The Alternative Payment Systems Industry in the U.S.

• Report Scope
• 1 Paper Payments
• 2 Card Payments
• 3 Electronic Payments
• Alternative Payments Defined
• Methodology
• The Market
  • Total B2C eCommerce Tops $280 Billion
  • Figure 1-1 Total Business-to-Consumer eCommerce Revenue, by Service and Retail Sectors 2000-2007 (in billions $)
  • Paper Payments Down, Cards & Electronic Payments Rise
  • Table 1-1 Total Business-to-Consumer Payments, by Medium 2000-2007 (in billions $)
  • Total Alternative Payments Dollar Volume Tops $37 Billion
  • Figure 1-2 Alternative Payments Dollar Volume 2000-2007 (in billions $)
  
  
• Market Forecast
  • Total B2C eCommerce to Reach $658 Billion
  • Figure 1-3 Total Business-to-Consumer eCommerce Revenue, by Service and Retail Sectors 2000-2007 (in billions $)
  • Payments Shift by 2010
  • Figure 1-4 Estimated Share of U.S. Personal Consumption, by Major Payment Medium 2003-2007 (percent)
  • Total Alternative Payment Dollar Volume Reaches…
  • Figure 1-5 Alternative Payments Dollar Volume 2000-2007 (in billions $)
  
  
• Marketplace Trends
  • Economic Future Uncertain
  • Population Growth, Increased per Capita Spending to Drive eCommerce Growth
  • PayPal Versus Google: Battle Royale
  • Convenience May Be Edge for Victory
  • Amazon Will Play the Winner
  • Online Alternative Bill Pay a Bank Threat?
  • Kids Lead the Way
  • Consumers Dialing Up Competition
  • Is It Safe to Shop?
  • It Ain’t Easy Being Inherently Green!
  
  
• Business Development Trends
• Business Development Trends
  • Google Grows Partner Relationship, PayPal Too!
  • Chase Goes on the Offensive
  • Merchants Embracing Alternative Payments
  • Rewards Programs Not Motivating in Alternative Payments
  • Taking Online Further
  • Safer, Old School Consumer Touches May Motivate use
  • Room for Censorship in Online Bill Pay
  • PornPal Finds a Niche
  • Google Protests eBay, eBay Retaliates
  • Fundraising through Alt Pay
  • Partnership Programs for Ecommerce Service Providers
  • Airlines Sign On
  • Discount Promotions Increase Competition, Drive Adoption
  • Word-of-Mouth Good … If It’s Good
  
  
• Competitive Overview
  • PayPal Domination
  • Opportunity in Niche
  • PayPal’s Nemesis: Google Checkout
  • A Revolution in the Making
  
  
• Consumer Use of Alternative Bill Payment Methods
  • Consumer Bill Pay Preferences
  • Table 1-2 Consumer Bill Pay Preferences, 2006 versus 2007 (%)
  • Consumer Bill Pay Demographic Characteristics: Online
  • Consumer Bill Pay Demographic Characteristics: Mail
  • Consumer Bill Pay Demographic Characteristics: In Person
  • PayPal.com Users Demographic Characteristics

Chapter 2 The Market

• Report Scope
• 1 Paper Payments
• 2 Card Payments
• 3 Electronic Payments
• Alternative Payments Defined 32
• Methodology
• eCommerce Market Size and Growth
  • Total B2C eCommerce Tops $280 Billion
  • Figure 2-1 Total Business-to-Consumer eCommerce Revenue, by Service and Retail Sectors 2000-2007 (in billions $)
  • Table 2-1 Total Business-to-Consumer eCommerce Revenue, by Service and Retail Sectors 2000-2007 (in billions $)
  • Figure 2-2 Estimated Share of Business-to-Consumer eCommerce Revenue, by Selected Service and Retail Sectors 2000-2007 (percent)
  • Figure 2-3 Share of Business-to-Consumer eCommerce Revenue to Total Business-to-Consumer, by Selected Service and Retail Sectors 2000-2007 (percent)
  
  
• Payments Market
  • Paper Payments Down, Cards & Electronic Payments Rise
  • Table 2-2 Total Business-to-Consumer Payments, by Medium 2000-2007 (in billions $)
  • Figure 2-4 Estimated Share of U.S. Personal Consumption, by Major Payment Medium 2003-2007 (percent)
  
  
• Alternative Payments Market Size and Growth
  • Total Alternative Payments Dollar Volume Tops $37 Billion
  • Figure 2-5 Alternative Payments Dollar Volume 2000-2007 (in billions $)
  • Table 2-3 Alternative Payments’ Share of Business-to-Consumer eCommerce Revenue, Total Electronic Payments and Total Consumer Payments 2000-2007 (percent)
  • Total WEB Payments Transaction Volume Reaches $2.3 Billion
  • Figure 2-6 Total Automated Clearing House WEB Payments Transaction Volume 2001-2007 (in millions)
  • WEB Dollar Volume Up 40%
  • Figure 2-7 Total Automated Clearing House WEB Payments Transaction Volume 2000-2007 (in billions $)
  • Average WEB Payments Amount Rises 11%
  • Figure 2-8 Average Automated Clearing House WEB Payments Transaction 2000-2007 ($)
  
  
• Market Forecast
  • Total B2C eCommerce to Reach $658 Billion
  • Figure 2-9 Total Business-to-Consumer eCommerce Revenue, by Service and Retail Sectors 2000-2007 (in billions $)
  • Table 2-4 Total Business-to-Consumer eCommerce Revenue, by Service and Retail Sectors 2000-2007 (in billions $)
  • Payments Shift by 2010
  • Table 2-5 Total Business-to-Consumer eCommerce Revenue, by Service and Retail Sectors 2000-2007 (in billions $)
  • Figure 2-10 Estimated Share of U.S. Personal Consumption, by Major Payment Medium 2003-2007 (percent)
  • Total Alternative Payment Dollar Volume Reaches…
  • Figure 2-11 Alternative Payments Dollar Volume 2000-2007 (in billions $)

Chapter 3 Marketplace Trends

• 2008 Real GDP Growth Forecasted at a Meager 0.9%
• Figure 3-1 U.S. Current-Dollar GDP vs. Real GDP, 2002-2008 (in trillion $)
• Figure 3-2 Percentage Changes in U.S. Current-Dollar GDP, Real GDP and the GDP Price Index, 2002-2008 (%)
• Economic Future Uncertain
• Personal Consumption Slows
• Figure 3-3 Personal Consumption Expenditures, Current-Dollar versus Real, 2000-2007 (in billions $)
• Figure 3-4 Percentage Changes in U.S. Current-Dollar GDP, Real GDP and the GDP Price Index, 2002-2008 (%)
• Population Growth, Increased per Capita Spending to Drive eCommerce Growth
• Figure 3-5 Total U.S. Resident Population (in millions), Retail Sales per Capita and eCommerce Retail Sales per Capita, 2000-2012
• Table 3-1 Total U.S. Resident Population (in millions), Retail Sales per Capita and eCommerce Retail Sales per Capita, 2000-2012
• Convenient and Safe, Online Spending Grows Apace
• PayPal Versus Google: Battle Royale
• Convenience May Be Edge for Victory
• Amazon Will Play the Winner
• Online Alternative Bill Pay a Bank Threat?
• More than Just Payments
  • Peer-to-Peer Lending Invades
  • Next Up: Secure Vault Payments from NACHA
  • Kids Lead the Way
  • Consumers Dialing Up Competition
  • North America Playing Mobile Catch-Up
  • Cell Phones and Youth: A Love Match
  • Obopay Adaptation of PayPal Model
  • Both Parties Must Have Obopay Account
  • Obopay Leads Youth-Oriented Cell Phone Banking
  • Parental Controls
  • Mobile Competition Will Be Hot
  • PayPal Mobile Checkout
  • ClairMail System
  • Amazon TextBuyIt
  • MobiBucks
  • Sapphire Mobile Systems
  • Verizon and Wachovia Team Up
  • Mobile Pay Still Faces Challenges
  • Is It Safe to Shop?
  • Figure 3-6 PayPal Fraud-Loss Rate, 2001-2007 (%)
  • Consumer Safety Point of View
  • Activity to Prevent Fraud
  • It Ain’t Easy Being Inherently Green!
  • PayItGreen Alliance

Chapter 4 Business Development Trends

• Google Grows Partner Relationships
• Chase Goes on the Offensive
• Enter Digital Currency
• Old Gold the New Standard
• Diversity of Funding
• New Horizons for Online Alternative Bill Payments
• The Social Network Connect
• Merchants Embracing Alternative Payments
• Adoption Key to Developing Consumer Relationships
• Rewards Programs Not Motivating in Alternative Payments
• Taking Online Further
• Join and Embrace Consumer Dialogue
• Safer, Old School Consumer Touches May Motivate use
• Room for Censorship in Online Bill Pay
• PornPal Finds a Niche
• Google Protests eBay, eBay Retaliates
• Fundraising through Alt Pay
• Partnership Programs for Ecommerce Service Providers
• Airlines Sign On
• Figure 4-1 Percent of All Americans Who Have Bought or Made Travel Reservations Online, 2007 (%)
• Discount Promotions Increase Competition
• Promotion Drive Adoption
• Word-of-Mouth Good … If It’s Good
• Important Youth Usage Driver

Chapter 5 Competitor Profiles

• Overview: PayPal Domination
• Opportunity in Niche
• PayPal’s New Nemesis: Google Checkout
• A Revolution in the Making
• PayPal (eBay)
  • Overview
  • Performance
  • Figure 5-1 PayPal Net Transaction Revenue and Payments Volume Yield 2000-2007 (in millions $)
  • Figure 5-2 Estimated Share of PayPal Transaction Revenue, U.S. versus International, 2001-2007 (percent)
  • Figure 5-3 Total PayPal Payments and Average Revenue per Transaction 2000-2007 (in millions)
  • Figure 5-4 Total PayPal Payment Volume and Average Dollar Value per Transaction 2000-2007 (in billions $)
  • Figure 5-5 Total PayPal Accounts at Year-End 2000-2007 (in billions $)
  
  
• Bill Me Later
  • Overview
  • Performance
  • Figure 5-6 Estimated Bill Me Later Revenue 2003-2007 (in millions $)
  • Figure 5-7 Estimate Total Bill Me Later Accounts at Year-End 2000-2007 (in billions $)
  
  
• eBillMe (MODASolutions Inc.)
  • Overview
  
  
• Revolution
  • Overview
  
  
• OboPay
  • Overview
  
  
• Google Checkout
  • Overview
  
  
• eLayaway
  • Overview
  
  
• Amazon Payments (Amazon.com)
  • Overview
  
  
• Other Alternative Payment Players

Chapter 6 Consumer Trends

• Note on Consumer Data
• Consumer Use of Alternative Bill Payment Methods
  • Consumer Bill Pay Preferences
  • Table 6-1 Consumer Bill Pay Preferences, 2006 versus 2007 (%)
  • Consumer Bill Pay Demographic Characteristics
  • Table 6-2 Demographic Characteristics by Type of Bill Pay Method Preferred: Online, 2007 (%)
  • Table 6-2 [Cont.] Demographic Characteristics by Type of Bill Pay Method Preferred: Online, 2007 (%)
  • Table 6-3 Demographic Characteristics by Type of Bill Pay Method Preferred: By Mail, 2007 (%)
  • Table 6-4 Demographic Characteristics by Type of Bill Pay Method Preferred: By Phone, 2007 (%)
  • Table 6-5 Demographic Characteristics by Type of Bill Pay Method Preferred: Automatic Deduction, 2007 (%)
  • Table 6-6 Demographic Characteristics by Type of Bill Pay Method Preferred: In Person, 2007 (%)
  • PayPal.com Users Demographic Characteristics
  • Table 6-7 Consumer Use of PayPal.com, 2006 versus 2007 (%)
  • Table 6-8 Demographic Characteristics of PayPal.com Users, 2007 (%)
  • A Look at Selected Consumer Attitudes by Payment Preference
    • Attitudes About Shopping
    • Table 6-10 Selected Attitudes About Shopping: Any Agree, 2007 (index)
    • Attitudes about Personal Finance
    • Table 6-11 Selected Attitudes About Personal Finance: Any Agree, 2007 (index)
    • Attitudes about the Internet and Internet Lifestyle
    • Table 6-12 Selected Attitudes About Internet Lifestyle: Any Agree, 2007 (index)
    
    
  • Pew Online Shopping Survey
    • Research Is Top Activity
    • Table 6-13 Online Shopping Activities
    • Low Income Earners Less Likely to Shop Online
    • Online Shopper Demographics
    • Fear May Help Drive Alternative Payments
    • Table 6-16 Attitudes About Online Shopping: Internet Users, 2007 (%)

Appendix: Selected list of Marketers