San Francisco, CA, USA
May 25, 2006Online Payment Providers:
Disrupting the Status Quo
Report Published by Celent
Credit cards are the most popular means to pay for
online goods and services, but alternative online payments will account
for 26% of e-commerce volume by 2009.
A sea change is underway in the online payments
world, with credit cards losing dominance as new payments options emerge.
Credit cards accounted for over 90% of online payment volume in 2000, but
will only account for a minority of e-commerce dollar volume by 2009. This
shift will have significant implications for banks, merchants, and service
providers supporting card-not-present risk for online merchants.
Today’s online payment options (such as PIN debit,
alternative credit, email, and ACH consumer push) will also offer
cross-channel solutions for merchants that operate in the physical and
digital world, threatening the traditional brick-and-mortar turf of card
issuers. The significantly enhanced consumer and merchant value
propositions associated with the next wave of online payment options are
making payments strategic assets that can contribute directly to a
merchant’s top and bottom line growth if implemented and marketed
appropriately.
"There is growing recognition among
the online community that online payment alternatives to the credit and
debit card can do far more than lower costs," says
Dan Schatt, senior analyst in
Celent’s Banking group and author of the report. "They can serve as
allies to merchants in their quest to convert more prospects into sales in
a way that contributes positively to the customer experience and actually
lowers risk. As merchants search for any edge that can increase loyalty
and lower shopping cart abandonment, they will enlist new providers that
can do more to increase their profitability."
In this report, Celent profiles alternative
online payment companies and initiatives with the highest potential for
growth and adoption. Celent also examines the alternative online payments
market by providing a ranking relative to specific merchant and consumer
criteria. The report also examines the positioning of specific payment
providers and provides a glimpse as to how the US online payments market
will evolve in the next few years.
A table
of contents is available online.
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