Mobile payment will surpass credit cards to become the most preferred way to pay for e-commerce by 2019, United Nations Conference on Trade and Development (UNCTAD) said in a report.
Credit and debit cards accounted for nearly 51% of all e-commerce payments in value terms in 2014. However, their share is expected to drop to 46% by 2019 as e-wallets and other alternative payment methods rise in importance.
Go deeper with GlobalData
Digital payments are dominated by credit and debit cards in developed regions, followed by e-wallets. However, in developing nations credit cards are rarely preferred as new online and mobile payment methods are growing in popularity, the report noted.
In places like Egypt, around 90% e-commerce transactions are paid by cash-on- delivery, and in LDCs the reliance on cash is even more pronounced.
The report noted that in China, the preferred payment method for business to consumer (B2C) e-commerce is Alipay, which used by 68% of all online shoppers in the country. While in Kenya, mobile money is more commonly used than credit cards for e-commerce, although cash on delivery remains the main method.
E-wallets emerged as the most popular method of payment for cross-border transactions.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataDistributed ledger technologies such as blockchain may increasingly be used for cross- border payments in the future.
“This technology can make online payments safe, and being peer-to-peer, it is less expensive than intermediated payment platforms,” the report stated.
