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GENERAL METHODOLOGY OF 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.

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METHODOLOGY OF THE CURRENT REPORT

Report Coverage

This report covers the online payment market in North America. 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.

The report includes data mostly published in 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.

Next, information about regional development and country comparisons are included.

The rest of the report contains country-specific information. The countries in the region are presented in the descending order of B2C E-Commerce sales.

Depending on data availability, the following types of market information are included: payment methods most used by online shoppers, breakdown of E-

Commerce sales by payment methods, number and value of online/mobile payment transactions, mobile payment usage and consumer awareness of mobile

payment providers. Not all the mentioned types of information are available for each of the covered countries.

For the leading country in the region, 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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DEFINITIONS

ONLINE PAYMENT Transfer of money made over the Internet following a consumer’s payment command, includes payments for product

and service purchased in (B2C) E-Commerce and M-Commerce.

MOBILE PAYMENT A wide definition of mobile payments includes remote payments made remotely in M-Commerce and proximity

payments made in-store, such as via QR code scanning and NFC technology.

MOBILE PROXIMITY PAYMENT A mobile payment where the merchant and the consumer are present in the same location and the interaction between

the consumer’s device (card, mobile device) and the POS is conducted using a proximity technology (e.g. NFC).

NFC Near Field Communication, a set of standards for smartphones and similar devices to create radio communication by

bringing them close together or having them touch each other. In that way, contactless data exchange and transactions

can take place.

ALTERNATIVE PAYMENTS

Generally refers to payment methods other than credit card or bank card payments. Widely defined, alternative online

payment methods include bank transfers and direct debit, digital wallets, pre-paid cards and private label cards, invoice,

and digital currency. May also include cash on delivery and card schemes by local companies other than global card

brands.

E-WALLET /

DIGITAL PAYMENT SYSTEM A prepaid digital account, allowing users to store money and use it in online or mobile transactions. The examples of E-

Wallets or digital payment systems include Alipay and PayPal.

MOBILE WALLET

a software solution that enables consumers to store payment credentials, such as credit or debit card information, and

use the stored credentials to pay digitally for transactions made in-store, online or via mobile. Mobile wallets are

installed on mobile devices which are used to complete payments. The examples of mobile wallets include Apple Pay,

Samsung Pay and Android Pay.

INSTANT PAYMENTS Electronic payment solutions for retail which are available 24/7/365 and thus result in immediate or close-to-immediate

interbank clearing of transactions and crediting of the payees’ accounts and confirm the payment to the payer after

payment initiation.

B2C E-COMMERCE The sale of products (and services) through electronic transactions via the Internet from businesses to consumers.

M-COMMERCE M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through transactions via

mobile devices.

ONLINE SHOPPING Purchase of products or services by consumers via the Internet. Broadly defined, may include business to consumer

and consumer to consumer transactions.

The following expressions and definitions are used in this Online Payment market report*:

Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective

charts

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TABLE OF CONTENTS (1 OF 3)

1. Management Summary

2. Global Developments

• Online and Mobile Payment Trends, H2 2016

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

• Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2015Payment Methods Used in Online Shopping, by Regions, in

% of Online Shoppers, October 2015

• 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

• Value of Online Payment Fraud, in USD billion, 2015 & 2020f

• Breakdown of Online Payment Fraud by Segments, in % and in USD billion, 2020f

• 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

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

• Top 10 Merchant Acquirers, by Volume, in USD billion, 2015

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

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

• Mobile Proximity Payment Transaction Value, in USD billion, 2014 & 2019f

• Number of Proximity Mobile Payment Users, in millions, 2014 – 2019f

• Mobile P2P Money Transfer Transaction Value, in USD billion, 2014 & 2019f

• Number of Mobile P2P Money Transfer Users, in millions, 2014 – 2019f

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

• Mobile Payment Usage In-Store and Online, in % of Respondents, by Generation, 2015

• Perception of Security of Mobile Payments, in % of Respondents, by Generations, 2015

• 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

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TABLE OF CONTENTS (2 OF 3)

3. North America

3.1. Regional

• Payment Methods Preferred in Online Shopping, in % of Online Shoppers, October 2015

• Breakdown of All Payment Transactions by Payment Methods, incl. “Mobile Devices”, in %, by Country, 2015

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

• Mobile Payment Platforms Used, in % of Respondents, by Country, 2015

3.2. USA

• Online Payment Trends and News about Players, H1 2016

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

• General Payment Methods Used, incl. Online and Mobile Methods, in % of Internet Users, March 2016

• Online Retail Payment Value, in USD billion, 2014 & 2015

• 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

• Major Concerns Related to Online Privacy and Security Risks, incl. Payment-Related, in % of Households with Internet Users, July 2015

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

• 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

• Mobile Payment User Penetration, in % of Mobile Phone Users and Smartphone Users, 2011 - 2015

• Mobile Payment User Penetration, in % of Mobile Phone Users, by Age Group, 2015

• Mobile Payment Uses, in % of Mobile Payment Users, 2015

• Reasons for Not Using Mobile Payments, in % of Mobile Phone Users Who Did Not Use Mobile Payments, 2015

• Perception of Security of Mobile Payments, in % of Mobile Phone Users, 2013 - 2015

• Attitudes Toward Mobile Payments, in % of Consumers, by Generation, 2015

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

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

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TABLE OF CONTENTS (3 OF 3)

3. North America (Cont.)

3.3. 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

• Share of Smartphone Users Who Expect to Make More Mobile Payments in the Next Year, by Gender, Generation and Total, in %, 2015 & 2016

• Mobile Payment Apps Used, in % of Mobile Payments Users, by Gender, Generation and Total, April 2016

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1. Management Summary 10 – 12

2. Global Developments 13 – 40

3.

3.1.

3.2.

3.3.

North America

Regional

USA

Canada

41 – 76

42 – 45

46 – 69

70 – 76

14%

30%

43%

12%

25%

47%

0% 20% 40% 60% 80% 100%

PayPal

Debit Card

Credit Card

2016

2015

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“Credit Card” was the payment method most preferred by online

shoppers in the USA both in 2015 (43%) and 2016 (47%). USA: Top 3 Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2015 & 2016

in % of Online Shoppers

Survey: based on a survey of 1,000 consumers who own at least one credit and one debit card

Source: TSYS, October 2016; TSYS cited by The Financial Brand, Payments Exchange, October 2015

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20%

54%

58%

62%

71%

0% 20% 40% 60% 80% 100%

Tech Start-Ups

Larger Tech Companies

Established Retail Bank

Alternative Payment Providers

Traditional Card Providers

in % of Consumers

“Traditional card providers” were the company type most trusted by

consumers in Canada for providing a mobile payment service in 2016. Canada: Companies Most Trusted with Providing a Mobile Payment Service, in % of Consumers, July

2016

Note: does not add up to 100% due to multiple answers possible

Survey: based on a survey of 602 consumers in Canada, conducted in July; the overall margin of error is +/-1.55 percentage points at the midpoint of the 95 percent confidence

level

Source: Accenture cited by IT Business Canada, October 2016

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