24 August 2017
Visit http://response.ncr.com

Jump in adoption of alternative payment methods

16 January 2008  |  7545 views  |  0 buy and sell button

Around 30% of US online retailers now offer customers the option to use alternative payment methods (APM) - such as Google Checkout, PayPal and Bill me Later - which is a 25% increase since February 2007, according to a poll conducted by interactive marketing firm Brulant.

The survey of 100 US e-retailers, conducted in November, shows that instant credit outfit Bill Me Later saw the highest adoption, with 21% of firms polled offering the service, a rise from 17% last February.

PayPal came closely behind with 19% of firms offering the service - up from six per cent at the beginning of last year. Meanwhile, 10% of e-retailers now offer the Google Checkout service, double the adoption it saw in February 2007.

Around five per cent of the surveyed companies now offer all three of these alternative payment options, compared to none in February last year. Adam Cohen, principal, Brulant, says this demonstrates that retailers want to keep customers happy by providing as many options as possible.

"Online consumers are looking for more payment options, and retailers are finding that offering more options is leading to increased conversions," says Cohen.

He says that with PayPal in particular, shoppers who are concerned about credit card fraud have an option "that has established a high level of trust".

A US study released by Javelin Research & Strategy in September last year predicted use of APMs will increase to gain 30% of all online transaction volume by 2012, up from 14% in 2007.

Javelin said consumers view alternative payment methods as a trusted and viable way to pay for online purchases.

The research house predicted that e-mail payment accounts - primarily PayPal - would see the biggest growth, jumping from five per cent to 11% by 2012 whilst instant credit services, such as Bill Me Later, would only see a small rise.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Amazon invests in Bill Me Later

Amazon invests in Bill Me Later

13 December 2007  |  7023 views  |  0 comments
PayPal set to roll out virtual card payments system

PayPal set to roll out virtual card payments system

19 November 2007  |  7643 views  |  0 comments
Shift to alternative payment options as online transactions soar

Shift to alternative payment options as online transactions soar

26 September 2007  |  7190 views  |  0 comments
Google Checkout makes inroads online

Google Checkout makes inroads online

01 February 2007  |  7948 views  |  0 comments
Plastic cards under threat as UK Internet sales soar

Plastic cards under threat as UK Internet sales soar

20 July 2006  |  6230 views  |  0 comments
EBay bans Google Checkout

EBay bans Google Checkout

07 July 2006  |  8671 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit www.vasco.comvisit www.abe-eba.eu

Top topics

Most viewed Most shared
Rabobank constructs physical model to understand IT architectureRabobank constructs physical model to unde...
21373 views comments | 44 tweets | 88 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
12102 views comments | 22 tweets | 35 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
11489 views comments | 21 tweets | 35 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
11273 views comments | 10 tweets | 8 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
10912 views 0 | 7 tweets | 1 linkedin