Consumer Attitudes to Online Payments

  • OVERVIEW
    • Catalyst
    • Summary
    • Methodology
  • INTRODUCTION
    • Financial Services Consumer Insight: dispelling the myths surrounding online behaviors
    • At the core of this report is Datamonitor’s Online Consumer Payments Model
      • This database is built around Datamonitor’s Financial Services Consumer Insight survey
      • Differences in the interpretation of payment terminology should be considered
  • CONSUMER ATTITUDES TO ONLINE PAYMENTS
    • Changing shopping habits and rising internet access have driven online commerce growth
      • Online commerce is a €1 trillion global market, a huge payments opportunity
      • Growth in internet penetration has been an important contributor to the expansion in online commerce
      • Online commerce has increased in popularity among both consumers and merchants
    • Payment cards dominate the space, but dedicated online payment tools are a major threat
      • Payment cards account for close to two thirds of all online payments by value
    • Addressing security is key from the industry perspective, but consumers want convenience
      • Fraud is the single biggest issue in the online space, from both the consumer and industry perspective
      • On the consumer side, fear of being defrauded is also the biggest barrier to online commerce
      • Convenience, not security, is the primary driver of online payment tool choice
    • Looking to the future, the payment card must evolve if it is to remain important in this space
      • The strength of non-card payments in online commerce is a significant future challenge
      • Future growth in online will require a clearer focus on the different sub-markets in this space
      • The issue of payment security is the dominant one from the card issuer and consumer perspective
  • APPENDIX
    • Supplementary data
      • Data relating to graphics in this report not available in the accompanying Excel model
    • Definitions
      • Card-not-present (CNP) fraud
      • Charge card
      • Credit card (revolving)
      • Credit transfer
      • Debit card
      • Online payments
      • P2P (person-to-person) payments
      • Prepaid card
    • Methodology
    • Further reading
    • Ask the analyst
    • Datamonitor consulting
    • Disclaimer
  • TABLES
    • Table: Absolute online transaction values and online as a share of total retail sales, 2009
    • Table: Proportion of consumers with access to the internet, 2000–08
    • Table: Number of and proportion of consumers that have shopped online at least once, 2009
    • Table: Proportion of internet users that have shopped online at least once, 2009
    • Table: Proportion of consumers in the EU-27 countries that have shopped online in the previous three and 12 months, 2004–08
    • Table: Proportion of consumers in the EU-27 countries that have shopped online at least once in the last three months, 2008
    • Table: Proportion of consumers in the EU-27 countries that have bought a good or service online in the previous 12 months by type of purchase, 2004–08
    • Table: Proportion of consumers in the EU-27 countries that generate more than 1% of their annual sales through the internet, 2008
    • Table: Reasons given by consumers that have never shopped online, 2009
    • Table: Potential increase in online commerce from addressing consumer concerns over the retail experience or payment security, 2009
  • FIGURES
    • Figure: The global online commerce market will hit €1.09 trillion by the end of 2009
    • Figure: Online commerce accounts around 5.9% of total global retailing, 2009
    • Figure: On a per adult basis, Sweden sees the highest level of online spending per adult, 2009
    • Figure: The low percentage of online shoppers in China and India suggests strong future growth potential, 2009
    • Figure: Analysis of average spend levels per online shopper sees Sweden and Italy lead the way, 2009
    • Figure: Airlines tickets and hotels are the largest online segment, accounting for 39.8% of all online transaction values, 2009
    • Figure: The share of airlines and hotels within total online commerce ranges from 23% in China to 61% in Singapore, 2009
    • Figure: The top 20% most active consumers account for 80% of total online commerce transaction values globally, 2009
    • Figure: Internet penetration has shown consistent growth over the period 2000–08
    • Figure: Internet penetration is highest in North America but the majority of internet users are in Asia, 2008
    • Figure: One in four consumers globally has bought a good or service online at least once, 2009
    • Figure: Among those with internet access the proportion is far higher; 84% of all internet users have bought a good or service online, 2009
    • Figure: The proportion of consumers in the EU-27 that have bought online continues to rise, reaching 32% in 2008
    • Figure: There is a high degree of variance across the EU-27 in terms of online shopping, suggesting huge future potential growth across many Eastern European markets, along with Italy and Spain, 2008
    • Figure: Across the EU-27, clothing and sports goods are the most popular categories for online commerce, with 13% of consumers having bought in this category at least once in the previous year, 2004–08
    • Figure: The proportion of businesses that trade online varies considerably across the EU-27, but is nevertheless in line with online shopping patterns, 2008
    • Figure: Credit cards are the leading online payment tool, accounting for 45.3% of global online commerce transaction values in 2009
    • Figure: The share of credit cards in online commerce ranges from 21% in Russia to 66% in Japan, 2009
    • Figure: Japan is the largest market for credit card use online, while the US is the largest market for the use of credit and debit cards, 2009
    • Figure: Italy sees the highest value of prepaid card transactions in online commerce, ahead of India, 2009
    • Figure: The most active online shoppers make the greatest use of credit cards for their payments, 2009
    • Figure: UK CNP fraud losses have more than doubled between 2004 and 2008
    • Figure: Concern about fraud is the single biggest reason preventing consumers from shopping online, although dislike of the online retail experience is almost as important a factor, 2009
    • Figure: Consumers in China are most concerned about the security of payments and delivery of online goods, while those in Russia are more affected by the quality of the retail experience, 2009
    • Figure: Addressing concerns about the retail experience would create an additional market opportunity five times greater than addressing concerns about fraud
    • Figure: Despite being rated as the least secure form of payment tool online, credit cards account for the greatest share of the market, suggesting a possible negative correlation between factors, 2009
    • Figure: The correlation between convenience and payment tool choice is overwhelmingly positive, 2009
    • Figure: No payment tool is rated by consumers as offering a blend of high convenience and also a high degree of security, 2009
    • Figure: Rewards and financing are key factors behind the use of credit cards online, whereas merchant acceptance is very important for PayPal, 2009
    • Figure: The breakdown of non-card online payments varies across each country but is nevertheless a significant proportion, 2009
    • Figure: Payment cards are strong in the area of ‘traditional’ good and service retailing online but fall short in the areas of micropayment and P2P settlements

Report

Published by
Datamonitor
Published on
27 Nov 2009
Product code
DMFS2398
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