Alternative payment methods including e-wallets, mobile payments and bank transfers will overtake credit card and debit card based payments globally, a new study has claimed.
The study “Your Global Guide to Alternative Payments” undertaken by WorldPay reveals that payments made through cards will decline to 41 percent by 2017, while online purchases made using alternative payment methods will rise by 59 percent by 2017.
E-wallet based payments which stood at $295 billion in 2012 is set to rise five-folds to $1,656 billion by 2017 garnering a fair share of the alternative payments market equaling that of card payments – a whopping 41 percent by 2017.
The study says that owing to increased smartphone adoption and maturing technology, mobile payments, which stood at just $18 billion in 2012, will increase to $117 billion by 2017.
“We’re seeing a transformation in transaction trends. Credit and debit cards have long dominated as the payment method of choice for online transactions. Now, alternative payment methods are forecast to grow significantly faster than total e-commerce and will represent more shopper spend than cards by 2017”, said, Shane Happach, Chief Commercial Officer, WorldPay.
Payments market varies significantly in Europe claims the study. While countries like UK, Ireland, Denmark and Turkey still stick to card based payments, countries including Poland, Finland, Germany and the Netherlands have shown a trend of increased alternative payment methods.
According to Kevin Dallas, Chief Product & Marketing Officer, E-commerce, WorldPay, complexity in the payments landscape will all but increase as emerging economies including Brazil and India have shown increased affinity towards alternative payments.
Download the full report here.
