A new report suggests that alternative payment methods will drive 50% of B2C ecommerce payments. yStats.com reports PayPal, Amazon and Google Wallet are fueling this growth with AliPay, Alibaba’s payments arm, contributed significantly as its user base grows and more global sites accept AliPay for payment.
This growth represents a particularly significant shift in key regions to alternative methods. For instance, today, cards account for nearly 75 percent of ecommerce transactions in North America and in Canada, cards dominant, as well. The share of alternative payments in Europe is forecasted to reach up to 20 percent of the total payments market by 2020, driven mostly via regulation that is creating incentives for alternative payments providers. Especially relevant is the Netherlands where online banking method iDeal was used in more than 50% of online ecommerce transactions. In Poland, alternative payment methods, led by bank transfer, were used by online shoppers more than credit cards.
In China, the B2C E-Commerce landscape is dominated by online and m-payments (growing 8x). Alternative payments is defined broadly to also include cash which remains the most preferred payment method in India. Cash is still widely used in Africa and Middle East where m-payment growth is increasing.
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