Sample Report: Europe Online Payment Methods: Full Year 2014

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March 2015



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PREFACE

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Methodology (1 of 2)

This Online Payment Methods report by yStats.com is produced in a holistic approach to contain relevant information about methods,

trends, transaction volumes, users and important player news in the relevant online payment market.

This report includes the results of secondary market research: By using various sources we ensure maximum objectivity for all obtained data.

As a result companies get a precise and unbiased impression of the market situation.

Cross referencing of data was conducted in order to ensure validity and reliability.

This report contains a Management Summary, summarizing the main information provided in each chapter.

Besides providing information on the specific topic, every chart contains an Action Title, which summarizes the main statement of the chart and

a Sub Title, which gives information about the country, the topic, the unit or currency, and the time period the data on the chart refers to.

Furthermore, the source of information and its release date are provided on every chart. It is possible that the information included in one chart

is derived from several sources. Then, all sources are mentioned on the chart.

This report also includes rankings. Within these rankings, it is possible that the total amount adds up to more than 100%. If this is the case,

multiple answers were possible, and this is then mentioned in the note of the chart.

If available, additional information about the data collection, for example the time of survey and number of people asked, is provided in the form

of a note. In some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.

When providing information about amounts of money, local currencies were mostly used. When referencing them in the Action Title, the EUR

values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time

period. Should the currency figure be in the future, the average exchange rate of the past 12 months is used.

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Methodology (2 of 2)

This report covers the online payment market. It takes into account a wide definition of online payment, including mobile payment.

The report starts with a global chapter, whether worldwide trends in development of online payment methods were covered.

Regional data was presented first, while the countries were included in the order of descending B2C E-Commerce sales.

All major countries in the region were covered, while data availability varied across the markets.

Depending on data availability, the following types of market information were included: the most used and most offered payment methods in

B2C E-Commerce, online and mobile payment trends, number and volume of online and mobile payment transactions, information about online

and mobile payment users. For the leading countries, also online and mobile payment trends and news about major players, such as payment

providers, banks, and retailers were included.

The report includes data mostly published during the previous year (2014). The exact date of publication of the source is stated on each chart.

The time period which the data refers to differs by source.

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The following expressions and definitions are used in this Online Payment Methods Report:

Online Payment:

Transfer of money made over the Internet following a consumer’s payment command, includes payments for product and service purchase in E-

Commerce and M-Commerce.

Mobile Payment:

Wide definition of mobile payments includes payments made in M-Commerce and payments made in-store via QR code scanning and NFC

technology.

Alternative Payments:

Generally refers to payment methods other than credit card or bank card payments. Widely defined, alternative online payment methods include

bank transfers and direct debit, digital wallets, pre-paid cards and private label cards, invoice, and digital currency. May also include cash on

delivery and card schemes by local companies other than global card brands.

Digital Wallet:

Also known as E-Wallet. A prepaid digital account, allowing users to store money and use it in online or mobile transactions.

NFC:

Near Field Communication, a set of standards for smartphones and similar devices to create radio communication by bringing them close together

or having them touch each other. In that way, contactless data exchange and transactions can take place.

E-Money:

Short for electronic money. Money which is exchanged electronically using digitally stored values.

E-Commerce:

This term means the sale of products (and services) through electronic transactions.

M-Commerce:

M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through transactions via mobile devices.

Definitions

Note: specific definitions used by the sources were put on corresponding charts, where available



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Table of Contents (1 of 8)

1. Management Summary

2. Global Developments

• Online and Mobile Payment Trends and News about Players, H2 2014

• Online Payment Overview and Trends, H1 2014

• Value of Digital Payments, in USD trillion, 2014e & 2019f

• Value of B2C E-Commerce Payment Transactions, by Method, in USD billion, and in % CAGR, 2012 & 2017f

• Number of B2C E-Commerce Payment Transactions, in billions, 2011 - 2015f

• Number of Mobile Payment Transactions, by Bank and Non-Bank, in billions, 2011 - 2015f

• Value of Mobile Payments, in USD billion, 2013 & 2014f

• Mobile Wallet Market Value, in USD billion, 2012 & 2018f

• Number of NFC Payment Users, in millions, 2014e & 2019f

• Share of Consumers who Used Mobile Payment In-Store or in Online Shopping, by Selected Countries, 2014e

• Breakdown of Mobile Wallet Usage and Attitude Among Users in Advanced Markets, in % of Respondents, 3 Months to March 2014

• Major Concerns about Online Shopping, in % of Online Shoppers, May 2014

• Reasons for Not Shopping Online, in % of Consumers who Do Not Shop Online, 2012 & 2013

• Share of Consumers who Do Not Shop Online Because of Lack of Trust to Online Payment Methods, by Selected Countries, in %, 2013

• Payment-Related Reasons for Not Shopping Online More Often, Compared to Other Reasons, in % of Online Shoppers Who Buy Online Less

than Once a Month, by Selected Countries, September 2013

• Payment Methods Perceived to be Safest, incl. Online, in % of Consumers, by Age Group, June 2014

3. Europe

3.1 Regional

• Breakdown of Payment Methods Most Preferred in B2C E-Commerce, in % of Online Shoppers, by Selected Countries and Sub-Regions,

2013

• Payment-Related Reasons for Not Shopping Online More Often, Compared to Other Reasons, in % of Online Shoppers Who Buy Less than

Once a Month, by Selected Countries, September 2013

• Share of Internet Users who are Concerned about Security of Online Payments in Online Banking and Online Shopping in the EU, by

Country, June 2013 & March 2012



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3. Europe (cont.)

3.2. Western Europe

3.2.1. UK



• Payment Methods Used in B2C E-Commerce, in % of Online Shoppers, 2014

• Payment Methods Used in B2C E-Commerce, in % of Online Shoppers, by Gender, 2014

• Popular Methods to Pay Online, in % of Consumers, August 2014

• Major Reasons for Abandoning Online Shopping Cart, in % of Consumers who Abandoned Online Shopping Carts, August 2014

• Online Card Payment Fraud, in GBP million, by Fraud Against UK-Based Online Retailers and Overseas-Based Online Retailers, 2012 &

2013e

• Mobile Payments Conducted, by Type, in % of Internet Users, by Age Group, 12 Month to July 2014

• Interest in Using Mobile Payments, in % of Internet Users Who Do Not Use Mobile Payments, by Age Group, July 2014

• Number of Cards with Contactless Payment Functionality, in millions, December 2012, December 2013 & June 2014

• Number of Bank-Owned Terminals with Contactless Payment Functionality, in thousands, December 2012, December 2013 & June 2014

• Number and Value of Contactless Card Transactions, in GBP million and million transactions, by Debit and Credit/Charge Card, and in %

Growth, June 2014

3.2.2. Germany



• Breakdown of B2C E-Commerce Sales by Payment Methods, 2012 & 2013

• Breakdown of Interactive Retail Sales* by Payment Methods, in EUR million and in %, 2012 & 2013

• Breakdown of Payment Methods Used to Buy Digital Goods, in %, by Age Groups and Total, 2013

• Top 3 Most Used Payment Methods in B2C E-Commerce, in % of Online Shoppers, Compared to Austria and Switzerland, 2013

• Preferred Payment Methods in B2C E-Commerce, in % of Online Shoppers, 2013

• Offered Payment Methods in B2C E-Commerce, in % of Online Shops, 2013

• Most Secure Payment Methods in B2C E-Commerce, in % of Online Shoppers, 2013

• Breakdown of the Importance of Factors in Online Shopping, Incl. Payment, in % of Online Shoppers, January 2014



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3. Europe (cont.)

3.2. Western Europe (cont.)

3.2.2. Germany

• Reasons for Abandoning Online Shopping Cart, in % of Internet Users, June 2014

• Usage of Additional Charges for Selected Payment Methods, in % of Online Merchants, 2012 - 2014

• Perception of Payment Method Costs, in % of Online Merchants Offering the Method, June 2014

• Breakdown of Payment Method Processing, by Own Processing and Processing Through Payment Service Provider, in % of Online

Merchants Offering the Method, June 2014

• Usage of Payment Risk Check, by Payment Method and by External and Internal Risk Check, in % of Online Merchants, June 2014

• Average Order Value, by Payment Method, in EUR, June 2014

• Used Payment Methods in M-Commerce, in % of Mobile Shoppers, 2013

• Most Important Factors in M-Commerce, incl. Mobile Payment Security, in % of Online Shoppers, 2013

• Number of Mobile Payment Users, in thousands, 2014e & 2020f

• Breakdown of Mobile Payment App Usage, by Current Usage and Potential Usage, in % of Internet Users, June 2014

• Breakdown of NFC Payment Usage, by Current Usage and Potential Usage, in % of Internet Users, June 2014

3.2.3. France


• Payment Methods Most Used in B2C E-Commerce, in % of Online Shoppers, Q1 2014

• Value of Card Fraud in Domestic E-Commerce Transactions, in EUR million, and Fraud Rate, in % of Transactions, 2009 – 2013

• Share of 3D Secure Transactions on Total Online Card Payments, in %, April 2011 - April 2014

• Number of Retail Stores with Contactless Payment Terminals, in thousands, and in % Penetration Rate, March 2014 - September 2014

• Number of Cards with Contactless Payment Functionality, in millions, and in % Penetration Rate, March 2014 - September 2014

• Share of Consumers Who Made Payments with Mobile Phone in Store, in %, September 2014

• Interest in Making In-Store Payments with Mobile Phone in the Future, in % of Smartphone Owners Who Have Not Made Payments with

Mobile Phone in Store, in %, September 2014

• Places for Perspective Usage of Mobile Payments, in % Smartphone Users who Have not Made Mobile Payments in Store, September 2014



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3. Europe (cont.)


3.2.4. Spain

• Breakdown of B2C E-Commerce Purchases, by Selected Payment Methods, in %, 2014e

• Most Used Payment Methods in B2C E-Commerce, in % of Online Shoppers, 2012 & 2013

• Payment Systems in B2C E-Commerce, in % of Online Merchants, February 2014

• Reason for Abandoning Mobile Shopping Cart, in % of Mobile Shoppers, July 2014

• Breakdown of Intention to Use Mobile Payments, in % of Consumers, July 2014

3.2.5. Italy

• Breakdown of B2C E-Commerce Sales, by Payment Methods, in %, 2012 - 2014f

• Value of B2C E-Commerce Payments, by Credit Card and Others, in EUR million, August 2013 - August 2014

• Number of Cards and POS with Contactless Payment Functionality, in thousands, 2013

• Breakdown of Attitude to Mobile Proximity Payment, in % of Mobile Internet Users, 2014e

• Breakdown of Attitude to Mobile Wallet, in % of Mobile Internet Users, 2014e

• Breakdown of Most Trusted Providers of Mobile Wallet, in % of Mobile Internet Users who Are Interested in Using Mobile Wallets, 2014e

3.2.6. Netherlands

• Breakdown of B2C E-Commerce Payments, by Payment Method, in %, H1 2014

• Breakdown of B2C E-Commerce Payments by Method, by Shopping Channel, in %, H1 2014

• Breakdown of B2C E-Commerce Transactions by Payment Methods, in %, 2012/2013

3.2.7. Belgium

• Payment Methods Offered in B2C E-Commerce, in % of Online Merchants, 2012 & 2013

• Payment Methods Offered in M-Commerce via Smartphones, in % of M-Commerce Merchants, 2013

3.2.8. Sweden

• Breakdown of Preferred Payment Methods in B2C E-Commerce, in % of Online Shoppers, January 2014

• Breakdown of the Preferred Payment Methods in B2C E-Commerce and M-Commerce, in %, Q3 2013

• Breakdown of the Preferred Payment Methods in B2C E-Commerce, in % of Online Shoppers, Q3 2012 & Q4 2013



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3. Europe (cont.)


3.2.9. Denmark



• Breakdown of the Last B2C E-Commerce Purchase by Payment Methods, in % of Online Shoppers, 2013

• Breakdown of Credit/Debit Card Payment for the Last B2C E-Commerce Purchase, by Card Brands, in %, 2013

3.2.10. Finland



3.2.11. Norway



3.2.12. Switzerland




3.2.13. Austria

• Breakdown of Preferred Payment Methods in B2C E-Commerce, in % of Online Shoppers, 2006 & 2013






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3. Europe (cont.)

3.3. Eastern Europe

3.3.1. Russia




• Payment Methods Used in B2C E-Commerce, in % of Online Shoppers, by Gender and Location, 2013

• Payment Methods Used in B2C E-Commerce, in % of Online Shoppers, 2010 – 2013

• Breakdown of Usage of Online Payment, by Frequency, and Breakdown of Intention to Use Online Payment in the Future, in % of Internet

Users, February 2014

• Purposes of Using Online Payment, in % of Online Payment Users, 12 Months to February 2014

• Knowledge and Usage of Non-Cash Payment Methods, incl. Online, in % of Internet Users in Large Cities, Ranked by Usage, April 2014

• Knowledge and Usage of E-Wallet Services, incl. Online, in % of Internet Users in Large Cities, Ranked by Usage, April 2014

• Share of Attempted Fraud Transactions in E-Commerce, by Sector, 2013

• The Share of Actual Fraudulent Transactions on E-Commerce Payments with Cards, 2013

• Breakdown of Online Fraud Losses, by Fraud Type, in % and in USD million, 2011 & 2012

• Devices Used to Make Online Payment, in % of Online Payment Users, 12 Months to February 2014

• Penetration of Users Paying Online via Mobile Devices, by Age Group and Gender, in % of Online Payment Users in the Relevant Group, 12

Months to February 2014

• Penetration of Users Paying Online via Mobile Devices, by Household Income and City Size, in % of Online Payment Users in the Relevant

Group, 12 Months to February 2014

• Purposes of Making Online Payments via Mobile Devices, by Rank, 12 Months to February 2014

3.3.2. Turkey

• Breakdown of Most Used Payment Methods in B2C E-Commerce, in % of Online Shoppers, 2012

• Number and Value of Domestic E-Commerce Transactions with Cards, in millions and in TRY billion, Q1 2012 - Q3 2014

• Number and Value of Cross-Border E-Commerce Transactions with Cards, in millions and in TRY million, Q1 2012 - Q3 2014

• Major Payment Methods Used in B2C E-Commerce, by Rank, 2014e



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3. Europe (cont.)

3.3. Eastern Europe (cont.)

3.3.3. Poland

• Breakdown of Payment Methods Most Used in B2C E-Commerce, in % of Online Shoppers, March 2014

3.3.4. Greece

• Payment Methods Most Offered in B2C E-Commerce, in % of Online Shops, H1 2014

3.3.5. Czech Republic

• Payment Methods Used in B2C E-Commerce, in % of Online Shoppers, by Gender and Age Group, Q2 2013


• Breakdown of Online Bank Card Payments, by E-Commerce Categories, in %, by Transaction Value and Volume, 2013

3.3.6. Hungary

• Payment Methods Preferred in B2C E-Commerce, in % of Online Shoppers, May 2014

• Value and Number of Online Payment Transactions with Cards, in HUF million and in million Transactions, by Cards Issued in the Country

and Outside the Country, H1 2010 - H1 2014

• Value and Number of Contactless Payment Transactions with Cards, in HUF million and in million Transactions, by Cards Issued in the

Country and Outside the Country, H1 2012 - H1 2014

3.3.7. Romania

• Breakdown of Payment Methods Used in B2C E-Commerce, in %, 2013

• Number of Online Credit Card Payments for Products and Services, in millions, 2012 & 2013

3.3.8. Belarus

• Payment Methods Most Used in B2C E-Commerce, in % of Online Shoppers, March 2014

3.3.9. Slovenia

• Payment Methods Used in B2C E-Commerce, in % of Online Shoppers, 12 Months to March 2014



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3. Europe (cont.)

3.3. Eastern Europe (cont.)

3.3.10. Estonia

• Value and Number of Domestic B2C E-Commerce Card Transactions, by Debit and Credit Cards and Total, in EUR million and in thousands,

Q1 2013 - Q3 2014

• Value and Number of Cross-Border B2C E-Commerce Card Transactions, by Debit and Credit Cards and Total, in EUR million and in

thousands, Q1 2013 - Q3 2014



1. Management Summary 14 – 17

2. Global Developments 18 – 34

3. Europe

Regional

35 – 151

35 – 39

3.2. Western Europe

UK

Germany

France

Spain

Italy

Netherlands

Belgium

Sweden

Denmark

Finland

Norway

Switzerland

Austria

40 – 116

40 – 52

53 – 73

74 – 82

83 – 87

88 – 93

94 – 96

97 – 98

99 – 101

102 – 105

106 – 107

108 – 109

110 – 112

113 – 116

3.3. Eastern Europe

Russia

Turkey

Poland

Greece

Czech Republic

Hungary

Romania

Belarus

Slovenia

Estonia

117 – 151

117 – 133

134 – 137

138 – 138

139 – 139

140 – 142

143 – 145

146 – 147

148 – 148

149 – 149

150 – 151

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Table of Contents



218 221

172160

199

140153

233

131

11% 12% 12% 12% 13%15% 17% 17% 18%

0

100

200

300

400

Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14

0%

25%

50%

75%

100%

Retail Stores with Contactless Payment Terminals

in % Penetration Rate

15

France: Number of Retail Stores with Contactless Payment Terminals, in thousands, and in % Penetration

Rate, March 2014 - September 2014

By September 2014, 18% of retail stores in France had contactless

payment terminals installed, up from 11% in January 2014.

Source: l’Observatoire du NFC, Carte Bancaire CB, January 2014, February 2014, April 2014, May 2014, June 2014, July 2014, August 204, September 2014

in thousands

in %

Penetr

ation R

ate

UK Germany Netherlands Spain France Sweden Italy Denmark Finland Norway Switzerland Austria Belgium



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“Cash on Delivery” was the payment method offered by 91% of online

stores in Greece in H1 2014.

Greece: Payment Methods Most Offered in B2C E-Commerce, in % of Online Shops, H1 2014

81%

91%

72%

63%

0% 20% 40% 60% 80% 100%

PayPal

Debit Card

Credit Card

Cash on Delivery

Survey: based on a survey of 2,300 online stores

Source: Eltrun, June 2014

in % of Online Shops

Russia Turkey Hungary Greece Poland Romania Czech Rep. Belarus Slovenia Estonia



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Sample Report: Europe Online Payment Methods: Full Year 2014