By Eric Fergusson, Head of Retail Services, eCommera
Apple Pay has really brought alternative payments into the spotlight and while there is a lot of consumer enthusiasm around its launch in the UK, the full range of emerging (and disruptive) alternative payment options should not be overlooked. The use of different payment methods has grown at around 35% on average over the last few years, and is expected to surpass card payments in 2017 with a market share of 59% of online transactions. eWallets alone are predicted to have a 41% share of the global payments market by 2017, with sales set to reach £1,126 billion.
With over 300 alternative payment options available globally, understanding which methods should be considered can seem to be an overwhelming task. However, it is essential for retailers to understand how different payment methods can reduce barriers to purchase and therefore result in an uplift in revenue.
1. Amazon payments – eWallet: With Amazon Payments, consumers can login and pay using their saved Amazon details. This method of payment is extremely popular in the US with growing popularity in the UK.
2. Klarna : Klarna takes on all the risks for the retailer by acting as a payment gateway and fraud engine; whilst allowing customers single-click checkout with 14 day payment terms.
3. GoCardless – Direct Debit: GoCardless provides an easy way of setting up and managing/maintaining direct debits online. Founded in 2011, it has quickly grown into one of Europe’s leading Direct Debit providers, processing over half a billion pounds a year for over ten thousand businesses.
4. MasterPass – eWallet: MasterPass is an eWallet for all MasterCard, debit and Maestro cards. Those who use the eWallet will be able to buy goods, or pay for services, at a diverse range of online sites both in the UK and overseas.
5. Powa - Powa: is an international commerce specialist that combines payment enablement technologies with an all-in-one, mobile point of sale solution and a cloud-based ecommerce platform. With Powa consumers have access to a single point of integration to process their payments via credit and debit cards, e-wallets or real-time bank transfers.
For a full range of alternative payment providers across the globe please read our overview here.