A new study from Juniper Research has found that remote payments for digital and physical goods will surpass $3.3 trillion this year, up 10% compared to 2017.
The new research argued that alternative payment mechanisms would “comprise an ever increasing proportion of online spend”.
Juniper says that PayPal already accounts for 20% of mobile and online physical goods transactions made outside China, while the success of Alipay and Weixin Pay within China means that these two players combined now account for 45% of global payment volumes.
The analyst also claimed that there was a “significant opportunity” for more nascent options, such as the various OEM-Pay solutions and carrier billing, recently adopted by Amazon in Japan, for physical goods purchases.
The research also highlighted the major pain points for merchants and consumers. It argued that European merchants needed to be aware of the implications of PSD2 on card-on-file, meaning they would need to be ‘white-listed’ by consumers for payment details to be stored.
It claimed SCA (Secure Customer Authentication) obligations could potentially adversely impact on conversion rates by increasing friction at checkout.
You can read Juniper Research’s latest report, Mobile & Online Remote Payments for Digital & Physical Goods, here.