US eCommerce was built on the back of secure credit card data handling and a population of which the majority own a credit cards. In the US, and much of the rest of the world, credit cards are still the primary method of payment, but the proportion of people choosing to use alternative payment methods is set to reach half of the global eCommerce market, which is surprising when you consider that Amazon, the biggest fish in the eCommerce pond, doesn’t accept alternative payment methods on its main eCommerce store, in spite of offering its own spin on alternative payments.
In fact, the number of companies offering alternative payment methods is rapidly growing, with a particular focus on mobile payments. Amazon, Google, and others offer digital wallets, and Apple and Facebook are expected to jump on board in the near future. It’s likely that the battle for the wallets of eCommerce shoppers will be fought and won on mobile platforms, an area in which both Google and Apple are well placed to dominate.
But across the alternative payment market as a whole, the more established players continue to rule the roost, with PayPal and AliPay being the most prominent. AliPay, which is China’s leading online payment solution, processed over €100 Billion worth of transactions, making it world’s third largest mobile payment provider.