Sample Report: Global Online Payment Methods: Second Half 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. It takes into account a wide definition of online payment, including payment methods used in online

shopping and mobile payment, such as remote and proximity payments.

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 the last six months of 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 an overview of global online and mobile payment developments. 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 B2C E-Commerce sales and, where applicable, grouped by advanced and emerging markets. Furthermore,

where available, regional information was also included.

Depending on data availability, the following types of market information are included: the most used and/or most preferred payment methods among online and

mobile shoppers, information about online and mobile payment users, such as security perceptions, breakdown of E-Commerce sales by payment methods,

number and value of online/mobile payment transactions. Not all the mentioned types of information are available for each of the covered countries. For selected

leading advanced and emerging countries, 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.

MOBILE PAYMENT A wide definition of mobile payments includes remote payments made remotely in M-Commerce and proximity

payments made in-store, such as via QR code scanning and NFC technology.

MOBILE PROXIMITY PAYMENT A mobile payment where the merchant and the consumer are present in the same location and the interaction between

the consumer’s device (card, mobile device) and the POS is conducted using a proximity technology (e.g. NFC).

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.

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.

E-WALLET A prepaid digital account, allowing users to store money and use it in online or mobile transactions. The examples of E-

Wallets 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.

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

• 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

• Reasons To Choose the Preferred Payment Method in Cross-Border Online Shopping, in % of Cross-Border Online Shoppers, 2016

• Security Authentication Features That Online Shoppers in the USA and the UK Would Consider Setting Up for Online Purchases in the Next 12

Months, in %, November 2016

• Mobile Payments Share of Total Consumer Card Payments, in %, 2016e & 2021f

• Mobile and Wearable Contactless Payments, in USD billion, 2015 & 2018f

• Breakdown of Mobile Payments by Usage Case, by Europe and North America, 2016e

• Share of Internet Users Who Look Forward to Being Able to Pay for More Transactions from Mobile Device, in %, by Asia-Pacific, Europe, Latin

America, the USA, and Global Average, August 2016

• Contactless Payment User Penetration, in % of Banked Population, July 2016

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

• Products and Services Paid for via Mobile Wallet, in % of Mobile Shoppers Who Paid with Mobile Wallet, August 2016

• Share of Mobile Shoppers Paying with Mobile Wallets, by Selected Countries, in %, August 2016

• Probability of Using Mobile Wallets, in % of Smartphone Owners, by Selected Countries, July 2016

3. Asia-Pacific

3.1. Advanced Markets

3.1.1. Japan

• Online and Mobile Payment Trends and News about Players, H2 2016

• Top Places to Use Credit Card, incl. “Online Shopping/Mail Order”, in % of Internet Users Who Used Credit Card in the Previous 6 Months,

November 2016

• Breakdown of Attitude to Being Asked to Enter a Password or Other Identification in Addition to Credit Card Number and Expiration Date When

Shopping Online, in % of Adults, July 2016

• Mobile Payments Solutions Used for Payment In-Store, in % of Internet Users, August 2016

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3. Asia-Pacific (Cont.)

3.1. Advanced Markets (Cont.)

3.1.2. South Korea

• Daily Average Value of Mobile Card Payments, in KRW billion, 2014 & 2015

• Reasons for Not Using Mobile Financial Services, by Score, in %, 2015

3.1.3. Australia

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

3.2. Emerging Markets

3.2.1. China


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

• Number of Online Payment Users, in millions, and Penetration, in % of Internet Users, 2012 – 2015 & June 2016

• 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

• Number of Mobile Payment Users, in millions, and Penetration, in % of Mobile Internet Users, 2014, 2015 & June 2016

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

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

3.2.2. India


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

• Value of Payment Transactions by Selected Non-Cash Payment Methods, in INR billion, Volume, in millions, and Change, in %, incl.

Mobile Wallets, FY 2014-2015 & FY 2015-2016

3.2.3. Indonesia

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

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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

• Breakdown of Retail Payment Transactions by Methods, incl. Mobile, in %, 2016

• Top 10 Countries By Mobile Payment User Penetration, in % of Surveyed Internet Users, September 2016

• Expectations Regarding the Provision of Technical Support for Mobile Payments, in % of Millennials, by Germany, Italy, the Netherlands,

and the UK, July 2016

4.2. Western Europe

4.2.1. UK


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

• Value of E-Commerce Payments with Credit and Debit Cards, in GBP million, and Volume, in millions, by Retail and Services Sector, 12

Months to November 2016

• Use of Mobile Payments, by Contactless, In-App and In-Store, in % of Smartphone Owners with a Credit/Debit Card, 2016

4.2.2. Germany


• 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 the Use of 3D Secure Authentication, in % of Online Retailers, 2015

• Awareness of Mobile Payment Providers, incl. Mobile Wallets, in % of Adults, January 2016

4.2.3. France

• Share of Respondents Who Used 3D Secure, in %, 2015 & 2016

• Breakdown of Readiness to Pay via Mobile Phone, in % of Internet Users, June 2016

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4. Europe (Cont.)

4.2. Western Europe (Cont.)

4.2.4. Spain

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

4.2.5. Italy

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

4.2.6. Sweden

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

4.3. Eastern Europe

4.3.1. Russia

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

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

• Online Payment Value, in RUB billion, and in % Year-on-Year Change, 2014 – 2017f

• Breakdown of Awareness and Usage of Contactless Payments, by Contactless Bank Cards and Contactless Payment with Mobile Phone,

in % of Adult Population, by Total, With and Without Higher Education, October 2016

4.3.2. Poland

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

• Types of Mobile Payment Used, in % of Mobile Payment Users, 6 Months to December 2016

4.3.3. Turkey

• Number of Domestic E-Commerce Transactions with Bank Cards, in millions, and Value, in TRY million, Q1 2014 – Q3 2016

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

2016

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5. North America

5.1. Regional

• Digital Payment Methods Used at Least Weekly, by Current Use and Future Use, in % of Consumers, July 2016

5.2. USA


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

• Payment Methods Perceived as Safest for In-Store and Online Purchases, in % of Consumers, 2016

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

• Mobile Payments, by Mobile App/Browser and Mobile Proximity Payments, in USD billion, 2013 – 2020f

• Breakdown of Retail Payment Transactions by Methods, incl. Mobile, in %, 2016

• Proximity Mobile Payment Transaction Value, in USD billion, and Breakdown by Transaction Value, in %, 2015 – 2020f

• Breakdown of Proximity Mobile Payment Users by Age Group, in %, 2016

• Breakdown of Attitude to Using Mobile Device to Pay for Transactions at a Store Checkout Counter, in % of Consumers, October 2016

• Factors that Make Consumers Hesitant to Use Mobile Payment Services, in % of Internet Users, February 2016

• Digital Wallets Used, in % of Internet Users, August 2016

• Volume of In-Store Payments with Android Pay, Apple Pay and Samsung Pay in the USA, in USD billion, 2016e

• Number of In-Store Monthly Users of Android Pay, Apple Pay and Samsung Pay in the USA, in millions, 2016e

• Selected Data Related to Usage of Android Pay, Apple Pay and Samsung Pay in the USA, incl. Awareness, Usage for Purchase, Frequency of

Usage, Average Number of Cards Loaded, and Satisfaction Rating, June 2016

5.3. Canada

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

• Breakdown of Frequency of Using Mobile Phone as a Payment Device, in % of Consumers, 2014 - 2016

• Companies Most Trusted with Providing a Mobile Payment Service, in % of Consumers, July 2016

• Circumstances That Would Make Internet Users in Canada More Likely to Use a Mobile Wallet, in % of Internet Users, April 2016

6. Latin America

6.1. Regional

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

• Penetration and Usage of Contactless Cards and Mobile Payment, in % of Consumers With Bank Account, July 2016

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6. Latin America (Cont.)

6.2. Brazil

• Online and Mobile Payment Trends and News About Players, H2 2016

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

• Breakdown of Online Shoppers’ Preference for Payment in Installments, in %, H1 2016

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 Storing Credit/Debit Card Information With Online Shops, in % of Online Shoppers, 2015 & 2016

• Number of Authorized Payment Transactions on E-Commerce Websites, in millions, Value, in MXN billion, and Authorization Rate, in %

of Transactions and in % of Transaction Value, by Credit Cards and Debit Cards, Q1 2015 – Q3 2016

• Chargeback Rate, in % of Number of Authorized Payment Transactions on E-Commerce Websites and in % of Their Value, by Credit

Cards and Debit Cards, Q1 2015 – Q3 2016

6.4. Colombia

• Share of Online Shoppers Preferring to Pay by Credit Card, in %, June 2016

• Breakdown of Online Payment Made Through Payment Gateways by Credit Cards, Debit to Bank Account and Others, 2014 & 2015

7. Middle East

7.1. Regional

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

• Devices Preferred for Mobile Payment in the Middle East and Africa, in % of Internet Users with Bank Accounts, Summer 2016

• Breakdown of Attitude to Mobile Payment and Shopping-Related Activities, in % of Online Shoppers in MENA, March 2016

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7. Middle East (Cont.)

7.2. UAE

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

• Share of Millennial Online Shoppers Preferring to Pay by Credit Card, in %, by Selected Product Categories, 2015

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

• Top Improvements That Would Make Online Shoppers Buy Online More, in % of Online Shoppers, March 2016

8.3. Nigeria

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

8.4. Kenya

• Mobile Payment Statistics, incl. Number of Transactions, in millions, Value of Transactions, in KES billion, Number of Customers, in

millions, and Number of Agents, in thousands, 2008 – 2015 & First Nine Months of 2016

• Purposes of Using Mobile Money Services, in % of Mobile Money Users, October 2016

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1. Management

Summary

14 – 20

2. Global

Developments

21 – 37

3.

3.1.

3.1.1.

3.1.2.

3.1.3.

3.2.

3.2.1.

3.2.2.

3.2.3.

Asia-Pacific

Advanced Markets

Japan

South Korea

Australia

Emerging Markets

China

India

Indonesia

38 – 58

38 – 45

39 – 42

43 – 44

45 – 45

46 – 58

47 – 54

55 – 57

58 – 58

4.

4.1.

4.2.

4.2.1.

4.2.2.

4.2.3.

4.2.4.

4.2.5.

4.2.6.

4.3.

4.3.1.

4.3.2.

4.3.3.

Europe

Regional

Western Europe

UK

Germany

France

Spain

Italy

Sweden

Eastern Europe

Russia

Poland

Turkey

59 – 88

60 – 64

65 – 79

66 – 69

70 – 74

75 – 76

77 – 77

78 – 78

79 – 79

80 – 88

81 – 84

85 – 86

87 – 88

5.

5.1.

5.2.

5.3.

North America

Regional

USA

Canada

89 – 108

90 – 90

91 – 104

105 – 108

6.

6.1.

6.2.

6.3.

6.4.

Latin America

Regional

Brazil

Mexico

Colombia

109 – 122

110 – 111

112 – 114

115 – 120

121 – 122

7.

7.1.

7.2.

7.3.

Middle East

Regional

UAE

Saudi Arabia

123 – 131

124 – 128

129 – 130

131 – 131

8.

8.1.

8.2.

8.3.

8.4.

Africa

Regional

South Africa

Nigeria

Kenya

132 – 139

133 – 133

134 – 136

137 – 137

138 – 139

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PayPal 60% Credit Card

20%

Postepay Prepaid Card 14%

Cash on Delivery 4%

Bank Transfer 2%

60% of online shoppers in Italy paid by PayPal, compared to 20%

paying by “Credit card”, as of October 2016. Italy: Breakdown of Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2016

Survey: based on a survey of 1,038 respondents, conducted in October 2016; the results relate to respondents who said they shop online at least once a year

Source: Idealo, Survey Sampling International, January 2017

Note: does not add up to 100% due to multiple answers possible; only top 10 responses are shown

Survey: based on a survey of 1,234 online shoppers, conducted in January 2015 – March 2015, and 1,829 online shoppers in August 2016; online shoppers are defined as

individuals who purchased via computer, smartphone or tablet electronically within the previous 3 months

Source: AMIPCI, ComScore, Visa, IBM, AMVO, Prosoft 3.0, Ministry of Economy, March 2015; AMIPCI, ComScore, MasterCard, Prosoft 3.0, Ministry of Economy, December 2016

15%

16%

19%

18%

24%

28%

29%

53%

52%

58%

14%

16%

16%

17%

22%

27%

30%

51%

56%

62%

0% 25% 50% 75% 100%

Gift Card

Prepaid Card

MercadoPago

Commercial Credit Card

Bank Deposit

Bank Account Transfer

Oxxo

Personal Credit Card

Debit Card

PayPal

2016

2015

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The use of “PayPal” and “Debit card” by online shoppers in Mexico

increased between 2015 and 2016, while “Credit card” decreased. Mexico: Top 10 Payment Methods Used in Online Shopping, in % of Online Shoppers, 2015 & 2016

in % of Online Shoppers

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Business

Sample Report: Global Online Payment Methods: Second Half 2016