yStats reveals alternative payment methods outrun credit cards globally

Friday 17 February 2017 11:20 CET | News

yStats has issued Global Alternative Payment Methods: Second Half 2016 report and found that alternative payment methods globally account for a higher share of ecommerce sales than credit cards.

Although credit and debit cards still account for the highest share of global ecommerce sales compared to other individual payment methods, the combined share of alternative payment methods now outweighs bank card payments and accounts for more than 50% of global online retail payments.

In the coming years, through 2020, yStats forecasts that credit and debit card share will further decrease while use of alternative payments will continue to rise.

The top alternative online payment method is e-wallet, accounting for close to one-third of global ecommerce sales. It is also the second most-used payment method for cross-border online shopping. Other prominent alternative payment methods include bank transfer, direct debit, cash on delivery, payment by invoice and in-store payment.

However, when individual markets are considered, credit or debit card use remains high in advanced markets such as the US, UK, Canada, Australia, Japan and France.

Three quarters of online merchants concur with this reasoning by accepting at least 3 different online payment options, according to a 2016 survey cited in the report.

Amazon announced that 33 million of its customers, across 170 countries, now use Amazon Payments. Half of those who use the alternative payment method are Prime members. The average spend per transaction is USD 80 and the largest payment handled by the service was for USD 40,000. Almost a third of Amazon Payments transactions (32%) took place on a mobile device.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: yStats, alternative payment methods, credit cards, globally, World, report, ecommerce, online payments
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce

Industry Events