The growth of online shopping has been a key factor in transforming the way consumers pay over the last decade, new research from the Payments Council has demonstrated. Now the council predicts the coming decade will all be about paying over the mobile phone.
The Way We Pay research from the Payments Council, out today, brings together the big trends in payment since 2001. And it found that while three out of five one-off payments are still small cash transactions, debit cards are now used for the majority of payments – debit card spending has risen almost fourfold since 2001. Online shopping is one key factor in that. In the future, says the research, cards may also seem archaic as more people use their mobile phones to pay.
Adrian Kamellard, chief executive of the Payments Council said: “The quiet revolution in payments has enabled the creation of whole new industries such as e-shopping, it has changed our behaviour, and it has reduced transaction costs, and increased the speed and efficiency with which we can all pay each other.”
$125 billion – The total transactional volume of China’s online retail market by the end of 2012. This accounts for 5.2 percent of China’s overall sale of consumer goods. With a staggering growth recorded in the last 5 years, Chinese ecommerce market is apparent to scale new heights. We could see some of these in 2013, if not all.
China will surpass US to become the biggest online commerce market
According to a recent study, Chinese ecommerce market will reach $251 billion by the end of 2013, which is annoyingly close to US’ $252 billion. Chinese ecommerce market is leveraging the surge of their internet users. With this in mind, the Chinese ecommerce companies are improving their ecommerce ecosystem to become the world’s largest ecommerce market, which is backed by their government. According to them, this target is a high-priority task in 2013.
Second-tier cities will join the ecommerce bandwagon
According to Alibaba group, the Chinese ecommerce behemoth, sales growth in the top Chinese cities like Shanghai, Beijing and Guangzhou were below 40 percent, while the same in the smaller cities rose above 60 percent. Alibaba recorded a massive $160 billion in revenues in 2012. Read more
Groupon is entering the mobile payments space with its own offering, Groupon Payments. The service, which facilitates credit card transactions, is available to any small business in the U.S.; however, it’s offered to Groupon merchants at cheaper rates.
Groupon is positioning the service as easier and less expensive for small businesses to use than traditional payment systems. It is built into the latest version of the Groupon Merchants app for the iPhone and iPod touch.
In addition to lower transactions fees, Groupon also promises to pay its users overnight instead of waiting the standard two or three days for a credit card payment.
Swiped transactions for MasterCard, Visa and Discover are 1.8 percent plus15 US cents per transaction. For American Express, the fee is 3 percent plus 15 cents per transaction. Read more
Online payments had been a major obstacle for ecommerce in the past. Today, it has grown leaps and bounds, providing an aid to ecommerce development. The beginning of the 21st century saw the rise of ecommerce and e-payments and now it looks like the commerce and payments will be extended to mobile devices also. Read more