Online Consumer Payments: Sizing the Opportunity

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

$3450

This report examines the online consumer payments market in 28 global markets, considering the overall market size and its development, as well as the importance of mobile devices as opposed to desktop and laptop computers. The report also breaks down the online market by the type of goods consumers buy and the tools they choose to pay with, considering how consumer buying behavior has changed and the drivers of this change.

Online consumer payments remain the biggest growth market in payments, and will continue growing strongly as more consumers gain access to the internet and to tools that can be used online. Developing countries – particularly China – are expected to be at the forefront of this growth, although even the most developed online commerce markets will grow strongly over the next five years.

– Sizes the online consumer payments market in 28 countries.
– Analyzes the breakdown of online commerce by channel in all 28 markets.
– Identifies the major barriers to consumer engagement with the online channel and how to overcome these
– Considers consumer spending patterns on goods and services online and how these have changed in recent years.
– Explores the online payment market by payment tool and assesses the position of traditional payment tools such as cards against alternative tools in key geographic markets.
– Provides key strategic recommendations for merchants and payment providers based on the prevailing trends in the online payments market.

Scope

– China overtook the US as the world’s largest online commerce market in 2015, with Chinese consumers spending a total of $699bn online that year.

– 20% of the total value of online commerce transactions across all markets will be accounted for by m-commerce by 2020, with the market recording a compound annual growth rate of 17% from 2015 to 2020.

– Consumer spending patterns online have shifted over the past three years to a wider range of merchant categories. The market is no longer dominated by high-ticket goods categories to the same extent it has historically been.

Reasons to Buy

– Understand the key facts and figures in the global online consumer payments market.

– Learn how much of online consumer spending is done through mobile devices and how the composition of the market is likely to change in the future.

– Find out what is keeping consumers from using the online channel and how to boost consumer engagement.

– Discover key consumer spending dynamics online in terms of goods purchased and payment tools used.

PayPal
iDEAL
Alipay
Carrefour
Harrods
Starbucks
Apple
Just Eat
hungryhouse
Visa
Mastercard
eBay
Tenpay
Alibaba
SEQR
Google
Amazon
Samsung

Table of Contents

Table of Contents

1. EXECUTIVE SUMMARY 2

1.1. Online payments is the biggest growth market in payments 2

1.2. Key findings 2

1.3. Critical success factors 2

2. THE GLOBAL OPPORTUNITY 6

2.1. Introduction 6

2.2. Chinese consumers spent $699bn online in 2015 6

2.2.1. Households in the UK spend the largest amount of any country online on average 7

2.2.2. M-commerce accounts for 50% of online commerce by value in Malaysia 9

2.2.3. Different devices enable different shopping behaviors 10

2.2.4. Merchants and payment providers need strategies for both app and browser-based commerce 10

2.3. Online commerce is still not universal, even among internet users 11

2.3.1. Personal preference is the most common reason consumers do not shop online, although security is also a significant concern 12

2.3.2. Physical outlets are a necessary component of successful online strategies 13

2.3.3. Fraud and fear of fraud are both serious issues for the industry 14

2.3.4. Concerns about online card fraud are widespread, irrespective of fraud risk 14

2.4. Consumer spending patterns online have changed significantly over the last five years 16

2.4.1. Food and drink accounted for 15 billion online sales in 2015 17

2.4.2. Online buying trends reflect consumers’ general channel preferences 18

2.5. Payment cards are losing their dominance over the online market 18

2.5.1. Payment cards are held back by static passwords and inconvenient online forms 19

2.6. PayPal is the highest-profile digital wallet in Western markets 20

2.6.1. PayPal’s One Touch demonstrates the power of convenient online experiences 21

2.7. Domestic payment tools have established themselves in several markets 22

2.7.1. Alipay is the single largest domestic payment tool operating globally 22

2.7.2. iDEAL demonstrates the potential of OBePs 23

2.7.3. OBeP services offer a lot to merchants, but must persuade consumers of their benefits 24

3. STRATEGIC RECOMMENDATIONS 26

3.1. Different devices require different approaches to online commerce 26

3.2. Bricks and mortar will remain relevant into the long term 27

3.3. Payment tools must balance security and convenience 27

4. APPENDIX 29

4.1. Abbreviations and acronyms 29

4.2. Methodology 29

4.2.1. GlobalData’s 2016 Consumer Payments Insight Survey 29

4.2.2. GlobalData’s Online Consumer Payments Analytics 29

4.3. Bibliography 30

4.4. Further reading 31

Figures

List of Figures

Figure 1: China overtook the US as the largest online commerce market in the world in 2015 7

Figure 2: The average UK household spent a total of $5,900 online in 2015 8

Figure 3: M-commerce is most developed in Southeast Asian markets 9

Figure 4: More than half of internet users in South Africa and the UAE do not shop online regularly 12

Figure 5: 40% of consumers who do not shop online regularly prefer to see what they are purchasing in-store 13

Figure 6: Online card fraud is concerning for the majority of consumers – even in low-risk markets 15

Figure 7: Flight and hotel bookings accounted for 14% of online spending globally in 2015 16

Figure 8: Food and drink accounted for 14% of the total number of online transactions in 2015 17

Figure 9: Payment cards are particularly dominant for online spending in Europe 19

Figure 10: PayPal has a strong market presence in Western Europe 21

Figure 11: In China, digital wallet Alipay holds a 33% share of online commerce by value 23

Figure 12: Over half of the total value of Dutch online commerce is accounted for by iDEAL 24

Frequently asked questions

Online Consumer Payments: Sizing the Opportunity standard reports
Currency USD
$3,450

Can be used by individual purchaser only

$10,350

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

See what our customers are saying

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Financial Services
New
Worldline - Competitor Profile
$350 | March 2024
Financial Services
New
M-PESA - Competitor Profile
$350 | April 2024
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Online Consumer Payments: Sizing the Opportunity in real time.

  • Access a live Online Consumer Payments: Sizing the Opportunity dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.