WorldPay study reveals cultural differences in Alternative Payments

WorldPay, recently launched ‘Optimizing your Alternative Payments’, an in-depth global whitepaper and interactive heatmap of the alternative payments landscape, and the varying cultural preferences of payment types by geography.

According to WorldPay, the alternative payments (AP) market is growing at a phenomenal rate. It currently accounts for EUR165 billion of global eCommerce transactions around the world -- 22% of the total transactional value. It is estimated that there are currently over 230 AP schemes operating globally including: real-time bank transfer, offline credit transfer, direct debits, eWallets, paper-based payments and mobile payments.  Can it really only be 230? It seems that everyday (sometimes several times)  we are bombarded with the launch of one new life – enhancing life – changing product or another…

The AP market is expected to grow 13% by 2015 and within eCommerce, spend via alternative payments will outstrip that of card payment schemes. Growth rates of payment types vary; for example, eWallets currently lead the way with 36% of the market and this is expected to rise to 43%. Real-time bank transfers only make-up 12% of the AP types today but this figure is expected to rise to 20% in the next three years.

In the US, card payments dominate (17%). It is only due to the scale of the eCommerce market in the US,  that AP transactions comprise EUR46.6 billion of online spend. In other regions APs have a stronger share of the payments market.

Key country  findings from the Optimizing your Alternative payments whitepaper reveal that :

Germany - is a leading AP market globally. Currently 66% of eCommerce purchases (EUR45 billion) are made via alternative payment types. Online credit card penetration is low whilst managed offline credit transfers are popular. Elektronisches Lastschrift Verfahren (ELV), a form of direct debit payment, makes up a huge 28% of the market

India - Internet bank payments are the preferred choice when paying online. Prepaid cards and cash payments are also popular but mobile payments are gaining prominence due to the large number of mobile phone users in this region

China - Alipay dominates in China with 60% of the market share. Cash on delivery is also a popular form of payment (20%). China UnionPay credit cards are also important for retailers entering the Chinese market. As a card scheme, it is already bigger than MasterCard and forecast to be bigger than Visa this time next year

Austria - Mobile payments are popular with Paybox supporting over five million users
Netherlands - Whilst the eCommerce market is relatively underdeveloped, two thirds of payments are made using alternatives (66%) -- the vast majority using iDEAL, a native real-time bank transfer

Phil McGriskin, Chief Product Officer, WorldPay, comments: "Cultural payment preferences have always existed but until fairly recently, online purchasing options were dominated by global card schemes. With the advances in technology, a new generation of  shoppers, and developing online economies, alternative payments are growing in popularity. This presents an opportunity in the eCommerce space for merchants to gain a competitive advantage by offering customers the option to pay using their preferred payment type. Merchants need to identify where their target customers are located and offer the relevant payment options to cater to cultural preferences. This will ultimately drive revenue for merchants, especially in new and developing economies."  

 

What are the factors driving AP in your market ? What USPs will payment schemes have to provide to   protect their hold in an ever changing landscape?view the

To view the latest jobs in the card and payment industry, go to http://www.cardandpaymentjobs.com

 

Going Mobile With The Social Media In Recruitment Conference

With less than three weeks to go until the Social Media in Recruitment Conference (19^th April 2012) the popularity of mobile as a way of accessing social networking sites shows no sign of  slowing down.

“It should come as no surprise that the major social networking sites have a mobile version of their website” said Mike Taylor from Web Based Recruitment, organiser of the London conference. “Why? Because they all recognise that having a mobile enabled website is key to making it a seamless experience for their users, whether they are using a mobile phone or a tablet device.”

As of December 2011 Facebook had 845 million monthly active users, with 425 million active users accessing their Facebook account through a mobile device. “There is no way that Facebook would want to alienate almost half their active users so it makes perfect sense to offer a mobile alternative” continued Taylor. “But can the same approach be said of recruitment?”

Mobile Recruitment

With more and more Recruiters using social networking sites like Facebook, LinkedIn and Twitter to attract new candidates, Taylor feels there has been a lack of attention been paid to the user experience once candidates have  shown enough interest to visit a recruiting website on their mobile phone. “A lot of time, effort and money can go into attracting candidates, but all that good work can be undone by not making company information, job vacancy details and the application process “mobile-friendly”. Unfortunately this bad user-experience is still happening far too often.”

Taylor feels that there are two main reasons for this “One is a lack of understanding as to how many people already visit a company website using a mobile device and secondly confusion around whether it is best to have a mobile recruitment app or a mobile website (or both).”

Brand New Speaker Session

Recognising the growing importance of mobile as part of social media, and to help simply the decision making process for companies looking to “go mobile”, Taylor has arranged a brand new addition to the conference programme where delegates will clearly be able to learn the difference between mobile recruitment apps and mobile websites.  “Delegates will be in a position at the end of the conference to fully understand the benefits of both options and to judge what would be most appropriate in their own company.

Retailers v Recruiters

“If you owned a retail website, and you had people wanting to buy something from you via their mobile phone, I am sure you would do everything you could to make sure they could view your products and make a purchase online. If you didn’t, then you would lose out on potential sales.

So why should recruitment be any different? You are in effect “selling” your jobs to people, so why make it difficult for them to “buy” from you by not having a “mobile friendly” approach to recruiting?”

Exhibition Area & Sponsorship

In addition to the conference there is also an exhibition area where delegates will be able to talk to companies and see demonstrations of various social media related products and services.  Any company interested in getting involved as a sponsor or exhibitor at the 2012 Social Media in Recruitment Conference should contact Mike Taylor through the conference website.

 To view the latest jobs in the card and payment industry, go to http://www.cardandpaymentjobs.com