% of German
landscape, while 88% consumers expressing a desire for
stricter laws with regard to privacy
the popularity of
2016 GDP
and security, shoppers want to
2015 US$3.47tn see payment authentication and
cards is expected to MOBILE SUBSCRIPTIONS PER CAPITA digital certificate logos to make
1.26 them feel more secure.
decline further.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Bank Transfer 38% PostPay 2%
eWallet 22% Direct Debit 2% 2020
E-Invoices 2% US$105 bn
81+100
11+21+ +
Credit Card 15%
6984
Debit Card 6% Pre-Paid 2% 2016
Cash on Delivery 6% Others 3% US$84 bn
Germany ranks fifth in the world, in terms of online US$81 bn SOFORT BANKING SEPA DD GIROPAY
PrePay 2%
sales volume. It’s also a world-leader in cross-
US$70 bn
border eCommerce, behind only the US and the
UK, with some 50% of online purchases made
via an international website. In Germany, the CARD SCHEME BREAKDOWN
220+220+80=
preferred online payment method is Bank Transfer
closely followed by eWallets such as PayPal and
cards. Credit Cards are used by a relatively small US$21 bn
proportion of online purchasers (9.1% of men, 5.8%
38% Visa 37% Mastercard US$11 bn
2016-2020
7%
of women in 2015) and this share is expected to
decline further by 2020, when alternative payments 25% Local Card Schemes
are expected to dominate. eCommerce turnover Desktop Mobile
Online CAGR
42HONG KONG Despite a fast TOP TIP
54+11+108762A
increase of mobile ECOMMERCE MIX BY PAYMENT METHODS
adoption, Hong 2016 POPULATION
7.4 Million
Kong’s eCommerce WHO HAVE INTERNET As Hong Kong has a very
market shows 76% high smartphone adoption,
merchants should consider
relatively slow
2016 GDP
offering a payment process
2015 US$0.32tn optimised for mobile devices.
growth. MOBILE SUBSCRIPTIONS PER CAPITA A one-click payment solution is
2.50 highly recommended.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 54% Pre-Paid 7%
Debit Card 6% 2020
eWallet 11%
Bank Transfer 10% PrePay 2% US$14 bn
74+100
6377
60+70+
Cash on Delivery 8% Others 2%
2016
US$8 bn
PAYPAL OCTOPUS CARD BANK TRANSFER
US$9 bn
US$6 bn
US$5 bn
US$4 bn
Modest eCommerce growth is expected, despite
low levels of Internet use. However, the market has CARD SCHEME BREAKDOWN
175+145+85+50+45=
a very high adoption rate of mobile technology.
In payments, Credit Cards are the most common
method for online purchases followed by eWallets
and Bank Transfers. For nearly 80% of online
35% Visa 29% Mastercard
2016-2020
10%
shoppers, payment security is the most important
17% UnionPay
when choosing payment methods, though website
reputation is also important.
10% Local Card Schemes
9% American Express eCommerce turnover Desktop Mobile
Online CAGR
44INDIA Although cash TOP TIP
26+23+1412875A
dominates
the payment
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
1,327 Million With rapid growth expansion in
landscape, this is WHO HAVE INTERNET recent years, India’s mobile wallet
25% market is projected to reach
likely to change USD 5.1 billion (EUR 4.6 billion)
in 2020. As cash on delivery is by
as India’s online
2016 GDP
2015 US$2.29tn far the largest payment method,
payment system
choosing the right delivery
MOBILE SUBSCRIPTIONS PER CAPITA
partner to take cash payments is
0.80
matures. critical.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Cash on Delivery 26% eWallet 8%
Bank Transfer 23% 2020
PrePay 7%
Debit Card 14% Pre-Paid 5% US$64 bn
74+100
6377
12+22+
Credit Card 12% Others 5%
2016
With rapidly growing Internet and mobile adoption, US$52 bn
CASH ON EWALLET BANK TRANSFER
US$24 bn DELIVERY
India is one of the fastest-growing eCommerce
markets in the world. In fact, it’s expected to
US$20 bn
almost quadruple by 2020. In terms of payment
methods, Cash on Delivery is the most popular, CARD SCHEME BREAKDOWN
290+125+55+30=
accounting for some 26% of the market followed
by Bank Transfers. The popular use of cash is a
consequence of the country’s underdeveloped US$11bn
payment infrastructure. Around 75% of the
58% Visa 25% Mastercard US$4 bn
2016-2020
28%
population do not have a way to pay online. As the
11% Local Card Schemes
infrastructure develops, cash is likely to decline in
favour of other payment methods.
6% American Express
eCommerce turnover Desktop Mobile
Online CAGR
46ITALY Within a generally TOP TIP
32+20+131210841A
expanding ECOMMERCE MIX BY PAYMENT METHODS
eCommerce 2016 POPULATION
61.2 Million
market, WHO HAVE INTERNET Pre-Paid Cards are one of the
mCommerce is 65% most popular forms of payment in
Italy because of a low perceived
growing particularly
2016 GDP
risk. Postepay is extremely
2015 US$1.85tn popular and should be provided
quickly. MOBILE SUBSCRIPTIONS PER CAPITA as a payment option.
1.54
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 32% Debit Card 8%
PrePay 4% 2020
eWallet 20%
Pre-Paid 13% Others 1% US$42 bn
74+100
6377
12+22+
Cash on Delivery 12%
2016
Bank Transfer 10%
PAYPAL POSTEPAY BANK TRANSFER
US$38 bn
US$27 bn
Although Italy’s Internet adoption is still low, the
US$24 bn
country’s eCommerce sector is beginning to pick
up pace. mCommerce is growing particularly CARD SCHEME BREAKDOWN
270+160+65+10=
quickly with over 20% of Italians now making a
purchase via their mobile or tablet. In payments,
Credit Cards still remain the most popular form of US$5bn
online purchases with a 32% share of the market,
54% Visa 32% Mastercard US$3 bn
2016-2020
13%
although this is expected to fall in the near future.
12% Local Card Scheme
In fact, card payments are expected to fall by 3%
by 2020.
2% American Express
eCommerce turnover Desktop Mobile
Online CAGR
48JAPAN No immediate TOP TIP
55+17+14101A
change is expected ECOMMERCE MIX BY PAYMENT METHODS
in the relative 2016 POPULATION
126.7 Million Japan’s popular smartphone
share of cards WHO HAVE INTERNET
messaging app operator LINE,
is rapidly expanding its mobile
and alternative 96% payment service LINE Pay,
launched in December 2014.
payments methods.
2016 GDP
2015 US$4.41tn eCommerce sellers should
optimise the customer payment
MOBILE SUBSCRIPTIONS PER CAPITA journey to make the experience
1.30 seamless and mobile responsive.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 55% PrePay 1%
PostPay 17% eWallet 1% 2020
Bank Transfer 14% Pre-Paid 1% US$154 bn
74+100
6377
12+22+
With high urbanisation and a technologically- Cash on Delivery 10%
savvy population, Japan is the second largest Debit Card 1%
2016
eCommerce market in Asia in terms of sales and US$102 bn
PAYPAL KONBINI BANK TRANSFER
US$127 bn
the fourth largest in the world. The most used
payment method by online shoppers is Credit Card,
US$93 bn
which has a 55% share of the payments market, CARD SCHEME BREAKDOWN
followed by PostPay (17%) and Bank Transfers (14%).
However, Konbini (payment for online purchases at
convenience stores) still accounts for a significant
proportion of transactions, while Pre-Paid cards, of
which the most popular brands are JR and WAON,
225+150+90+20+15=
45% Visa 30% JCB
US$51bn
18% Mastercard US$34 bn
2016-2020
5%
are also used. The share of the payment market
4% American Express
dominated by cards and alternative methods is
expected to remain stable in the near future.
3% Local Card Schemes
eCommerce turnover Desktop Mobile
Online CAGR
50MALAYSIA In a rapidly TOP TIP
66+20+531A
expanding ECOMMERCE MIX BY PAYMENT METHODS
eCommerce market, 2016 POPULATION
30.8 Million
the dominance WHO HAVE INTERNET The use of alternative payment
of cards is likely to 72% methods, particularly eWallets,
are expected to almost double
decline as alternative
2016 GDP
by 2020. eCommerce businesses
2015 US$0.31tn should offer a combination of
payments become MOBILE SUBSCRIPTIONS PER CAPITA local Bank Transfers and eWallets
1.62 to appeal to more consumers.
more established.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 66% Pre-Paid 1%
Bank Transfer 20% PrePay 1% 2020
Debit Card 5% Others 1% US$4 bn
74+100
6377
+ +
Cash on Delivery 3%
This market is showing moderate growth in eWallet 3%
2016
US$2 bn
online retail which is expected to double by 2020. PAYPAL CASH ON BANK TRANSFER
US$2 bn DELIVERY
While much of this growth is likely to result from US$2 bn
US$1 bn
Intra-Asian trade flows, trans-regional trade is
US$1 bn
likely to increase in response to international
competitiveness. When it comes to payments, CARD SCHEME BREAKDOWN
295+180+30=
Credit Cards are still the most popular payment
method, with an estimated 66% of total
transactions. Bank Transfers are also proving to be
very popular. However, the dominance of Credit
55% Visa 43% Mastercard
2016-2020
15%
Cards is expected to decline significantly over the
2% Local Card Schemes
next few years, as alternative payment methods
become more established. eCommerce turnover Desktop Mobile
Online CAGR
52MEXICO Mobile payments TOP TIP
30+33+1087532A
are proving popular ECOMMERCE MIX BY PAYMENT METHODS
in a rapidly growing 2016 POPULATION
128.7 Million
eCommerce sector. WHO HAVE INTERNET The number of people who
51% made online payments in Mexico
almost doubled between 2010
2016 GDP
and 2014. For any business
2015 US$1.08tn interested in Latin America,
MOBILE SUBSCRIPTIONS PER CAPITA Mexico could provide one of the
0.84 biggest opportunities to grow.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Debit Card 33% PostPay 5%
Credit Card 30% Pre-Paid 3% 2020
With a level of online purchases that almost Bank Transfer 10% PrePay 2% US$41 bn
74+100
6377
20+30+
doubled between 2010 and 2014, Mexico now eWallet 8% Others 2%
has the second-largest retail eCommerce market Cash on Delivery 7%
2016
in Latin America (after Brazil). This growth is US$38bn
PAYPAL EWALLET BANK TRANSFER
US$22 bn
likely to continue and the sector is expected to
triple by 2020. The country has a high adoption
US$20 bn
rate of mobile technology, making it the largest
mCommerce market in Latin America. Debit Cards CARD SCHEME BREAKDOWN
395+90+30=
were used by an estimated 33% of online shoppers
in 2016, making them the most popular form of US$4 bn
payments. As many Mexicans do not have a bank
account, cash is still used for payment. The relative US$2 bn
73% Visa 25% Mastercard
2016-2020
17%
share of cards and alternative payment methods
2% American Express
are expected to remain essentially stable over the
next few years. eCommerce turnover Desktop Mobile
Online CAGR
54NETHERLANDS Cards continue to TOP TIP
71+7+6321A
claim a relatively
small share of
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
17 Million
the payment WHO HAVE INTERNET iDEAL dominates across all
94%
landscape digital channels, accounting for
48% of payments made on tablets
dominated by
2016 GDP
and 29% on smartphones. This
2015 US$0.76tn payment method is a necessity if
iDEAL. MOBILE SUBSCRIPTIONS PER CAPITA
1.17
selling to Dutch consumers.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Bank Transfer 71% PrePay 3%
Credit Card 7% Pre-Paid 2% 2020
eWallet 6% Others 1% US$48 bn
74+100
6377
20+30+
Cash on Delivery 6% E-Invoices 1%
2016
Debit Card 3%
CASH ON EWALLET IDEAL
US$42 bn
US$33 bn DELIVERY
US$30 bn
The Netherland’s eCommerce market continues CARD SCHEME BREAKDOWN
395+130=
to grow at a moderate rate, driven mainly by the
growth of the mobile channel. Real-time bank US$6 bn
transfers are by far the most popular form of online
payment, with an estimated 71% of transaction US$3 bn
74% Mastercard 26% Visa
2016-2020
10%
volume. Credit Cards only accounted for 7% of the
market in 2015, a figure which is expected to fall
even further by 2020. eCommerce turnover Desktop Mobile
Online CAGR
56NEW ZEALAND New Zealand’s TOP TIP
36+20+16136342A
eCommerce
market is showing
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
4.7 Million
consistent growth. WHO HAVE INTERNET Almost 50% of New Zealanders
87% have abandoned a purchase
because of poor website
2016 GDP
performance and bought the
2015 US$0.17tn same product from another site.
MOBILE SUBSCRIPTIONS PER CAPITA User experience is critical for
1.14 consumers in this country.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 36% Cash on Delivery 6%
Debit Card 20% PrePay 3% 2020
Bank Transfer 16% Others 4% US$6 bn
74+100
6377
50+60+
eWallet 13% Pre-Paid 2%
2016
PAYPAL CASH ON POLI
US$4 bn
US$4 bn DELIVERY
US$3 bn
The country’s eCommerce landscape is growing US$2 bn
quickly thanks to a high adoption of mobile CARD SCHEME BREAKDOWN
US$1 bn
320+105+60+15=
devices. Cards, both Debit and Credit dominate
the payment landscape and are expected to
maintain their popularity in the near future. Even
though eWallets are significantly used, New
64% 21% Visa
2016-2020
8%
Zealand is one of the few countries expected to
Local Card 12% Mastercard
see a decline in the use of alternative payments
methods by 2020.
Schemes 3% American Express
eCommerce turnover Desktop Mobile
Online CAGR
58NORWAY Norway’s TOP TIP
22+21+18643A
eCommerce
sector looks
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
5.3 Million
set to continue WHO HAVE INTERNET eWallets claim a higher share of
97%
its growth, total online payments in Norway
compared to other countries. It’s
though cards
2016 GDP
therefore paramount to have this
2015 US$0.37tn payment method as part of your
are expected MOBILE SUBSCRIPTIONS PER CAPITA
1.17
payment mix on your website.
to decline in
popularity. ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Bank Transfer 22% Cash on Delivery 4%
Credit Card 21% E-Invoices 4% 2020
eWallet 18% Others 4% US$26 bn
70+100
5577
20+30+
Debit Card 18% Pre-Paid 3%
2016
PrePay 6%
PAYPAL TRUSTLY KLARNA
US$20 bn
Norway has a booming eCommerce market. In fact,
US$14 bn
although the country has just half the population
of Sweden, it accounts for an even greater US$10 bn
proportion of Scandinavia’s retail eCommerce, and CARD SCHEME BREAKDOWN
190+160+150=
this situation looks set to continue. While cards
are the dominant online payment method, they’re
expected to fall in popularity over the next few US$6 bn
years and account for only a quarter of the market US$4 bn
38% Bank Axept 32% Visa
2016-2020
17%
by 2020. E-Invoicing is an alternative payment
30% Mastercard
method which is set to become increasingly
popular in the future. eCommerce turnover Desktop Mobile
Online CAGR
60POLAND Bank Transfers TOP TIP
46+21+129732A
look set to remain
dominant in a
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
38 Million
market showing WHO HAVE INTERNET Polish consumers tend to be
68%
good growth. 2016 GDP
conservative about credit. With
Bank Transfers and Direct Debit
making up well over half of all
2015 US$0.47tn ecommerce payments in Poland,
MOBILE SUBSCRIPTIONS PER CAPITA if you’re not offering these
1.60 payment methods, then you
should be.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Bank Transfer 46% Credit Card 7%
Debit Card 21% Pre-Paid 3% 2020
eWallet 12% PrePay 2% US$18 bn
74+100
6377
24+33+
Cash on Delivery 9%
Although a low Internet take-up led to a relatively 2016
slow start, Poland is now showing good growth in US$14 bn
PAYPAL PAYU PRZELEWY24
US$13 bn
the eCommerce sector, and is one of the stronger
online retail markets in Central Europe. Within the
US$11 bn
eCommerce sector as a whole, mCommerce is
growing particularly strongly and is expected to CARD SCHEME BREAKDOWN
405+120=
increase by 2020. When it comes to payments, Bank
Transfer is the dominant method, used by 46% of US$4 bn
online shoppers, with Debit Cards and eWallets
US$2 bn
also popular. Credit Cards have a low but significant
63% Visa 37% Mastercard
2016-2020
9%
share of the market (7%), however this is expected
to fall further as users become more confident in
the use of alternative payment methods. eCommerce turnover Desktop Mobile
Online CAGR
62PORTUGAL eCommerce is TOP TIP
52+13+9753A
growing as
Portuguese
ECOMMERCE MIX BY PAYMENT METHODS
2015 POPULATION
10.3 Million
consumers recover WHO HAVE INTERNET As one in five Portuguese cross-
confidence. 69% border eCommerce transactions
are made from Spanish websites,
2015 GDP
merchants who build Spanish
2015 US$0.21tn language websites are likely
MOBILE SUBSCRIPTIONS PER CAPITA to also appeal to Portugese
1.11 consumers.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Debit Card 52% Bank Transfer 5%
Credit Card 13% 2020
eWallet 3%
Cash on Delivery 9% Pre-Paid 3% US$7 bn
74+100
6377
24+24+
PrePay 7% Others 3%
Portugal’s general retail market is once again PostPay 5%
2016
showing signs of growth, after a period of difficult US$6 bn
PAYPAL MULTIBANCO BANK TRANSFER
US$5 bn
domestic economic conditions. This growth is
reflected particularly clearly in the eCommerce
US$4 bn
market, where mobile purchases are especially
strong and expected to grow threefold by 2020 CARD SCHEME BREAKDOWN
395+80+30+18=
(against a 2015 base). While cards (Debit and
Credit) are the most popular form of payment, with
a 65% share of the market, this dominance is set US$1 bn
US$1 bn
to decline over the next few years. As alternative
65% Visa 32% Mastercard
2016-2020
10%
payments are expected to increase in popularity,
2% American Express
eWallets, Bank Transfer and PrePay should all gain
a significant share of the total.
1% Local Card Schemes
eCommerce turnover Desktop Mobile
Online CAGR
64RUSSIA Cards overtake TOP TIP
36+26+1511532A
cash in popularity in ECOMMERCE MIX BY PAYMENT METHODS
a rapidly expanding 2016 POPULATION
144.4 Million
eCommerce sector. WHO HAVE INTERNET Mobile payments in Russia
85% are particularly strong and are
expected to show a Online
2016 GDP
CAGR of 21% between 2016
2015 US$1.13tn and 2020. Mobile optimisation
MOBILE SUBSCRIPTIONS PER CAPITA of any eCommerce website
1.51 is paramount.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Debit Card 36% Pre-Paid 5%
Bank Transfer 3% 2020
eWallet 26%
Cash on Delivery 15% PrePay 2% US$53 bn
74+100
6377
12+22+
Credit Card 11% Others 2%
2016
QIWI YANDEX WEBMONEY
US$46 bn
US$34 bn
Exceptionally high smartphone adoption is one
US$31 bn
of the main driving forces behind Russia’s rapidly
expanding eCommerce sector – growth that is CARD SCHEME BREAKDOWN
290+190+15+5=
set to continue for the next few years, as Internet
penetration across the country picks up speed. For
payment, Cash on Delivery has historically been US$6 bn
a popular method. However, Debit Cards are now
58% Visa 38% Mastercard US$3 bn
2016-2020
11%
the most used payment method. As well as cards,
3% Local Card Schemes
eWallets are also popular, particularly products
such as Qiwi and Yandex.money.
1% American Express
eCommerce turnover Desktop Mobile
Online CAGR
66SINGAPORE Cards are set TOP TIP
65+9+872A
to become less
dominant in a
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
5.6 Million
growing market WHO HAVE INTERNET 50% of Singapore’s consumers
87%
driven by use their phones for payments.
As consumers are paying more
mobile activity.
2016 GDP
and more online, a quicker and
2015 US$0.30tn more seamless user experience
MOBILE SUBSCRIPTIONS PER CAPITA should be offered for the future.
1.47
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 65% Cash on Delivery 6%
eWallet 9% Pre-Paid 2% 2020
Debit Card 8% PrePay 2% US$6 bn
74+100
6377
30+30+
Bank Transfer 7% Others 1%
Singapore is a mature eCommerce market, with 2016
a totally urban population and high levels of US$4 bn
PAYPAL ENETS
US$4 bn
crossborder retail trade. Although Internet usage
is almost at saturation point and purchases via
US$2 bn
desktop are static, high smartphone adoption
and mobile purchasing activity are driving solid CARD SCHEME BREAKDOWN
295+150+50+20+10=
growth in the overall eCommerce market. In terms
of payments, cards are, by some margin, the most
used payment method, though eWallets and US$2 bn
US$2 bn
Bank Transfers are also significant. However, the
44% Visa 35% Mastercard
2016-2020
11%
dominance of cards is expected to weaken over
16% American Express
the next few years as alternative payment methods
become more established.
4% Local Card Schemes
1% Diners Club eCommerce turnover Desktop Mobile
Online CAGR
68SOUTH AFRICA After a cautious TOP TIP
35+15+1410543A
start, growth of
South Africa’s
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
PayPal is popular in South Africa,
55.8 Million possibly due to security concerns,
eCommerce WHO HAVE INTERNET as it does not share financial
64% information with the seller when
market has begun authorising a sale. Sellers should
to accelerate. consider offering eWallets and
2016 GDP
2015 US$0.27tn Bank Transfers as additional
MOBILE SUBSCRIPTIONS PER CAPITA
payment methods, to enhance
1.75 the consumer experience.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
South Africa’s eCommerce market is still in Credit Card 35% Cash on Delivery 10%
early stages of growth, predominately due to its Bank Transfer 15% PrePay 5% 2020
underdeveloped infrastructure, with relatively low Debit Card 14% Pre-Paid 4% US$5 bn
74+100
6363
43+55+
online transaction volumes compared to global eWallet 14% Others 3%
standards. One reason for this is a perceived lack 2016
of security, with 32% of Internet users quoting lack US$3 bn
PAYPAL CASH ON BANK TRANSFER
US$4 bn DELIVERY
of trust in the payment systems as the reason for
not purchasing online. There is evidence that this
US$3 bn
is changing however, as South Africa’s eCommerce
sector is now picking up pace, especially in CARD SCHEME BREAKDOWN US$2 bn
320+155+15+10=
mCommerce, where in 2015, some 27% of users US$1 bn
made payments via a mobile device. Although
Bank Transfers and eWallets are also popular, cards
dominate the overall payments landscape, claiming
64% Visa 31% Mastercard
2016-2020
8%
nearly 50% of transactions in 2015. However, this
3% American Express
figure is expected to fall by 2020 as alternative
payment methods grow in popularity.
2% Diners Club
eCommerce turnover Desktop Mobile
Online CAGR
70SOUTH KOREA Rapid growth in TOP TIP
64+10+6543A
mobile payments
is one of the
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
50.8 Million 44% of South Koreans who pay via
factors loosening WHO HAVE INTERNET mobile make online purchases
85% up to three times per month.
the grip of To gain customer loyalty and
enhance customer experience,
Credit Cards.
2016 GDP
2015 US$1.32tn make sure payment information
is visble and inform shoppers on
MOBILE SUBSCRIPTIONS PER CAPITA
how their details may or may not
1.20 be used.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 64% Cash on Delivery 5%
Debit Card 10% Bank Transfer 4% 2020
Others 6% PrePay 3% US$38 bn
74+100
6358
33+50+
eWallet 5% Pre-Paid 3%
2016
PAYPAL DOMESTIC BANK TRANSFER
US$33 bn CARDS
Although the rapid expansion of South Korea’s
eCommerce market between 2011 and 2014 has CARD SCHEME BREAKDOWN US$18 bn
US$20 bn
slowed significantly, the sector is still growing
285+150+30+30+105+ =
steadily. This is particularly true in the mCommerce US$20 bn
sector, where mobile payments grew by 59% in
2015 (YoY). However, Credit Cards are still the most
common form of online payment, but compared 31% Visa 28% Others
16% Mastercard
to last year’s percentage of 68%, there are signs
16% BC Card US$13 bn
2016-2020
4%
of weakening – a decline which is expected to 5% UnionPay
continue in the future, as alternative payment
methods become increasingly popular.
2% JCB
2% American Express eCommerce turnover Desktop Mobile
Online CAGR
72SPAIN A strong mobile TOP TIP
26+24+2110853A
sector is playing
a major role
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
46.3 Million
in the steady WHO HAVE INTERNET In 2015, 22% of online shoppers did
81%
growth of Spain’s not return to a website because
it did not offer their preferred
eCommerce
2016 GDP
payment method. Spanish
2015 US$1.24tn eCommerce sites must provide
market. MOBILE SUBSCRIPTIONS PER CAPITA
1.07
alternative payment methods
such as eWallets to attract and
retain shoppers.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 26% Bank Transfer 8%
Debit Card 24% Pre-Paid 5% 2020
eWallet 21% PrePay 3% US$34 bn
74+100
6377
12+22+
Cash on Delivery 10% Others 3%
Spain’s eCommerce market has begun to expand 2016
significantly after a slow start due, at least in part, US$30 bn
PAYPAL TRUSTLY BANK TRANSFER
US$26 bn
to the effects of the country’s recent financial
crisis. Much of this growth is driven by a high level
US$24 bn
of mobile activity that will most likely see Spain’s
mobile eCommerce market more than triple CARD SCHEME BREAKDOWN
395+100+20=
by 2020. While cards remain a popular form of
payment, their dominance is declining, with 64%
of online shoppers naming PayPal as the preferred US$5 bn
payment in 2015. This fall in overall card usage is
74% Visa 24% Mastercard US$3 bn
2016-2020
7%
expected to continue until 2019, as consumers
2% American Express
become ever more confident with alternative
payment methods. eCommerce turnover Desktop Mobile
Online CAGR
74SWEDEN In a steadily TOP TIP
44+15+14117512A
growing market,
cards remain
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
9.9 Million
the single most WHO HAVE INTERNET
Due to significant growth in
Sweden within the eCommerce
93%
popular form industry, more alternative
payment methods are becoming
of payment.
2016 GDP
popular. Make sure you offer
2015 US$0.51tn e-invoicing as this payment
MOBILE SUBSCRIPTIONS PER CAPITA method is set to grow in popularity.
1.32
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Debit Card 44% Cash on Delivery 5%
Credit Card 15% Pre-Paid 1% 2020
Bank Transfer 14% PrePay 1% US$27 bn
74+100
6377
12+22+
E-Invoices 11% Others 2%
Despite having one of the world’s highest levels eWallet 7%
2016
of Internet penetration, Sweden’s eCommerce US$20 bn
TRUSTLY KLARNA BANK TRANSFER
US$17 bn
market accounted for just 6.4% of the country’s
total retail sales in 2014, implying that there’s room
US$14 bn
for significant further growth. In fact, Sweden’s
eCommerce market is expected to almost double CARD SCHEME BREAKDOWN
255+245=
over the period 2016 – 2020, with mobile purchases
increasing by nearly 400% in the same period.
Cards are the single most popular form of payment, US$7 bn
and their usage has increased steadily since 2013 –
51% Visa 49% Mastercard US$4 bn
2016-2020
12%
now claiming some 59% of transactions by volume.
E-Invoicing, Bank Transfer and eWallets are also
popular and set to grow over the next few years. eCommerce turnover Desktop Mobile
Online CAGR
76TAIWAN In a market where TOP TIP
31+21+15108742A
smartphone
adoption is
ECOMMERCE MIX BY PAYMENT METHODS
2016 POPULATION
23.5 Million
extremely WHO HAVE INTERNET Whilst Credit Cards dominate, it’s
84%
high, Taiwan’s important to offer Bank Transfers
and Cash on Delivery to increase
mCommerce
2016 GDP
your consumer reach.
2015 US$0.51tn
market has MOBILE SUBSCRIPTIONS PER CAPITA
1.12
massive potential.
ECOMMERCE PROJECTED GROWTH POPULAR ALTERNATIVE PAYMENT METHODS
Credit Card 31% Debit Card 7%
Bank Transfer 21% Pre-Paid 4% 2020
Cash on Delivery 15% PrePay 2% US$31 bn
74+100
6377
12+27+
PostPay 10% Others 2%
With high Internet penetration and smartphone eWallet 8%
2016
adoption, Taiwan has a steadily growing US$22 bn
CONVENIENCE CASH ON BANK TRANSFER
US$24 bn STORE PAYMENT DELIVERY
eCommerce market, and this growth is expected to
continue over the next few years. One result of the
US$19 bn
country’s enthusiasm for mobile technology has
been the introduction of several mobile payment CARD SCHEME BREAKDOWN
395+80+30+10 =
initiatives, including systems that allow users to
pay taxi fares and restaurant bills with their mobile
US$9 bn
device or to purchase products by scanning QR
codes. These developments, however are not
67% Visa 29% Mastercard US$6 bn
2016-2020
6%
likely to immediately impact Taiwan’s payments
2% JCB
landscape, which is dominated by Credit Card and
Bank Transfer.
1% American Express
1% Local Card Schemes eCommerce turnover Desktop Mobile
Online CAGR
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