The Asia-Pacific region is expected to overtake North America to be the largest online retail market within a few years, so the growth of online payments there is of particular interest. In the region’s largest market, China, online and mobile payments are dominated by local third party payment providers. The number of online payment users in China neared 300 million, while mobile payment users topped 200 million. Japan has seen new mobile payment pathways launched this year, though the payment methods most used by online shoppers in Japan for the present are credit card and convenience store payments. In South Korea, government regulations and entrepreneurial innovations are furthering the growth of online payments. In Australia, online shopping remains the leading purpose for using credit cards.
In North America, credit card remains the leading payment method in the USA, preferred by 48% of online shoppers in 2014. Its share remains high in usage despite the number of cases with credit card data breach reported by multichannel retailers in 2014. The growth of proximity mobile payment transactions in the USA is forecasted to accelerate in the next couple of years and then slow down. Security remains a major concern in both online and mobile payments in the USA. In Canada also over 50% of consumers were worried about personal information disclosure in mobile payments.
Europe, the world’s third largest region by B2C E-Commerce sales, shows wide diversity in terms of payment methods used in online shopping. While non-cash payment methods, especially credit cards, dominate in the Western sub-region, cash on delivery and various alternative methods are most used in Eastern European countries. Both sub-regions show potential for mobile payments growth.Europe’s largest online market, the UK was dominated by credit and debit cards in terms of payment methods in 2014. Similar situation is in France, with both countries seeing growth in mobile payments acceptance. In Germany, invoice remained the leading payment method in B2C E-Commerce sales, while PayPal increased its share. In Russia cash on delivery is ahead of credit card usage in online shopping and alternative payments such as PayPal and online banking show recent dynamism. In some other Eastern European markets, including Hungary, Romania and Belarus, cash on delivery is the most used method. However, there are also exemptions to this trend: in Turkey card payment dominates and grew rapidly in the first three quarters of 2014.
In the Latin American markets, new regulations were adopted in 2013 and 2014 in Brazil, reflecting on the growth of online and mobile payments. Credit cards were used most in online purchases in Brazil, followed by local method Boleto Bancario. Both cash and credit cards were used by online shoppers in Mexico frequently.
In the Middle East, the dominant payment method is “cash on delivery”, with only a small double-digit share of E-Commerce transactions settled with credit cards. However, the development of online payment gateways is eroding the dominance of cash. Also regulators have started to realize the necessity of online payments and take initiative to boost them, such as in the UAE. In Africa, low credit card and banking penetration is compensated by the spread of mobile payment solutions and alternative methods. Mobile payments boom in countries like Kenya and Morocco, while in South Africa credit card, transfer and cash on delivery are the leading payment methods.
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