Product Brochure: Global Online Payment Methods: Second Half 2016

GLOBAL ONLINE PAYMENT METHODS: SECOND HALF 2016 PUBLICATION DATE: JANUARY 2017

PAGE 2 GENERAL INFORMATION I PAGE 3 KEY FINDINGS I PAGE 4-9 TABLE OF CONTENTS I PAGE 10 REPORT-SPECIFIC SAMPLE

CHARTS I PAGE 11 METHODOLOGY I PAGE 12 RELATED REPORTS I PAGE 13 CLIENTS I PAGE 14-15 FREQUENTLY ASKED QUESTIONS

PAGE 16 ORDER FORM I PAGE 17 TERMS AND CONDITIONS

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Global Online Payment Methods: Second Half 2016

Report

Online Payment

Africa, Asia-Pacific, Europe, Latin America, Middle East, North

America

Australia, Brazil, Canada, China, Colombia, France, Germany, India,

Indonesia, Italy, Japan, Kenya, Mexico, Nigeria, Poland, Russia, Saudi

Arabia, South Africa, South Korea, Spain, Sweden, Turkey, UAE, UK,

USA

English

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QUESTIONS

ANSWERED

IN THIS REPORT

What are the top payment methods used by online shoppers worldwide?

How do online shoppers’ preferences for payment options differ from country to country?

What are the most important alternative online payment methods?

What are the top online and mobile payment trends around the world?

How are mobile payments evolving?

SECONDARY MARKET

RESEARCH

Our reports are exclusively based on secondary market research. Our researchers derive

information and data from a variety of reliable published sources and compile the data into

understandable and easy-to-use formats.

ADVANTAGES Maximum Objectivity

Reliable Sources

Up-To-Date Analysis

Boardroom-Ready PowerPoint Presentations

Guidance For Strategic Company Decisions

GLOBAL ONLINE PAYMENT METHODS: SECOND HALF 2016

EMERGING MARKETS LEADING THE GLOBAL ONLINE PAYMENT TRANSFORMATION

The preferences of online shoppers with regard to payment methods continue to

differ worldwide. Having accepted this fact, two thirds of online retailers now offer at least 3

different payment options, according to an international survey from 2016 cited in the

yStats.com report. Although credit and debit cards still account for the highest share of

global E-Commerce 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.

The fast growing emerging markets stand behind this global trend. Lower bank card

penetration in these countries compared to advanced markets encourages the search for

new alternatives, thus facilitating payment innovation. This is best seen in proliferation of

mobile payments: consumers in regions such as Latin America and Asia-Pacific rank above

the global average for willingness to use mobile payments, according to recent research

cited in the yStats.com publication. Another 2016 survey suggests that smartphone owners

in India, South Korea, South Africa and the UAE are more likely to be using mobile wallets

than those in the USA, the UK or Germany.

Whether in emerging or advanced markets, payment security is one of online

shoppers’ top considerations when paying for purchases. While established online payment

security measures like 3D Secure authentication remain valid, new authentication methods

are being developed to answer the demand for increased payments safety. As the

yStats.com report reveals, fingerprint ID is one of the top innovative measures that online

shoppers are willing to use in the near future.


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MANAGEMENT SUMMARY

GLOBAL DEVELOPMENTS

Online and Mobile Payment Trends, H2 2016

Breakdown of E-Commerce Sales by Payment Methods, in %, 2015 & 2020f

Breakdown of the Number of Online Payment Options Offered, in % of Online Merchants, January 2016

Top 3 Payment Methods Preferred in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, August

2016

Top 3 Considerations When Choosing a Payment Method in Cross-Border Online Shopping,

in % of Cross-Border Online Shoppers, August 2016

Reasons To Choose the Preferred Payment Method in Cross-Border Online Shopping, in % of Cross-Border Online

Shoppers, 2016

Security Authentication Features That Online Shoppers in the USA and the UK Would Consider Setting Up for Online

Purchases in the Next 12 Months, in %, November 2016

Mobile Payments Share of Total Consumer Card Payments, in %, 2016e & 2021f

Mobile and Wearable Contactless Payments, in USD billion, 2015 & 2018f

Breakdown of Mobile Payments by Usage Case, by Europe and North America, 2016e

Share of Internet Users Who Look Forward to Being Able to Pay for More Transactions from Mobile Device, in %, by

Asia-Pacific, Europe, Latin America, the USA, and Global Average, August 2016

Contactless Payment User Penetration, in % of Banked Population, July 2016

Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, by Selected Regions, August 2016

Products and Services Paid for via Mobile Wallet, in % of Mobile Shoppers Who Paid with Mobile Wallet, August 2016

Share of Mobile Shoppers Paying with Mobile Wallets, by Selected Countries, in %, August 2016

Probability of Using Mobile Wallets, in % of Smartphone Owners, by Selected Countries, July 2016

ASIA-PACIFIC

3.1. ADVANCED MERKETS

3.1.1. JAPAN

Online and Mobile Payment Trends and News about Players, H2 2016

Top Places to Use Credit Card, incl. “Online Shopping/Mail Order”, in % of Internet Users Who Used Credit Card in

the Previous 6 Months, November 2016

Breakdown of Attitude to Being Asked to Enter a Password or Other Identification in Addition to Credit Card Number

and Expiration Date When Shopping Online, in % of Adults, July 2016

Mobile Payments Solutions Used for Payment In-Store, in % of Internet Users, August 2016

3.1.2. SOUTH KOREA

Daily Average Value of Mobile Card Payments, in KRW billion, 2014 & 2015

Reasons for Not Using Mobile Financial Services, by Score, in %, 2015

3.1.3. AUSTRALIA

Share of Credit Cards in Number of Domestic B2C E-Commerce Payments, in %, FY 2010/11 and FY 2015/16

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GLOBAL ONLINE PAYMENT METHODS: SECOND HALF 2016 TABLE OF CONTENTS

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ASIA-PACIFIC (CONT.)

3.2. EMERGING MARKETS

3.2.1. CHINA


Payment Methods Used in Online Shopping, in % of Online Shoppers, 2016

Number of Online Payment Users, in millions, and Penetration, in % of Internet Users, 2012 – 2015 & June 2016

Third-Party Online Payment Volume, in CNY trillion, by Two Comparative Estimates, Q1 2015 – Q2 2016 Breakdown of Third-Party Online Payment GMV by Players, in %, by Two Comparative Estimates, Q1 2016

Number of Mobile Payment Users, in millions, and Penetration, in % of Mobile Internet Users, 2014, 2015 & June

2016

Third-Party Mobile Payment Volume, in CNY trillion, by Two Comparative Estimates, Q1 2015 – Q2 2016

Breakdown of Third-Party Mobile Payment GMV by Players, in %, by Two Comparative Estimates, Q1 2016

3.2.1. INDIA


Breakdown of E-Commerce Payment Volume by Payment Methods, in %, 2015 & 2020f

Value of Payment Transactions by Selected Non-Cash Payment Methods, in INR billion, Volume, in millions, and

Change, in %, incl. Mobile Wallets, FY 2014-2015 & FY 2015-2016

3.2.1. INDONESIA

Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, December 2016

EUROPE

4.1. REGIONAL

Payment Methods Preferred in Online Shopping, in % of Online Shoppers, by Belgium, Germany, France, Italy, the

Netherlands, the Nordics, Poland, Spain and the UK, May 2016

Share of Online Shoppers Who Abandoned Shopping Cart Due to Lack of Favorite Payment Method, in %, by

Benelux, Germany, Nordics and the UK, June 2016

Breakdown of Retail Payment Transactions by Methods, incl. Mobile, in %, 2016

Top 10 Countries By Mobile Payment User Penetration, in % of Surveyed Internet Users, September 2016

Expectations Regarding the Provision of Technical Support for Mobile Payments, in % of Millennials, by Germany,

Italy, the Netherlands, and the UK, July 2016

4.2. WESTERN EUROPE

4.2.1 UK


Payment Methods Most Trusted in Online Shopping, in % of Online Shoppers, November 2016

Value of E-Commerce Payments with Credit and Debit Cards, in GBP million, and Volume, in millions, by Retail and

Services Sector, 12 Months to November 2016

Use of Mobile Payments, by Contactless, In-App and In-Store, in % of Smartphone Owners with a Credit/Debit Card,

2016


TABLE OF CONTENTS

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EUROPE (CONT.)

4.2. WESTERN EUROPE (CONT.)

4.2.2. GERMANY


Breakdown of B2C E-Commerce Sales by Payment Methods, by incl. Amazon and excl. Amazon, in %, 2015

Payment Methods Used in Online Shopping, in % of Online Shoppers, July 2016

Breakdown of the Use of 3D Secure Authentication, in % of Online Retailers, 2015

Awareness of Mobile Payment Providers, incl. Mobile Wallets, in % of Adults, January 2016

4.2.3. FRANCE

Share of Respondents Who Used 3D Secure, in %, 2015 & 2016

Breakdown of Readiness to Pay via Mobile Phone, in % of Internet Users, June 2016

4.2.4. SPAIN

Payment Methods Used in Online Shopping, in % of Online Shoppers, 2015 & 2016

4.2.5. ITALY

Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2016

4.2.6. SWEDEN

Payment Methods Used and Preferred in Online and Mobile Shopping, in % of Online Shoppers, Q2 2016

4.3. EASTERN EUROPE

4.3.1. RUSSIA

Share of Online Shoppers Paying by Bank Card and by Cash on Delivery, in %, October 2016

Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2016

Online Payment Value, in RUB billion, and in % Year-on-Year Change, 2014 – 2017f

Breakdown of Awareness and Usage of Contactless Payments, by Contactless Bank Cards and Contactless Payment

with Mobile Phone, in % of Adult Population, by Total, With and Without Higher Education, October 2016

4.3.2. POLAND

Payment Methods Used in Online Shopping, in % of Online Shoppers, 6 Months to December 2016

Types of Mobile Payment Used, in % of Mobile Payment Users, 6 Months to December 2016

4.3.3. TURKEY

Number of Domestic E-Commerce Transactions with Bank Cards, in millions, and Value, in TRY million, Q1 2014 – Q3

2016

Number of Cross-Border E-Commerce Transactions with Domestic Bank Cards, in millions, and Value, in TRY million,

Q1 2014 – Q3 2016

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TABLE OF CONTENTS

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NORTH AMERICA

5.1. REGIONAL

Digital Payment Methods Used at Least Weekly, by Current Use and Future Use, in % of Consumers, July 2016

5.2. USA


Top 3 Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2015 & 2016

Payment Methods Perceived as Safest for In-Store and Online Purchases, in % of Consumers, 2016

Payment Methods Most Trusted in Online Shopping, in % of Online Shoppers, November 2016

Mobile Payments, by Mobile App/Browser and Mobile Proximity Payments, in USD billion, 2013 – 2020f

Breakdown of Retail Payment Transactions by Methods, incl. Mobile, in %, 2016

Proximity Mobile Payment Transaction Value, in USD billion, and Breakdown by Transaction Value, in %, 2015 – 2020f

Breakdown of Proximity Mobile Payment Users by Age Group, in %, 2016

Breakdown of Attitude to Using Mobile Device to Pay for Transactions at a Store Checkout Counter, in % of

Consumers, October 2016

Factors that Make Consumers Hesitant to Use Mobile Payment Services, in % of Internet Users, February 2016

Digital Wallets Used, in % of Internet Users, August 2016

Volume of In-Store Payments with Android Pay, Apple Pay and Samsung Pay in the USA, in USD billion, 2016e

Number of In-Store Monthly Users of Android Pay, Apple Pay and Samsung Pay in the USA, in millions, 2016e

Selected Data Related to Usage of Android Pay, Apple Pay and Samsung Pay in the USA, incl. Awareness, Usage for

Purchase, Frequency of Usage, Average Number of Cards Loaded, and Satisfaction Rating, June 2016

5.3. CANADA

Breakdown of E-Commerce Transaction Value by Payment Method, in %, 2015

Breakdown of Frequency of Using Mobile Phone as a Payment Device, in % of Consumers, 2014 - 2016

Companies Most Trusted with Providing a Mobile Payment Service, in % of Consumers, July 2016

Circumstances That Would Make Internet Users in Canada More Likely to Use a Mobile Wallet, in % of Internet Users,

April 2016

LATIN AMERICA

6.1. REGIONAL

Payment Methods Used in Online Shopping, in % of Online Shoppers With Bank Account, July 2016

Penetration and Usage of Contactless Cards and Mobile Payment, in % of Consumers With Bank Account, July 2016

6.2. BRAZIL

Online and Mobile Payment Trends and News About Players, H2 2016

Breakdown of B2C E-Commerce Sales by Payment Methods, in %, 2015

Breakdown of Online Shoppers’ Preference for Payment in Installments, in %, H1 2016

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LATIN AMERICA (CONT.)

6.3. MEXICO

Top 10 Payment Methods Used in Online Shopping, in % of Online Shoppers, 2015 & 2016

Online Payment Methods Used in Online Shopping, by Device Used, in % of Online Shoppers, August 2016

Offline Payment Methods Used in Online Shopping, by Device Used, in % of Online Shoppers, August 2016

Reasons for Not Storing Credit/Debit Card Information With Online Shops, in % of Online Shoppers, 2015 & 2016

Number of Authorized Payment Transactions on E-Commerce Websites, in millions, Value, in MXN billion, and

Authorization Rate, in % of Transactions and in % of Transaction Value, by Credit Cards and Debit Cards, Q1 2015 –

Q3 2016

Chargeback Rate, in % of Number of Authorized Payment Transactions on E-Commerce Websites and in % of Their

Value, by Credit Cards and Debit Cards, Q1 2015 – Q3 2016

6.4. COLOMBIA

Share of Online Shoppers Preferring to Pay by Credit Card, in %, June 2016

Breakdown of Online Payment Made Through Payment Gateways by Credit Cards, Debit to Bank Account and

Others, 2014 & 2015

MIDDLE EAST

7.1. REGIONAL

• Share of Online Shoppers in MENA Who Prefer to Pay with Cash on Delivery, in %, March 2016

• Breakdown of Share of Cash On Delivery, in % of E-Commerce Companies in MENA, October 2016

• Share of Cash On Delivery in Total Online Shopping in the Middle East, in %, 2015

• Devices Preferred for Mobile Payment in the Middle East and Africa, in % of Internet Users with Bank Accounts,

Summer 2016

• Breakdown of Attitude to Mobile Payment and Shopping-Related Activities, in % of Online Shoppers in MENA, March

2016

7.2. UAE

• Breakdown of Online Shoppers by Shoppers Who Prefer to Pay Online and Who Prefer to Pay On Delivery, in %,

November 2016

7.3. SAUDI ARABIA

Top Payment Method Preferred in Online Shopping, by Selected Product Categories, in % of Millennial Online

Shoppers, 2015

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AFRICA

8.1. REGIONAL

Payment Methods Most Used in Online Shopping, in % of Online Shoppers, by Ghana, Kenya, South Africa, Uganda,

December 2016

8.2. SOUTH AFRICA

• Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, March 2016

• Share of Online Shoppers Who Would be Motivated to Shop Online More by Availability of the “On Delivery” Payment

Method, in % of Online Shoppers, March 2016

• Top Improvements That Would Make Online Shoppers Buy Online More, in % of Online Shoppers, March 2016

8.3. NIGERIA

• Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers

8.4. KENYA

Mobile Payment Statistics, incl. Number of Transactions, in millions, Value of Transactions, in KES billion, Number of

Customers, in millions, and Number of Agents, in thousands, 2008 – 2015 & First Nine Months of 2016

Purposes of Using Mobile Money Services, in % of Mobile Money Users, October 2016

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REPORT-SPECIFIC SAMPLE CHARTS

GENERAL METHODOLOGY OF OUR MARKET REPORTS Secondary Market Research

The reports are compiled based on secondary market research.

Secondary research is information gathered from previously published

sources. Our reports are solely based on information and data acquired

from national and international statistical offices, industry and trade

associations, business reports, business and company databases,

journals, company registries, news portals and many other reliable

sources. By using various sources we ensure maximum objectivity for all

obtained data. As a result, companies gain a precise and unbiased

impression of the market situation.

Cross referencing of data is conducted in order to ensure

validity and reliability.

The source of information and its release date are provided on

every chart. It is possible that the information contained in one chart is

derived from several sources. If this is the case, all sources are mentioned

on the chart.

The reports include mainly data from the last 12 months prior

to the date of report publication. Exact publication dates are mentioned in

every chart.

Definitions

The reports take into account a broad definition of B2C E-

Commerce, which might include mobile commerce. As definitions may

vary among sources, exact definition used by the source (if available) is

included at the bottom of the chart.

Chart Types

Our reports include text charts, pie charts, bar charts, rankings,

line graphs and tables. Every chart contains an Action Title, which

summarizes the main idea/finding of the chart and a Subtitle, which

provides necessary information about the country, the topic, units or

measures of currency, and the applicable time period(s) to which the data

refers. With respect to rankings, it is possible that the summation of all

categories amounts to more than 100%. In this case, multiple answers were

possible, which is noted at the bottom of the chart.

Report Structure

Reports are comprised of the following elements, in the following

order: Cover page, preface, legal notice, methodology, definitions, table of

contents, management summary (summarizing main information

contained in each section of report) and report content (divided into

sections and chapters). When available, we also include forecasts in our

report content. These forecasts are not our own; they are published by

reliable sources. Within Global and Regional reports, we include all major

developed and emerging markets, ranked in order of importance by using

evaluative criteria such as sales figures.

Notes and Currency Values

If available, additional information about the data collection, for

example the time of survey and number of people surveyed, is provided in

the form of a note. In some cases, the note (also) contains additional

information needed to fully understand the contents of the respective data.

When providing information about amounts of money, local

currencies are most often used. When referencing currency values in the

Action Title, the EUR values are also provided in brackets. The conversions

are always made using the average currency exchange rate for the

respective time period. Should the currency figure be in the future, the

average exchange rate of the past 12 months is used.

METHODOLOGY OF OUR GLOBAL ONLINE PAYMENT METHODS: SECOND HALF 2016

Report Coverage

This report covers the global online payment market. It takes

into account a wide definition of online payment, including payment

methods used in online shopping and mobile payment, such as remote

and proximity payments.

Major B2C E-Commerce markets in all global regions are

covered, including advanced and emerging, while data availability varied

across the countries.

The report includes data mostly published within the last six

months of 2016. The exact date of publication of the source is stated on

each chart. The time period which the data refers to differs by source.

Report Structure

The global chapter opens the report, featuring an overview of

global online and mobile payment developments. The rest of the report is

divided by regions presented in the descending order of B2C E-Commerce

sales.

Within each region, the countries are also ranked by B2C E-

Commerce sales and, where applicable, grouped by advanced and

emerging markets. Furthermore, where available, regional information was

also included.

Depending on data availability, the following types of market

information are included: the most used and/or most preferred payment

methods among online and mobile shoppers, information about online and

mobile payment users, such as security perceptions, breakdown of E-

Commerce sales by payment methods, number and value of online/mobile

payment transactions.

Not all the mentioned types of information are available for each

of the covered countries. For selected leading advanced and emerging

countries, also online and mobile payment trends and news about major

players, such as payment providers, banks and retailers are presented on

text charts.


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Global Mobile Wallets 2017: Competitors and Market Opportunities Methods

Apple Pay Profile 2017

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January 2017

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Samsung Pay Profile 2017

Android Pay Profile 2017

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Global Mobile Online Payment Methods: First Half 2016

Europe Online Payment Methods: First Half 2016

Global Alternative Online Payment Methods: First Half 2016

Global Online Payment Methods: First Half 2016

Asia-Pacific Online Payment Methods: First Half 2016

Fraud and Security in Global Online Payment 2016

Company Profiles of 10 Leading Online Payment Service Providers 2015

October 2016

October 2016

September 2016

September 2016

September 2016

October 2016

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Trends in Worldwide Internet Retail 2016

Global B2C E-Commerce Market 2016

Top Players in Global E-Commerce Market 2016

November 2016

July 2016

June 2016

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Japan B2C E-Commerce Sales Forecasts: 2016 to 2020

UK B2C E-Commerce Sales Forecasts: 2016 to 2020

China B2C E-Commerce Sales Forecasts: 2016 to 2020

USA B2C E-Commerce Sales Forecasts: 2016 to 2020

Top 5 Country B2C E-Commerce Sales Forecasts: 2016 to 2020

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November 2016

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Middle East B2C E-Commerce Market 2016 May 2016 € 1,950

Africa B2C E-Commerce Market 2016 May 2016 € 1,950

Latin America B2C E-Commerce Market 2016

Europe B2C E-Commerce Market 2016

Central Asia & Caucasus B2C E-Commerce 2015

North America B2C E-Commerce Market 2015

Asia-Pacific B2C E-Commerce Market 2015

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Business

Product Brochure: Global Online Payment Methods: Second Half 2016