Global Alternative Payment Methods: First Half 2017
While credit card remains as the top payment method used by online shoppers worldwide, alternative methods are encroaching on that lead, and in some countries, have overtaken cards’ leading position. Among the alternative payment methods used are E-Wallets like Alipay and PayPal, bank transfer, and cash on delivery. The alternative method of payment by invoice, popular in German-speaking countries of Europe and in Sweden is also mentioned in the yStats.com report.
The report highlights that inability to make payments on the Internet is one of the principle deterrents to making purchases online, pointing out the importance of development of alternative payment methods to further the growth of online retail.
Emerging markets seem especially prepared to use alternative payment methods, as shown in the payment method rankings for 30 countries cited in the yStats.com report. In Southeast Asian counties other than Singapore, cash on delivery or bank transfers are used more that credit card by online shoppers. Cash payment on delivery is also preferred by online shoppers in the Middle East.
Alternative payment methods are increasingly being used by online shoppers in countries where credit card have been the leading payment method. In the United Kingdom, nearly half of online shoppers prefer to use PayPal, according to a survey cited in the yStats.com report. Another example of this trend is Brazil, where local method Boleto Bancario rivals credit card use.