It is no secret how consumers are looking for more convenient and mobile payment solutions these days. Alternative methods – such as digital wallets – are slowly overtaking plastic cards as a popular way to buy goods and services online. A recent study conducted by WorldPay shows how more than half of the global e-commerce transactions are coming from non-traditional card payments.
Over the course of the next few years, more and more customers will start paying with alternative payment methods rather than using plastic cards. WorldPay statistics expect the number of card payments to fill to 45% of e-commerce turnover by 2019, which is just a few years away. Plastic cards were never intended to be used on the Internet to begin with, and it’s positive to see consumers taking notice of this fact as well.
Among the new “crop” of online payment methods are ewallets, bank transfers, and direct debits. Even though bank transfers take a lot longer to complete compared to card payments, many customers feel more secure using this payment method. What is especially interesting is how these alternative payment options are quickly gaining popularity in Asia Pacific and Emea.
However, the United States (28%) and China (no percentage provider at the time of publication) are lagging behind regarding embracing new payment methods. This may seem odd, considering how the most popular payment alternatives are PayPal and AliPay, both of which are available in these respective countries.
If this trend continues, the total global turnover generated by ewallets will be US$70 billion higher compared to plastic cards by 2019. This movement started back in the early 2000s when online payment methods were introduced to mainstream consumers, and people immediately took a liking to it.
Ever since smartphones and other mobile devices started gaining popularity, the e-commerce payment game was turned upside its head. New mobile payment applications are crawling out of the woodworks every week, which is both a blessing and a curse at the same time. Oversaturation in this market creates a lot of confusion for merchants and consumers, as it is impossible to use every single option at their disposal.
One often overlooked alternative payment is Bitcoin, which offers a mobile and cost-saving solution for both merchant and consumer in the e-commerce space. Additionally, Bitcoin is a very convenient payment method that can be used anywhere in the world, creating a global marketplace for sellers and buyers alike.
It will be interesting to see how the battle for mobile payment supremacy will play out over the next few years. Many Bitcoin enthusiasts feel digital currency should be accepted by the majority of e-commerce platforms by 2020, although it may happen much sooner than that. Only time will tell how this market will evolve.
What are your thoughts on mobile payments in e-commerce? What will Bitcoin’s role be in all of this? Let us know in the comments below!
Source: WorldPay Report
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