The Rise of Alternative Payments October 13, 2008
Posted by mniring in E-commerce, Online Merchants, Online Payments.Tags: Alternative Payment Methods, Alternative Payment Solutions, E-commerce, Email Payments, Online Merchants, Online Payments, Online Transactions, Payment Solution
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In the next five years, online transactions will more than double, reaching $355.2 billion, reports a consumer study in the U.S. from Javelin Research and Strategy. According to the findings, by 2012, 30% of Americans will use alternative payment solutions for internet transactions instead of relying on their credit cards. In 2007, alternative payments accounted for 14% of transactions. The study also foresees that of all the alternative payment options, email payment accounts, like the accounts offered by Paystone, will see the largest growth, reaching 11% by 2012.
What is causing this striking shift in payment processing? Increased popularity of alternative payment systems can be attributed to the current economic situation. With the credit market tightening, many people are looking to alternative payment solutions to fund their online shopping. This opens the way for services such as Paystone, that are debit based and funded by “cash” from a North American bank account, to take the place of credit card transactions.
Javelin researchers also found that people are turning to alternative payments for their convenience and enhanced security features. The Paystone system, for example, enables consumers to make online purchases without sharing any sensitive information with merchants, such as bank account numbers or billing information. This type of protection is becoming increasingly important to consumers.
Alternative payment solutions also offer benefits to merchants, and help to remedy shopping cart abandonment. By offering alternative payment options, merchants allow their customers the flexibility to choose the most convenient method of payment for them. Merchants can create new sales opportunities by catering to their customers without credit cards or who no longer want to use credit cards for their purchases.
This is not deemed a short lived fad. “Although it took nearly a decade for alternative payment methods to secure their position in the online world, it’s apparent that everyday consumers are ready to view them as a trusted and viable way to buy online,” said Bruce Cundiff, a senior analyst with Javelin Strategy & Research. A recent survey conducted by First Annapolis Consulting found that 47 percent of the top 500 online retailers in the U.S. accept at least one alternative payment method.
It is believed that with the transformation of the payments industry, alternative payment methods will become mainstream. This isn’t simply a trend… the way that people want to shop online and pay for goods is undergoing an evolution. Is your web store keeping up?
For a copy of the complete Online Payments Forecast: Alternative Payments to Go Mainstream as Consumers Seek Security and Convenience, please visit www.javelinstrategy.com/research
Sources: Ecommerce Journal, Ecommerce Times, Javelin Strategy and Research
Alipay Reaches 100 Million Mark October 1, 2008
Posted by mniring in Online Merchants, Sell to China.Tags: Alipay, China stats, Chinese consumers, E-commerce in China, eCommerce, Merchant Account, Payment Solution, Sell to China
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Alipay, China’s most popular online payment platform, reached 100 million registered users at the end of August. Alipay is now the second largest payment platform in the world, right after PayPal, with its 180 million users. Alipay currently boasts a 76% share of the online payment processing market in China.
What is particularly notable about Alipay’s success, is that they have reached the 100 million milestone in only 5 years. It took Paypal 10 years to achieve the same mark . It is also important to point out that Alipay’s member base is strictly Chinese citizens. Paypal’s user base is dispersed around the world.
The incredible speed of Alipay’s development is directly related to the development of online consumers and Interet users in China as a whole. China currently has the largest number of people online in the world, representing a mere 22% of the Chinese population.
The huge potential of this burgeoning market and its implications for online merchants wanting to sell to China, goes without saying. While online shopping rates in China currently lag behind those of other countries, it will only be a matter of time before China boasts the largest e-commerce market in the world.
Is your company ready to capitalize? Click here to find out how Paystone can help your eCommerce store tap into this massive network and start selling to China today.
Sources: Alipay.com, China Internet Network Information Center , China Tech News