Sample Report: Global Alternative Online Payment Methods: Full Year 2016

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GENERAL METHODOLOGY OF MARKET REPORTS

Secondary Market Research

The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are

solely based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and

company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for

all obtained data. As a result, companies gain a precise and unbiased impression of the market situation.

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

The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several

sources. If this is the case, all sources are mentioned on the chart.

The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart.

Definitions

The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact

definition used by the source (if available) is included at the bottom of the chart.

Chart Types

Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main

idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time

period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple

answers were possible, which is noted at the bottom of the chart.

Report Structure

Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents,

management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When

available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional

reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures.

Notes and Currency Values

If available, additional information about the data collection, for example the time of survey and number of people surveyed, 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 are most often used. When referencing currency values 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 OF THE CURRENT REPORT

Report Coverage

This report covers the global online payment market with a focus on alternative payment methods. Alternative online payment methods generally refer to

payment methods other than credit card or bank card payments. Online payment methods are defined as methods used by online shoppers to make purchases

online via any device.

Major B2C E-Commerce markets in all global regions are covered, including advanced and emerging, while data availability varied across the countries.

The report includes data mostly published within 2016. The exact date of publication of the source is stated on each chart. The time period which the data refers

to differs by source.

Report Structure

The global chapter opens the report, featuring a breakdown of global E-Commerce sales by payment methods and a ranking of methods used by global cross-

border online shoppers and mobile shoppers. A text chart with the overview of most important online and mobile payment trends is also included.

The rest of the report is divided by regions presented in the descending order of B2C E-Commerce sales. Within each region, the countries are also ranked by

online sales and grouped by emerging and advanced markets, where applicable.

Depending on data availability, the following types of market information are included: payment methods most used in online and mobile shopping, including

cards and alternative methods; attitude of online shoppers to the variety of payment methods offered; breakdown of preferences of online shoppers and of online

retail sales by payment methods. Not all the mentioned types of information are available for each of the covered countries. For selected leading markets, also

online and mobile payment trends and news about major players, such as payment providers, banks and retailers are presented on text charts.

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DEFINITIONS

ONLINE PAYMENT Transfer of money made over the Internet following a consumer’s payment command, includes payments for

product and service purchased in (B2C) E-Commerce and M-Commerce.

ALTERNATIVE PAYMENT METHOD

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.

E-WALLET /

DIGITAL PAYMENT SYSTEM A prepaid digital account, allowing users to store money and use it in online or mobile transactions. The examples

of E-Wallets or digital payment systems include Alipay and PayPal.

MOBILE WALLET

A software solution that enables consumers to store payment credentials, such as credit or debit card information,

and use the stored credentials to pay digitally for transactions made in-store, online or via mobile. Mobile wallets

are installed on mobile devices which are used to complete payments. The examples of mobile wallets include

Apple Pay, Samsung Pay and Android Pay.

INSTANT PAYMENTS Electronic payment solutions for retail which are available 24/7/365 and thus result in immediate or close-to-

immediate interbank clearing of transactions and crediting of the payees’ accounts and confirm the payment to the

payer after payment initiation.

B2C E-COMMERCE The sale of products (and services) through electronic transactions via the Internet from businesses to consumers.

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

mobile devices.

ONLINE SHOPPING Purchase of products or services by consumers via the Internet. Broadly defined, may include business to

consumer and consumer to consumer transactions.

CROSS-BORDER E-COMMERCE The sale of goods (and services) directly to consumers in other countries, with orders made online through foreign

online shops and delivered from the country where the foreign shop is based or from a central logistics facility, i.e.

across the country’s borders.

The following expressions and definitions are used in this Online Payment market report*:

Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective

charts

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TABLE OF CONTENTS (1 OF 7)

1. Management Summary

2. Global Developments

• Online and Mobile Payment Trends, H2 2016

• Breakdown of E-Commerce Sales by Payment Methods, in %, 2015 & 2020f

• Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2015

• Payment Methods Used in Online Shopping, by Regions, in % of Online Shoppers, October 2015

• Breakdown of the Number of Online Payment Options Offered, in % of Online Merchants, January 2016

• Top 3 Payment Methods Preferred in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, August 2016

• Top 3 Considerations When Choosing a Payment Method in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, August

2016

• Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, by Selected Regions, August 2016

3. Asia-Pacific

3.1. Regional

• Breakdown of E-Commerce Sales by Payment Method, in %, 2015 & 2020f

3.2. Advanced Markets

3.2.1. Japan

• Online and Mobile Payment Trends and News about Players, H1 2016


• Breakdown of Payment Methods Most Used in Online Shopping, in % of Online Shoppers, March 2016

• Breakdown of Experience with Cases Where Preferred Payment Method Was Not Offered, in % of Online Shoppers, March 2016

3.2.2. South Korea


• Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, 2014 & 2015

3.2.3. Australia

• Share of Credit Cards in Number of Domestic B2C E-Commerce Payments, in %, FY 2010/11 and FY 2015/16

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3. Asia-Pacific (Cont.)

3.3. Emerging Markets

3.3.1. China



• E-Wallet’s Share of E-Commerce Sales, in %, 2015

• Payment Methods Used in Online Shopping, in % of Online Shoppers, 2016

• Third-Party Online Payment GMV, in CNY trillion, and in % Year-on-Year Change, 2012 - 2019f

• Third-Party Online Payment Volume, in CNY trillion, by Two Comparative Estimates, Q1 2015 – Q2 2016

• Breakdown of Third-Party Online Payment GMV by Players, in %, by Two Comparative Estimates, Q1 2016

3.3.2. India


• Breakdown of E-Commerce Payment Volume by Payment Methods, in %, 2015 & 2020f


3.3.3. Indonesia

• Breakdown of E-Commerce Payments by Payment Method, by Approximate Share in %, 2015

• Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, December 2016

• Breakdown of Reasons to Choose Payment via ATM, in % of Online Shoppers Who Pay for Online Purchases via ATM, December 2016

3.3.4. Thailand

• Breakdown of E-Commerce Revenues of Retail and Wholesale Trade Companies by Payment Method, in %, 2015

• Payment Methods Used in Online Shopping, in % of Online Shoppers, by Gender and Generation, May 2015

3.3.5. Vietnam

• Payment Methods Used in Online Shopping, in % of Online Shoppers, 2014 & 2015

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4. Europe

4.1. Regional

• Payment Methods Preferred in Online Shopping, in % of Online Shoppers, by Belgium, Germany, France, Italy, the Netherlands, the Nordics,

Poland, Spain and the UK, May 2016

• Share of Online Shoppers Who Abandoned Shopping Cart Due to Lack of Favorite Payment Method, in %, by Benelux, Germany, Nordics and

the UK, June 2016

4.2. Advanced Markets

4.2.1. UK



• Top 3 Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2015

• Payment Methods Most Trusted in Online Shopping, in % of Online Shoppers, November 2016

4.2.2. Germany



• Breakdown of Online and Mail Order Sales, by Payment Methods, in % and in EUR million, 2014 & 2015

• Breakdown of B2C E-Commerce Sales by Payment Methods, by incl. Amazon and excl. Amazon, in %, 2015

• Payment Methods Used in Online Shopping, in % of Online Shoppers, July 2016

• Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2014 & 2015

• Most Important Criteria When Choosing a Payment Method to Purchase Online, in % of Online Shoppers, 2015

• Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, May 2015

4.2.3. France

• Payment Methods Most Used in B2C E-Commerce, in % of Online Shoppers, June 2015 & June 2016

• Share of Respondents Who Trust PayPal with Personal Data, by Total, Ages 18-34, and Compared to a Bank, in %, June 2016

4.2.4. Spain

• Payment Methods Used in Online Shopping, in % of Online Shoppers, 2015 & 2016

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4. Europe (Cont.)

4.2. Advanced Markets (Cont.)

4.2.4. Spain (Cont.)

• Payment Methods Used in Mobile Shopping, in % of Mobile Shoppers, 2014 & 2015

• Breakdown of Aspects Most Important for Payment Methods in Online Shopping, in % of Online Shoppers, 2015

4.2.5. Italy

• Breakdown of B2C E-Commerce Sales, by Payment Methods, in %, 2012 - 2016f

• Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2016

4.2.6. Netherlands

• Breakdown of Online Purchases by Payment Methods, in %, H1 2015 & H1 2016

4.2.7. Sweden

• Payment Methods Used and Preferred in Online and Mobile Shopping, in % of Online Shoppers, Q2 2016

• Breakdown of Preferred Payment Methods in Online Shopping, in % of Online Shoppers, Q4 2014 & Q4 2015

4.3. Emerging Markets

4.3.1. Russia

• Payment Methods Used in Online Shopping, in % of Online Shoppers, 2013 - 2015

• Share of Online Shoppers Paying by Bank Card and by Cash on Delivery, in %, October 2016


• Top 5 E-Money Services Used, in % of E-Money Users, December 2015

• Online Payment Methods Used When Paying Online via Smartphone, in % of Users, March 2016

4.3.2. Poland

• Payment Methods Used in Online Shopping, in % of Online Shoppers, 6 Months to December 2016

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4. Europe (Cont.)

4.3. Emerging Markets (Cont.)

4.3.3. Greece


4.3.4. Czech Republic

• Payment Methods Used in Online Shopping, in % of Online Shoppers, Q2 2016

• Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2015

5. North America

5.1. Regional

• Payment Methods Preferred in Online Shopping, in % of Online Shoppers, October 2015

5.2. USA



• General Payment Methods Used, in % of Internet Users, March 2016

• Top 3 Payment Methods Preferred in Online Shopping, in % of Online Shoppers, 2015 & 2016

• Payment Methods Most Trusted in Online Shopping, in % of Online Shoppers, November 2016

5.3. Canada

• Breakdown of E-Commerce Transaction Value by Payment Method, in %, 2015

6. Latin America

6.1. Regional

• Payment Methods Used in Online Shopping, in % of Online Shoppers With Bank Account, July 2016

6.2. Brazil

• Online Payment Trends and News about Players, H1 2016

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6. Latin America (Cont.)

6.2. Brazil (Cont.)


• Breakdown of B2C E-Commerce Sales by Payment Methods, in %, 2015

• Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, 2015

6.3. Mexico

• Top 10 Payment Methods Used in Online Shopping, in % of Online Shoppers, 2015 & 2016

• Online Payment Methods Used in Online Shopping, by Device Used, in % of Online Shoppers, August 2016

• Offline Payment Methods Used in Online Shopping, by Device Used, in % of Online Shoppers, August 2016


• Reasons for Not Shopping Online, incl. Payment-Related, in % of Internet Users Who Do Not Shop Online, 2015

6.4. Argentina

• Breakdown of E-Commerce Sales by Payment Methods, in %, 2015

6.5. Colombia


7. Middle East

7.1 Regional

• Breakdown of Payment Methods Preferred in Online Shopping in MENA, in % of Online Shoppers, June 2016

• Share of Online Shoppers in MENA Who Prefer to Pay with Cash on Delivery, in %, March 2016

• Breakdown of Share of Cash On Delivery, in % of E-Commerce Companies in MENA, October 2016

• Share of Online Shoppers in MENA Who Prefer to Pay with Cash on Delivery, in %, March 2016

• Share of Cash On Delivery in Total Online Shopping in the Middle East, in %, 2015

• Share of Consumers in the Middle East Who Would Opt for Alternative Payment Methods, in %, and Selected Alternative Payment Methods

They Would Opt for, incl. “Mobile Wallet”, in %, May 2016

7.2. UAE

• Breakdown of Online Shoppers by Shoppers Who Prefer to Pay Online and Who Prefer to Pay On Delivery, in %, November 2016

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7. Middle East (Cont.)

7.3. Saudi Arabia

• Top Payment Method Preferred in Online Shopping, by Selected Product Categories, in % of Millennial Online Shoppers, 2015

8. Africa

8.1. Regional

• Payment Methods Most Used in Online Shopping, in % of Online Shoppers, by Ghana, Kenya, South Africa, Uganda, December 2016

8.2. South Africa


• Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, March 2016

• Share of Online Shoppers Who Would be Motivated to Shop Online More by Availability of the “On Delivery” Payment Method, in % of Online

Shoppers, March 2016

8.3. Nigeria


• Breakdown of Payment Methods Preferred in Online Shopping, in % of Online Shoppers, August 2016

8.4. Egypt

• Share of Online Shoppers Paying by Cash on Delivery, in %, June 2016

8.5. Morocco

• Payment Methods Used in Online Shopping, in % of Online Shoppers, February 2016

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1. Management

Summary

14 – 19

2. Global

Developments

20 – 28

3.

3.1.

3.2.

3.2.1.

3.2.2.

3.2.3.

3.3.

3.3.1.

3.3.2.

3.3.3.

3.3.4.

3.3.5.

Asia-Pacific

Regional

Advanced Markets

Japan

South Korea

Australia

Emerging Markets

China

India

Indonesia

Thailand

Vietnam

29 – 55

30 – 30

31 – 38

32 – 35

36 – 37

38 – 38

39 – 55

40 – 46

47 – 49

50 – 52

53 – 54

55 – 55

4.

4.1.

4.2.

4.2.1.

4.2.2.

4.2.3.

4.2.4.

4.2.5.

4.2.6.

4.2.7.

4.3.

4.3.1

4.3.2.

4.3.3.

4.3.4.

Europe

Regional

Advanced Markets

UK

Germany

France

Spain

Italy

Netherlands

Sweden

Emerging Markets

Russia

Poland

Greece

Czech Republic

56 – 91

57 – 58

59 – 81

60 – 63

64 – 71

72 – 73

74 – 76

77 – 78

79 – 79

80 – 81

82 – 91

83 – 87

88 – 88

89 – 89

90 – 91

5.

5.1.

5.2.

5.3.

North America

Regional

USA

Canada

92 – 99

93 – 93

94 – 98

99 – 99

6.

6.1.

6.2.

6.3.

6.4.

6.5.

Latin America

Regional

Brazil

Mexico

Argentina

Colombia

100 – 112

101 – 101

102 – 105

106 – 110

111 – 111

112 – 112

7.

7.1.

7.2.

7.3.

Middle East

Regional

UAE

Saudi Arabia

113 – 120

114 – 118

119 – 119

120 – 120

8.

8.1.

8.2.

8.3.

8.4.

8.5.

Africa

Regional

South Africa

Nigeria

Egypt

Morocco

121 – 129

122 – 122

123 – 125

126 – 127

128 – 128

129 – 129

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Credit Card 73.9%

Convenience Store Payment

5.3%

Prepaid Card (e.g. Amazon Gift Card)

5.1%

Cash on Delivery 4.0%

Debit Card 3.4%

Online Banking 2.8%

E-Money (Edy, Suica, Nanaco, Waon, QUIKPay)

2.2%

Transfer at a Financial Insitution

1.4% Others 1.9%

“Credit card” was the payment method most used by 73.9% of online

shoppers in Japan in March 2016. Japan: Breakdown of Payment Methods Most Used in Online Shopping, in % of Online Shoppers, March

2016

Survey: based on a survey of 760 Internet users, aged 20-59; the base of respondents for this question were 508 digital buyers

Source: JustSystems cited by Ekonomikata, May 2016

Note: does not add up to 100% due to multiple answers possible

Survey: based on a survey of 1,512 consumers, ages 18+; conducted online in November 2015, and 2,219 consumers in 2016

Source: Cetelem, Nielsen, December 2016

1%

2%

5%

16%

19%

72%

52%

2%

2%

3%

17%

23%

51%

61%

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

Other Payment Methods

Financing

Revolving Credit Card

Cash on Delivery

Credit Card

PayPal

Debit Card

2016

2015

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“Debit card” was the payment method most used by online shoppers

in Spain in 2016, while usage of “PayPal” declined compared to 2015. Spain: Payment Methods Used in Online Shopping, in % of Online Shoppers, 2015 & 2016

in % of Online Shoppers

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Business

Sample Report: Global Alternative Online Payment Methods: Full Year 2016