New online and mobile payment methods are being developed by

June 3, 2013 - PRLog -- According to the report, new online and mobile payment methods are being developed by and are increase in acceptance by merchants and consumers, not only for online purchases but also at traditional brick and mortar stores. One of these innovations is Near Field Communication, which is expected to increase exponentially and account for over half of total mobile payments worldwide by 2017. Hybrid payments combining online and mobile methods are emerging as well: MasterCard already introduced such a solution earlier this year, while Visa entered a partnership with Samsung to encourage development of mobile payments. Meanwhile, PayPal surpassed its revenue targets in 2012, more than tripling the value of processed payments. Those innovative developments are taking place worldwide, new payment methods build on the infrastructure and consumer preferences already in place, so regional differences exist.

While the report provides an overview of global growth online and mobile payment and B2C E-Commerce, it also provides details of the developments in single countries and regions. For example, among the many findings disclosed in the report is that while North America has the highest percentage of Internet users, Asia is set to overtake North America in terms of total online sales as Internet penetration there increases, online retailer outlets expand, and online payment infrastructure develops, particularly in China and India, adding to the already widespread online shopping in Japan and South Korea.

Further developments in Asia include the increasing awareness and willingness to use mobile payment methods while online sales grow. In Japan, Mass merchants Rakuten.co.jp, Amazon.co.jp and Nissen.co.jp are leading online shops and the e-money market is dominated by payment providers operated by large retailers, banks and mobile operators. In South Korea, the share of B2C E-Commerce on total retail sales has reached 6%, with “Travel Services” and “Clothes and Fashion” categories leading, while e-money grew in popularity as a payment method in online shopping. Seeing remaining potential in China, foreign online retailers entered the E-Commerce market in 2012, but Chinese companies remain in the lead there. By 2016, it is expected that more than 700 million people, half the population of China, will access the Internet, and the number of internet shoppers will grow. Total online payment transaction value in China demonstrated strong quarter-on-quarter growth in 2011-2012. In India, B2C E-Commerce sales are expected to grow by more than +20% annually within the next few years.

In the USA, where E-Commerce is well established, two complementing major trends are M-Commerce - shopping online through mobile phones and tablets, and the move toward mobile payments.Traditional payment providers, such as card issuers and processors, online payment players, retailers and mobile operators are entering the field in increased masses. The mobile payment transaction value in the USA reached a two-digit figure in billions of Euros in 2012 and is expected to grow further as mobile commerce increases and more brick and mortar stores accept mobile payments.

Growth rates of B2C E-Commerce are expected to slow in already developed areas of Western Europe. In the UK, the share of online sales on total retail sales exceeded 10% in 2012, but year-on-year growth rates are expected to decline from 2013 onwards. Mobile payments are expected to increase in use in the UK, as the UK Payment Council intends to launch a secure mobile payment service in spring 2014 and PayPal plans to offer a mobile payment solution with the name of PayPal Here in summer 2013. Similar to other major markets, online sales in France are expected to face decreasing growth rates, as more than three quarters of Internet users are already shopping online, especially for travel services. Bank card was the preferred online payment option in B2C E-Commerce  in 2012 in France, followed by micropayment services. In Germany, online sales giants Amazon.de and Otto.de helped B2C E-Commerce revenues in Germany increase by double-digit rates in recent years. The most used online payment methods in German B2C E-Commerce in the second half of 2012 were credit card, invoice and PayPal.  Mobile NFC-based payments were not yet spread in Germany in 2012, but are expected to increase in use as banks, credit card companies and telecom operators test the technology involved. Other Western European nations are also experiencing increased B2C E-Commerce and the emergence of mobile payment methods.

Countries in Eastern Europe are also participating in the movement to online commerce and mobile and online payments. In Russia, the regional leader in Internet Use and E-Commerce, many foreign companies and investors have entered the E-Commerce market in recent years, but local mass merchant Ozon.ru and food and drug retailer Utkonos.ru were the leading players in terms of online sales. Though cash remained the main payment method in Russian B2C E-Commerce in 2012, online payments gained in both awareness and usage. By far the most popular among online payment methods in the beginning of 2013 in Russia was bank card, followed by e-money and online banking. Moreover, Russian electronic payment providers, such as Qiwi and Yandex.Money, saw a significant growth in 2012.

In addition to the full report on global E-Commerce and online payments, yStats.com has reports available on the growth of developing alternative payment methods by region.  

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