For Finextra's free daily newsletter, breaking news and flashes and weekly job board.
Interesting views - but I'm not sure I completely agree with your thesis. On-line shopping is rapidly increasing, but this is more fuelled by improved on-line shopping experiences and higher bandwidth. I disagree with your views on the banks investing in
fraud prevention - I think that much of the growth is despite fraud levels and PayPal is also picking up a significant share of online shopping revenues.
PayPal is also focussed on providing customers with the ability to shop in-store and via their mobiles. Unless the banks get their acts together they will be left behind and disintermediated by their more commercial competitors.
Nice post Andy! It's interesting that the UK is so "e-friendly" and contrary to the other comment (from PayPal?) I agree with your analysis that much of the credit should go to the UK banking and card payments community. I'd add the high penetration of
3D Secure (SecureCode; VbV) and Remote chip Authentication (PINSentry etc) to your factors.
On a similar note, yesterday I came across a statistic that, according to a First Annapolis survey, a huge 40% of UK MasterCard/Visa payments were card-not-present transactions. Can this be true - anyone have any similar global statistics?
Meanwhile, looking at the original Boston Consulting piece you referenced, it seems that 70% of us brits would rather give up alcohol for a year rather than their broadband, and 25% sex! Irational exuberance, surely :-).