Skip to main content

Alternative Online Payment Technology Gains Momentum

Across the globe, eRetail is now the mainstream -- with well over half of all adults making purchases for products and services online, increasingly from their mobile devices.

Meanwhile, traditional bricks and mortar retailers have had to incorporate digital channels into their offerings. Unfortunately for the retailer, there are numerous steps during the online shopping experience where the shopper may abandon their journey to payment.

Online Payments Market Development

The value of spending on remote payments for digital and physical goods will surpass $3.3 trillion this year -- that's up 10 percent on the 2017 total of $3 trillion, according to the latest worldwide market study by Juniper Research.

The new research findings uncovered that alternative payment mechanisms would comprise an ever increasing proportion of online spending.

PayPal already accounts for 20 percent of mobile and online physical goods transactions made outside China, while the success of Alipay and Weixin Pay within China means that these two players combined now account for 45 percent of global payment volumes.


It also claimed that there was a significant opportunity for more nascent options, such as the various OEM-Pay solutions and carrier billing, recently adopted by Amazon in Japan for physical goods purchases.

The market study findings also highlighted the major pain points for merchants and their customers. It argued that European merchants needed to be aware of the implications of PSD2 on card-on-file, meaning they would need to be ‘white-listed’ by consumers for payment details to be stored.

Indeed, it claimed Secure Customer Authentication (SCA) obligations could potentially adversely impact on conversion rates by increasing friction at checkout.

Meanwhile, the research noted that retailers were struggling to resolve issues around customer identification within the broader commerce framework.

Outlook for Online Payment Applications

"Payment processors and other key stakeholders need to work closely with merchants to ensure they can recognize individual consumers, regardless of device and whether they are purchasing online or offline, to deliver the optimal experience across the retail lifecycle," said Dr Windsor Holden, head of forecasting & consultancy at Juniper Research.

Furthermore, the research stressed that not only should merchants localize supported payment mechanisms, but also the entire payment flow. Therefore Juniper analysts recommended they work with payment processors to test optimal flows for target markets.

Popular posts from this blog

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

Secure Microcontroller Market to Reach $2.2 Billion

In spite of the volatile global semiconductor industry being plagued by ongoing macroeconomic and political disruption issues, the secure microcontroller (MCU) market should continue to prosper. While the forecasted total available market has contracted -- especially in the smart home, retail, advertising, and supply chain spaces -- secure MCU shipments will likely be temporarily affected.  According to the latest worldwide market study by ABI Research, the secure microcontrollers market will grow to reach $2.2 billion by 2026. Secure Microcontroller Market Development "In part, this is due to the niche nature of security demand which commands a higher value proposition," says Michela Menting, research director at ABI Research . In the short term, potential supply chain issues due to trade embargoes and global COVID-19 pandemic quarantines at manufacturing sites will affect availability. Yet, demand for security, especially in general purpose microcontrollers, will ensure the