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Online Consumer Payments: The Future of Online Payments

Online Consumer Payments: The Future of Online Payments


The global online consumer payments market is forecast to continue its strong growth, with m-commerce and developing payments markets expected to drive much of this. Interoperability will become critical to success as m-commerce, e-commerce, and offline all become integrated into merchant strategies. The industry must also be aware of the barriers to growth and how to deal with them.


  • Gain an understanding of how the e-commerce and m-commerce markets will grow in the next five years and what factors will drive this growth.
  • Learn what strategies will meet the demands of the increasingly complex market and which competitors are likely to remain strong.
  • Discover the major barriers to consumer engagement in online commerce from Verdict Financial's consumer data and how to tackle them.
Reasons To Buy
  • What will the online consumer payments market look like five years from now?
  • What strategies will meet with success, and what will be likely to be out-competed as the market changes?
  • What will be needed to overcome consumer concerns about the online shopping experience and the risk of fraud?
  • What will be the main drivers of growth in the online market?
Key Highlights

Growth in online commerce will come primarily from emerging payments markets as more consumers gain access to the internet. E-commerce and m-commerce growth will be driven by different forces: e-commerce will be driven by high-value purchases, while m-commerce growth will come from smaller purchases and digital downloads in particular.

Cards will be slowly replaced tools designed for online commerce such as digital wallets and online banking e-payment (OBeP) schemes. As the market grows, partnerships between providers will become increasingly critical in cross-border online commerce, and in creating wide-ranging, interoperable payment services.

The largest barriers to consumer engagement in online commerce are consumer preferences and concerns over security. The industry should be looking to create services which are secure and create a positive user experience, though there is a balance to be struck as these factors can oppose one another.

  • Executive Summary
    • Growth online will come from a variety of factors
      • Payment tools designed for online commerce will erode cards' market share
      • The market will move towards integrated online and offline commerce
      • Mobile commerce growth will require app-based services
    • Growth may be impeded by consumer perceptions
      • Security concerns must also be addressed, but without harming convenience
  • The Future of Online Payments
    • The online payments market will continue to grow strongly
      • Growth will come from developing economies
      • Mobile commerce will account for a larger share of online payments
      • Growth will come from different sectors for e-commerce and m-commerce
    • Tools designed for online commerce will continue to replace CNP
      • Cards are perceived as being more convenient than secure
      • Digital wallets and m-commerce will accelerate the online-offline conflux
      • OBeP has potential, but more limitations than digital wallets
      • Partnerships and interoperability will become critical to online commerce
    • Competition will increase rapidly in m-commerce
      • Native app-based mobile commerce will see the fiercest competition
  • Barriers to Online Commerce
    • These barriers can be defined as preferences, access, and security
      • Access
      • Preference
      • Security
    • The strongest reason for not shopping online is consumer preference
    • Security is the barrier about which the industry can do the most
      • Concern over fraud alone will not stop consumers buying online
      • Financial institutions need to bear the brunt of fraud prevention duty
      • Fraud is a threat to issuers for multiple reasons
      • As m-commerce grows, security on mobile devices will need to tighten up
    • Consumers need to know security is there without it being obstructive
      • Customer profiling is one way of creating invisible security
      • Biometrics also have potential, but the technology is not yet ready
      • Innovative security solutions that add stages to checkout will not succeed
    • Abbreviations and acronyms
    • Definitions
      • 3-D Secure
      • Card-on-file
      • Card vaulted
      • Credit card
      • Debit card
      • Digital wallet
      • e-commerce
      • m-commerce
      • Native app
      • OBeP
      • Online commerce
      • Payment gateway
      • Smartphone
    • Methodology
      • Primary research interviews
      • Primary research survey
      • Secondary research
    • Further reading

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