The Explosion in Online and Mobile Payments

The Explosion in Online and Mobile Payments

Within five years the value of the online and mobile payment market is expected to top 300 billion euros. Although payment trends vary from one region of the world to another, an overall tendency is clear: the growth of the mobile payment.

Online and mobile payment continue to thrive throughout the world. A new report published by “www.yStats.com” demonstrates that the mobile payment exceeds all other means of payment in terms of growth. This augmentation is expected to increase even further with the introduction of new payment solutions such as Apple Pay.

Customers appreciate developing technologies such as rapid checkout and “one touch” payment systems proposed by the likes of Amazon, Paypal and Apple. Another noteworthy trend is the separation of e-commerce ventures from their parent companies. This is the case for ebay, which announced its intention to separate from PayPal, whilst Alibaba is planning to part company with Alipay. Meanwhile the social networks, including Facebook, Twitter and Snapchat other players have jumped on the mobile payment bandwagon with propositions of peer to peer payment solutions.

Payment preferences around the world

In a few years time the e-commerce market in the Asia-Pacific region is expected to exceed that of North America. The online and mobile payment market is therefore of obvious interest in this part of the world. In China, there are already 300 million users of online payment. Mobile payment meanwhile has 200 million followers. Both of these types of payment are supported by third party providers. Although the Japanese mainly settle online payments by credit card or via convenience stores, new mobile payment channels were created in 2014. As for South Korea, an increase in the growth of online payments has been observed thanks in particular to government regulations and entrepreneurial innovations. In Australia the credit card remains the preferred payment method for online purchases.

Europe is the world’s third largest region for e-commerce B2C sales and offers a wide range of diversity in terms of payment types. In western Europe, the credit card remains the most popular payment method. It is the UK that has the largest online market in Europe, which is dominated by credit and debit cards. The situation is similar in France. In neighbouring Germany, the invoice remains the most common method of payment for B2C e-commerce sales, although PayPal is also widely used. Southern Europeans prefer to pay by cash on delivery or by other alternative methods.