LONDON, November 26, 2015 /PRNewswire/ --
The "year of
alternate payments" will see
consumers dictating which payment technologies
gain buy-in from merchants in an
overcrowded market
Worldpay predicts that the digital payments market will leave
its growing pains behind in 2016. The payments leader said next
year will herald "the third age of digital payments" now that
eWallets are growing in popularity, NFC offerings from technology
vendors like Apple, Samsung, and Google are fighting for mass
appeal, and both banks and brands are rolling out their own mobile
payment apps to compete for consumer loyalty.
2016 will also be a breakthrough year for Alternative Payment
Methods (APMs), Worldpay predicts. In its latest Global Payment
Report, Worldpay found that APMs inched past card payments for the
first time ever with 51% of market share. Worldpay predicts this
gap will widen in 2016 and beyond as more consumers opt for the
convenience of "e" payment options over traditional plastic.
The report also predicts that eWallets will overtake credit
cards in the global eCommerce market by 2019, accounting for 27% of
global turnover compared with credit cards' 24%. Additional APMs
will account for a significant portion of the remaining market
alongside traditional debit card, bank transfer and cash
payments.
Worldpay also expects eWallets to come of age over the next five
years, and consumers to play the largest role in dictating which
payment technologies come out on top in an increasingly crowded and
confusing environment.
Tang Kok San,
Vice President of Business Development in China at Worldpay said: "The
first age of digital payments kicked off with the eCommerce boom in
the early 2000s when companies like PayPal and AliPay introduced
eWallets to the mainstream. The second phase coincided with the
rise of the smartphone at the beginning of the decade, and we've
since seen a proliferation of new mobile apps that quickly raised
the bar for convenience in payments."
Kok San added: "However,
with so many options being rolled out so quickly, a sense of app
fatigue has begun to set in leaving both consumers and merchants
unsure of which approach is best and questioning the convenience of
using multiple eWallets. I expect the next few years will see a
consolidation of the market as the public hones in on their
preferred payment methods and conscientious merchants feel more
confident buying into technologies that their customers have
already embraced."
About the data:
The Global Payments Report was compiled using a combination of
Worldpay's data and insights, external findings from Euromonitor,
Datamonitor and ystats.com, and secondary data from over 100
independent sources. The forward-looking statements and figures
contained in the report are indicative predictions based on
Worldpay's own data and experience and should be treated as
such.
For the full report visit:
Global Payments Report
About Worldpay:
Worldpay is a leader in global payments, processing millions of
transactions every day. We provide an end-to-end service including
card acquiring, treasury, gateway, alternative payments and risk
management, all of which can be provided with a single integration
to Worldpay. We make global payments simple for many of the world's
leading organisations.
http://www.worldpay.com/global
Twitter: @Worldpay
Facebook: http://www.facebook.com/worldpay