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COUNTRY GUIDES FOR SUCCESSFUL GLOBAL EXPANSION
GLOBAL ONLINE PAYMENT
PREFERENCES
ESTABLISHING PROFITABLE DIGITAL COMMERCE BEYOND YOUR BORDERS DEPENDS ON BEING ABLE TO QUICKLY ADAPT TO THE SPECIFIC CHARACTERISTICS OF EACH NEW MARKET.
Understanding local differences in payment dynamics, buyer behavior, checkout considerations, treasury issues, mandates and risk, could directly affect your market reach, sales conversion and operational efficiency.
To help you plan your global expansion with ease, we have compiled this online payment preferences guide for key digital commerce markets. Each country factsheet in this guide contains:
» Information on local methods of payment
» Restrictions, mandates and legal requirementsthat ought to be considered
» A snapshot of the mobile payments landscape
BRAZIL
CHINA
FRANCE
DENMARK
FINLAND
GERMANY
ITALY
JAPAN
MEXICO
RUSSIA
SOUTH KOREA
NETHERLANDS
NORWAY
SPAIN
SWEDEN
UK
JUMP TO
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BRAZIL CURRENCY: BRAZILIAN REAL/BRL
ONLINE PAYMENTS 2015
BRAZIL, THE MOST POPULOUS COUNTRY IN LATIN AMERICA, HAS THE HIGHEST VOLUME OF RETAIL INTERNET SALES IN THE REGION.3 THE US $38.7 BILLION OF GOODS SOLD IN BRAZIL THROUGH eCOMMERCE IN 2014 WAS ALMOST THREE TIMES THE eCOMMERCE MARKET IN MEXICO, WHICH RANKED SECOND.
eCommerce• Consumer electronics and computer hardware will drive
eCommerce in Brazil; these segments currently account for morethan half the online retail revenues. Categories like clothing areless popular.4
• Many consumers continue to be cautious about shopping online,preferring to speak with a customer service representative priorto placing an order.5
• Domestic players like Americanas.com, MercadoLivre, BuscaPé,and Submarino dominate the online retail landscape alongsidea few multinational companies like Walmart and Carrefour. Globalcompetition like Sony, Netflix and Amazon Web Services aregradually making inroads.
• Retailers in Brazil have trained consumers in São Paulo and Riode Janeiro to expect packages in a couple of days, even when theyselect free shipping.4
• Shipping prices and delivery times vary by geography. Customersin remote cities like the north eastern city of Fortaleza or theAmazon’s regional capital of Manaus can expect deliveries to takethree weeks or more, even after paying steep shipping charges.
$15.9$22.934.627.0%billionbillionmillion
$38.7billion
Source: CyberSource based on in-country survey and ComScore, 2013.
BOLETO BANCARIO is a domestic, alternate payment method allowing customers to pay by cash, at a physical bank branch in their area, or using an ATM machine. Boletos cannot accommodate refunds. About a third of consumers who use Boleto Bancario do not have access to online payment methods.6
eCommerce Annual Sales Growth Rate in 20142*
eCommerce Sales Volume in 20141*
Digital Buyers in 20142
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
eWALLET (PAYPAL,
MERCADO PAGO)
STORE CARD
DIRECT DEBIT, GIFT CARD,
PREPAID
HIPERCARD
4.1%
ONLINE PAYMENT PREFERENCE
71%CREDIT/ DEBIT CARD
10%BOLLETOS
5.1%
5%4.8%
BOLETO BANCARIO
*This projection does not include C2C transactions, taxes, and other payments made to the government. N.B. All dollar figures in this document are in US dollars.
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cybersource.com© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
BRAZIL ONLINE PAYMENTS 2015
mCOMMERCE AND MOBILE PAYMENTS » The availability of lower
priced tablets has resulted in 7.9 million tablets sold in 2013, a 142% increase over the previous year.11
» Long page-loading times were the main barrier to more mobile purchases, cited by 32.1% of smartphone users surveyed. Other problems cited include small screen size and difficulty reading product information.12
68% of Brazilian Population13
137 millionMobile Phone Users13
39 million Smartphone Users13
44% of Brazilian
Population 13
Methods of Payment• With a 71% share of online transactions, credit and debit
cards dominate online payment, due to rising disposable income and attractive promotions offered by card merchants.
• The Brazilian credit card market is dominated by domestic banks, with about 30% of the cards authorized for in-country transactions only.7
• Interest-free installment payments are popular, driven by low credit card spending limits and some of the highest interest rates on credit cards in the world.8
• Merchant funding in Brazil takes 30 days, with the credit card issuer settling funds on the 31st day after the transaction.
Fraud Prevention • As in any emerging market, businesses should be prepared to
diligently manage fraud in Brazil. According to a study conducted by CyberSource, the chargeback rate in Brazil is 0.74%, only slightly higher than the Latin American average of 0.63%, but significantly higher than the US average of 0.41%. The order rejection rate of 5.6% is more than double that of the US, which stands at 2.5%.9
Restrictions, Mandates, and Legal Requirements• On September 17, 2013 the Association of Brazilian Credit Cards
and Services Companies (Abecs) suggested financial institutions decline Dynamic Currency Conversion (DCC) transactions.
• Foreign retailers find that legal and tax requirements make eCommerce in Brazil a complex market to navigate.
• Brazil has some of the highest taxes and duties in the world, much higher than in other Latin America countries.10
1. eBit Empresa Estimates, 2013, eMarketer eCommerce database 2014, 2. eMarketer eCommerce database 2014, 3. Consumer Finance Latin America, Euromonitor International Inc., 2011, 4. Trends In Brazil’s eCommerce Market, Forrester Research Inc., 2011, 5. CyberSource International eCommerce Survey conducted by ComScore, 2011, 6. Market Opportunities Around the World, eMarketer Inc., 2012, 7. CyberSource Corporation, 2012, 8. Glenbrook eCommerce Market Analysis, Glenbrook Partners LLC, 2011, 9. CyberSource Latin American Fraud Prevention Report, CyberSource Corporation, 2012, 10. Market Opportunities Around the World, eMarketer Inc., 2012, 11. IDC as cited in eMarketer, Cheaper Devices Boost Tablet Sales in Brazil, 2013 12. Our Mobile Planet Study, Google, 2013, 13. eMarketer 2014 mCommerce Estimates, 14. Our Mobile Planet Smartphone Research, Google, 2013.
Figures rounded to nearest whole number.
30%of Smartphone Users Made a Purchase on their Smartphone14
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CHINA CURRENCY: CHINESE YUAN RENMINBI/CNY
ONLINE PAYMENTS 2015
eCommerce• Chinese consumers, especially those in smaller cities, favor
shopping with retailers through their Tian Mao† storefronts (formerly TMall) rather than brick and mortar stores. Major foreign brands with storefronts on Tian Mao include UNIQLO, Adidas, Levi’s and Gap.
• With consumers seeking more variety, quality and service, B2C eCommerce sales are expected to grow at a faster pace and will account for ~53.0% of the eCommerce market by 2015.3
• About 70% of consumers indicated they shop online at least once a week, compared with around 40% in the US and the UK.4
• Foreign retailers looking to sell to China have to build their own delivery systems by creating a network of local couriers and third-party express delivery services.
$47.4$217.4312.955.0%billionbillionmillion
$264.8billion
Alipay, owned by the Alibaba Group, is an electronic payment system similar to PayPal. It is the largest eWallet in China and extremely popular with consumers and retailers. Consumers need to register with Alipay in order to make payments. Purchases can be funded using debit cards, credit cards, and even cash.
CHINA’S ONLINE RETAIL MARKET IS ONE OF THE LARGEST AND MOST DYNAMIC IN THE WORLD. CHINESE CONSUMERS ARE RAPIDLY EMBRACING ONLINE SHOPPING – THEY ARE BUYING MORE FREQUENTLY, ACROSS MORE CATEGORIES AND SPENDING MORE PER PERSON EVERY YEAR. C2C SITES LIKE TAOBAO MARKETPLACE STILL DOMINATE THE LANDSCAPE.2
* Does not include C2C transactions, taxes, and other payments made to the government. † Originally a part of Taobao, Tian Mao or TMall, is a dedicated B2C platform featuring hundreds of thousands
of Chinese and international brands. It is by far the most popular B2C website in China.
N.B. All dollar figures in this document are in US dollars.
eCommerce Annual Sales Growth Rate in 20141*
eCommerce Sales Volume in 20141*
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
33%
29%
26%
6%
4%2%
CREDIT/ DEBIT CARD
eWALLETS
ONLINE BANK TRANSFER, DIRECT DEBIT
CASH ON DELIVERY
GIFT CARD
OTHER
ONLINE PAYMENT PREFERENCE
Source: CyberSource estimates, 2013
‘eWallets’ include Alipay, Tenpay, PayPal etc.
HOME
© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
cybersource.com
CHINA ONLINE PAYMENTS 2015
Methods of Payment• Most payment cards in China are debit cards, and can only transact
in-country. Debit card eCommerce transactions are actually online bank transfers (push payments). Certain Chinese debit accounts have daily spending limits – sometimes as low as CNY 300 (USD ~$47).
• While initially not too common, credit cards are gradually becoming popular with upwardly mobile online shoppers in China. Many cards have single transaction limits, in addition to daily and monthly limits.5
• Some banks impose monthly transaction limits on payment gateways like Alipay, for payments linked to banks’ credit cards. For example, CITIC Bank restricts its cardholders to CNY 1,000/month (USD ~$155).
• Cash on Delivery (COD) remains a popular online payment method in China and is frequently the first option listed at leading online retailers. Many consumers prefer to inspect purchases prior to paying for them.
• Some companies cap the amount that can be paid via COD – Amazon.com, for example, allows COD payments for up to CNY 20,000 (approximately USD $3,000).5
Restrictions, Mandates, and Legal Requirements• Repatriation of funds from China is relatively difficult for
international businesses. Funds need to be routed through the State Administration of Foreign Exchange (SAFE). Further, the repatriation amount is subject to monthly limits.
• Businesses can access online transaction facilities from payment intermediaries only if they are domiciled in China and have Internet Content Provider and business licenses.
• In most instances, retailers are restricted from shipping directly to consumers. Instead, goods need to be routed through a local intermediary.
1. eMarketer 2014 eCommerce Estimates, 2. Global Survey of Online Shoppers, PwC, 2013 and CyberSource China, 3. Globalizing Ecommerce: What US Retailers Need to Know About Entering Foreign Markets, eMarketer, 2011, 4. Global Survey of Multichannel Shoppers, PwC LLP, 2011, 5. eCommerce Market Analysis, China, Glenbrook Partners LLC, 2010, 6. Achieving Total Retail Consumer expectations driving the next retail business model, PwC, 2014, 7. Alizila, 2013 as cited in Ystats China B2C eCommerce and Online Payment Report, 2013, 8. eMarketer 2014 mCommerce Estimates.
mCOMMERCE AND MOBILE PAYMENTS » Chinese shoppers are ahead of
the curve in terms of shopping with multiple devices, with 49% shopping on a tablet and 51% on a smartphone.6
» In early 2013, Alipay launched the Alipay Wallet mobile app to meet increasing demand for mobile payments. It offers online-to-offline payments, allowing customers to store and manage several online payment methods.7
75% of Chinese Population8
1,016 millionMobile Phone Users8
520 million Smartphone Users8
51%of Smartphone Users Made a Purchase on their Smartphone6
38% of Chinese
Population 8
Figures rounded to nearest whole number.
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ONLINE PAYMENTS 2015
eCommerce Annual Growth Rate in 20141
eCommerce Sales Volume in 20141
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
N.B. All dollar figures in this document are in US Dollars; monthly average rate EUR 1.0 = USD 1.370576 per December 2013. Market commentary and data contained in this factsheet, unless otherwise noted, has been researched and compiled by Payment Cards and Mobile.
ONLINE PAYMENT PREFERENCE5
DENMARK
DENMARK IS THE 9TH LARGEST eCOMMERCE MARKET IN EUROPE - IT GENERATED 2.8% OF EUROPEAN eCOMMERCE TURNOVER. DESPITE THE ALREADY HIGH PENETRATION OF ONLINE SHOPPING AMONG THE DANISH POPULATION, THE GROWTH RATE OF eCOMMERCE IN 2015 IS PREDICTED TO BE 8.9%.1
eCommerce• The country has a well-established online infrastructure.
93% of households had internet access in 2013, helpingDenmark to be one of the more mature eCommerce marketsin Europe.2
• In 2013, 62% of Danes made an online purchase at leastonce a quarter and 37% made an online purchase everymonth.3
• In 2013, 39% of Danes bought a product from a foreignwebsite, often from the UK, Germany and the USA.3
• Danish online buyers spent on average $3,242 per personin 2013, up 13.6% from 2012.
• Danish merchants usually sign contracts with the PSPs oftheir acquirer banks.
• From 2015, in line with EU-wide legislation, Danishmerchants will have to collect applicable VAT rates based onthe consumers’ residence.4 The applicable standard VAT ratein Denmark is 25%.
• Amazon and Bestseller are among the leading eCommerceretailers in Denmark’s fragmented market.3
$4.3$8.43.310.5%billionbillionmillion
CURRENCY:DANISH KRONE/DKK
$12.7billion
INVOICEOTHER
ONLINE BANK TRANSFERS
4%PAYPAL, PREPAID
CASH-ON-DELIVERY 1%
89%DEBIT AND CREDIT CARDS
2%2%
2%
Dankort is a Danish debit card scheme that is very popular at point-of-sale (POS) and on the internet. Merchants receive a payment guarantee from their acquiring bank.
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Figures rounded to nearest whole number.
DENMARK ONLINE PAYMENTS 2015
© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
cybersource.com
mCOMMERCE AND MOBILE PAYMENTS » In 2013, 31% of all Danish
smartphone users made a mobile purchase using a smartphone.6
» Danish merchants have started to use QR-codes and mobile apps as access channels to their online shops.
» Mobile network operators TDC, Telenor, Telia Sonera and 3 (Tre) have partnered with banks and payment networks to offer a digital wallet and have started to promote NFC-capable smartphones to their subscribers.
42% of Danish smartphone users are forecasted to purchase
products or services6
5 million Mobile Phone Users1
3 million Smartphone Users1
1. eMarketer 2014 estimates. 2. Eurostat Statistics. 3. PostNord – eCommerce in the Nordics 2014. 4. Required by EU Regulation. 5. DIBS – Nordic eCommerce Report 2013. 6. Google – Our Mobile Planet. 7. Card payments in the US include debit cards and credit cards.
Methods of Payments• Debit cards are the dominant payment means at POS outlets. The
Danish banks have positioned bank transfers and cards as online payment instruments.
• Denmark has a domestic debit card brand, Dankort, which is generally co-badged with Visa.
• Debit cards, as represented by Dankort, accounted for around 80% of internet payments in Denmark in 2013.
• All Danish credit cards are issued as Visa, MasterCard, American Express or Diners.
• In 2013, there were 1.51 cards per capita, with on average 243 card payments per capita (US cardholders made around 248 card payments in comparison).7
• The country has a decentralized payment infrastructure with 10 major issuer banks, 4 major acquirers, 1 major processor, 15 PSPs, 1 POS network and 2 Danish Electronic Money Institutions.
• New methods of payment emerging for Danish online buyers include Klarna, paysafecard, Ukash, PayEx, InPay, Nordea Solo, and Danske netBank.
• Leading Nordic bank groups have announced support for the digital wallet MasterPass for 2014/15.
Restrictions and Mandates• EMV standards and PCI standards are mandatory for card
payments in Denmark.
• Danish banks recommend the use of the security standard 3-D Secure.
• The legal framework for payment services applied in Denmark is compliant with European Union laws.4
84% of Danish
Population1
59% of Danish
Population 1
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ONLINE PAYMENTS 2015
eCommerce Annual Growth Rate in 20141
eCommerce Sales Volume in 20141
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
N.B. All dollar figures in this document are in US Dollars; monthly average rate EUR 1.0 = USD 1.370576 per December 2013. Market commentary and data contained in this factsheet, unless otherwise noted, has been researched and compiled by Payment Cards and Mobile.
ONLINE PAYMENT PREFERENCE5
FINLAND
FINLAND IS THE 11TH LARGEST eCOMMERCE MARKET IN EUROPE AND GENERATED 2.2% OF EUROPEAN eCOMMERCE TURNOVER. DESPITE THE ALREADY HIGH PENETRATION OF ONLINE SHOPPING AMONG THE FINNISH POPULATION, THE GROWTH RATE OF eCOMMERCE IN 2015 IS EXPECTED TO BE 6.2%.1
eCommerce• The country has a well-established online infrastructure. 89%
of households had internet access in 2013, helping Finland to be one of the more mature eCommerce markets in Europe.2
• In 2013, 43% of Finns made an online purchase at least once a quarter and 19% did so every month.3
• In 2013, 46% of Finns bought a product from a foreign website, often from the UK or Germany.3
• Finnish online buyers spent on average $3,615 per person in 2013, up 5.5% from 2012.
• Finnish merchants usually sign contracts with the PSPs of their acquirer banks.
• From 2015, in line with EU-wide legislation, Finnish merchants will have to collect VAT based on the consumers’ residence.4 The applicable standard VAT rate in Finland is 24%.
• Amazon and Verkkokauppa.com are among the leading eCommerce retailers in Finland’s fragmented market.3
$3.6$6.42.77.1%billionbillionmillion
CURRENCY:EURO/EUR
$10.1billion
Online bank transfer services specific to a particular bank such as Nordea Solo by Nordea allow users to make online credit transfer payments to merchants through their bank’s internet portal without providing their personal data to third parties. Online buyers must have a Finnish bank account with access to internet banking or mobile banking. Merchants receive a payment guarantee from their acquiring bank.
INSTALMENTS
PAYPAL OR MICRO-
PAYMENTS
OTHER
CASH-ON-DELIVERY
8%
2%2%
3%
40%
28%17%
ONLINE BANK TRANSFERS
DEBIT AND CREDIT CARDS
INVOICE
HOME
Figures rounded to nearest whole number.
FINLAND ONLINE PAYMENTS 2015
© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
cybersource.com
mCOMMERCE AND MOBILE PAYMENTS » In 2013, 26% of Finnish smartphone
users made a mobile purchase using a smartphone.6
» Finnish merchants have started to use QR codes and mobile apps as access channels to their online shops.
» Mobile network operators (e.g. Elisa, Sonera and DNA) have partnered with banks and payment networks to offer digital wallets and have started promoting NFC-capable smartphones to their subscribers.
28% of Finnish smartphone users are forecasted to purchase
products or services6
5 million Mobile Phone Users1
3 million Smartphone Users1
1. eMarketer 2014 estimates. 2. Eurostat Statistics. 3. PostNord – eCommerce in the Nordics 2014. 4. Required by EU Regulation. 5. DIBS – Nordic eCommerce Report 2013. 6. Google – Our Mobile Planet. 7. Card payments in the US include debit cards and credit cards.
Methods of Payments• Debit cards are the dominant payment means at POS outlets.
However, the Finnish banks have positioned bank transfers and credit cards as online payment instruments.
• By the end of 2011, the domestic debit scheme Pankkikortti was replaced by Visa Electron, Visa Debit and MasterCard Debit.
• All Finnish credit cards are issued as Visa, MasterCard, American Express or Diners.
• In 2013, there were 1.43 cards per capita, with an average of 224.8 card payments per capita (US cardholders made around 248 card payments in comparison).7
• The country has a decentralized payment infrastructure with 12 major issuer banks, 9 major acquirers, 2 major processors, 10 PSPs, 1 ATM network, 1 POS network and 3 Finnish EMIs (Electronic Money Institutions).
• New methods of payment emerging for Finnish online buyers include Klarna, paysafecard, Ukash, PayEx, Payson, InPay, Nordea Solo, and Danske netBank.
• Leading Nordic bank groups have announced support for the digital wallet MasterPass for 2014/15.
Restrictions and Mandates• EMV standards and PCI standards are mandatory for card
payments in Finland.
• Finnish banks recommend the use of the security standard 3-D Secure.
• The legal framework for payment services applied in Finland is compliant with European Union laws.4
86% of Finnish
Population1
48% of Finnish
Population 1
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N.B. All dollar figures in this document are in US dollars.
eCommerce Annual Sales Growth Rate in 20141
eCommerce Sales Volume in 20141
Digital Buyers in 20142
Digital Travel Sales in 20143
Retail eCommerce Sales in 20143
FRANCE CURRENCY: EURO/EUR
ONLINE PAYMENTS 2015
FRANCE IS THE THIRD LARGEST eCOMMERCE MARKET IN EUROPE, BEHIND THE UK AND GERMANY.4 WHILE eCOMMERCE GROWTH RATES REMAIN STRONG, mCOMMERCE IS ALSO GROWING IN POPULARITY.
eCommerce• While average spend per buyer dropped by 4% in 2014 to $109,
it was offset by a rise in the number of buyers and an increase in the frequency of purchases (from 18 times a year in 2013 to 20 times a year in 2014).5
• However, purchase frequency is significantly lower compared to other big eCommerce markets – only 14% of French online shoppers made a purchase at least once a week compared with 62% of Chinese, and 30% of Germans.6
• 80% of buyers want free shipping, 53% want free returns, and 49% would like the ability to make returns through physical stores.7
• The eCommerce landscape is fragmented, with the top ten players accounting for less than 50% of total sales in 2012.8 In 2012, the number of eCommerce websites grew by 17%.9
• The rate of fraud losses declined from 34.1 basis points in 2011 to 29 basis points in 2012 and the relatively low rates compared to other countries can be attributed to the early adoption of the EMV standard.10
• The vast majority of cardholders, (88%) have enrolled in 3D Secure, and 85% can receive a dynamic password by SMS for authentication.11
• Approximately 50% of merchants (accounting for 27% of transaction value in 2012) have implemented 3D Secure.7
• Other merchants fear card abandonment (estimated at 18% on account of 3D Secure) and are considering “selective 3D Secure”, which triggers authentication on selected transaction based on one or more risk parameters.7
ONLINE PAYMENT PREFERENCE
$15.0$62.030.511.0%billionbillionmillion
$77.0billion
Source: ComScore database, 2014
95.3%
OTHER
PAYPAL
3.5%
1.2%
CREDIT/ DEBIT CARD
HOME
cybersource.com© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
FRANCE ONLINE PAYMENTS 2015
mCOMMERCE AND MOBILE PAYMENTS » 2013 mCommerce sales are
estimated at $3.5 billion in France, a 160% increase over the previous year.12
» 26% of the French population has made purchases using mobile phones and 25% on tablets.13
Methods of Payment• Cartes Bancaires (CB) is the predominant domestic scheme in
France; 96% of cards are co-branded with Visa or MasterCard.4
• Most payment cards in France are debit cards. Many CB cards can have dual functions like debit and credit or debit and delayed-debit.
• Businesses offering Cartes Bancaires will need to establish a French entity and contract with a French acquirer.7
• There is a seven-day authorization lifetime. It is preferable to settle the transaction within six days of the authorization. Authorization can be postponed twice, after which settlement may be declined.7
• All online authorization requests MUST include the CVN value.7
• A number of digital wallets have recently been introduced including V.me, MasterPass, Paylib (backed by Société Général, BNPP and La Banque Postale) and PayPal remains popular.
76% of French
Population14
26%of Smartphone Users Made a Purchase on Their Smartphone 16
50 millionMobile Phone Users14
23 millionTablet Users15
27 million Smartphone Users14
40% of French
Population 14
34% of French
Population 15
Figures rounded to nearest whole number.
1. Fevad, 2. eMarketer, 3. Fevad press release, 2015 and eMarketer eCommerce database 2014, 4. Fevad press release, 2015 and eMarketer eCommerce database 2015, 5. Fevad, http://www.fevad.com/uploads/files/Publications/Chiffres_Cles_2014(1).pdf, Note: Conversion rate used: €1=$1.35, 6. Global Survey of online shoppers, PwC, 2013, 7. Ibid, 8. Euromonitor International, 2013, 9. Key Statistics, 2013, Fevad, 10. Observatoire de la sécurité des cartes de paiement as cited in the European Payment Cards Statistical Yearbook 2013-14, 11. Banque de France, http://www.banque-france.fr/observatoire/telechar/2013/Rapport-annuel-2012-chapitre1.pdf, 12. Key Statistics, 2013, Fevad, Note: Conversion rate used: €1=$1.35, 13. Global survey of online shoppers, PwC, 2013, 14. Our Mobile Planet Smartphone Research, 2014, 15. eMarketer 2014 mCommerce Estimates, 16. Our Mobile Planet Smartphone Research, Google, 2013.
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ONLINE PAYMENT PREFERENCE5
ONLINE PAYMENTS 2015
eCommerce Annual Growth Rate in 20141
eCommerce Sales Volume in 20141
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
N.B. All dollar figures in this document are in US Dollars; monthly average rate EUR 1.0 = USD 1.370576 per December 2013. Market commentary and data contained in this factsheet, unless otherwise noted, has been researched and compiled by Payment Cards and Mobile.
GERMANY
eCommerce• The country has a well-established online infrastructure with
88% of households having internet access in 2013 and proving to be one of the fastest moving eCommerce markets in Europe.2
• Germans are enthusiastic and frequent online shoppers. 96% of all internet users have purchased online.3
• Compared to an average $2,290.5 per person in the UK, the Germans spent $1,058.4 per person in 2013 for purchases on the internet, up 26.5% from 2012.
• German merchants usually sign contracts with PSPs independent of the contracts with acquirers.
• From 2015, in line with the EU regulation, German merchants will have to collect the applicable VAT rates based on the consumers’ residence.4 The applicable standard VAT rate in Germany is 19%.
• Amazon, the global merchant, is the leading eCommerce retailer by turnover in Germany. Apple Store is the other foreign merchant penetrating in the German top 20 online retailers.3
• The Otto Group, encompassing Otto.de, bonprix.de and baur.de, is the second largest eCommerce player in Europe.3
$15.1$63.445.619.0%billionbillionmillion
CURRENCY:EURO/EUR
$78.5billion
GERMANY IS THE SECOND LARGEST eCOMMERCE MARKET IN EUROPE AND GENERATED 17.4% OF EUROPEAN eCOMMERCE TURNOVER IN 2014. AS ITS ONLINE SHOPPING POPULATION CONTINUES TO GROW, THE GROWTH RATE OF eCOMMERCE IN 2015 IS FORECASTED TO BE 14.1%.1
PAYPAL
VISA DEBIT AND CREDIT CARDS
OTHER DEBIT AND CREDIT CARDS
CASH 0.8%
OTHER 2.2%
16.3%
15.9%
MASTERCARD DEBIT AND
CREDIT CARDS
7.5%3%
31%ELV (Direct Debit)
23.3%PAY ON INVOICE
ELV is a German, IBAN-based direct debit scheme that is very popular at point-of-sale (POS) and on the internet, although payment to merchant is not guaranteed. Some specialized providers offer services to mitigate the risk of non-payment.
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Figures rounded to nearest whole number.
GERMANY ONLINE PAYMENTS 2015
© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
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mCOMMERCE AND MOBILE PAYMENTS » In 2013, 28% of German smart phone users
made a mobile purchase using their smartphone.6
» In 2013, smartphones and tablets already amounted to 7% of the total online sales market in Germany.3
» In 2013, online consumer spending via smartphone and tablet increased to €3.2 billion ($4.4 billion).3
» German merchants have started to use QR-codes and mobile apps as access channels to their online shops.
» Leading German merchants have issued their own mobile apps, e.g. the Netto app of discounter Netto (Edeka Group). They include loyalty functions (e.g. eVouchers, discounts, outlet finder, QR-code scanning) and an IBAN-based direct debit payment function.
» Mobile network operators have partnered with banks and payment networks to offer digital wallets (e.g. Telekom MyWallet, VodaFone SmartPass) and have started to promote NFC capable smart phones to their subscribers.
32% of Smartphone Users made a Purchase on their Smartphone6
65 million Mobile Phone Users1
36 million Smartphone Users1
1. eMarketer 2014 estimates. 2. Eurostat. 3. EHI Retail Institute: Online Payment Study. 4. Required by EU Regulation. 5. ComScore. 6. Google – Our Mobile Planet. 7. Card payments means payments on debit cards and on credit cards
Methods of Payments• Debit cards are most commonly used to pay at POS outlets.
German banks have positioned credit cards as online payment instruments and accept debit card initiated ELV direct debits at POS outlets and IBAN-based direct debits on the internet.
• Most credit cards issued in Germany are charge cards. There are only a few revolving credit cards.
• Germany has a domestic debit card brand, girocard, most are co-badged* with Maestro or V PAY. The girocard card brand is not used on the internet.
• The online credit transfer payment services of SOFORT (from Klarna) and giropay (from German banks) play a niche role on the internet.
• In 2013, there were 1.63 cards per capita, with an on average low, 44.7 card payments per capita (US cardholders made around 248 card payments in comparison).7
• The country has a decentralized payment infrastructure with 30 major issuer banks, 16 active acquirers, 8 card processors, 20 POS network service processors and more than 50 internet payment service providers.
• New methods of payment emerging for German online buyers include Amazon, Yapital, clickandbuy, Skrill, Klarna, AfterPay, paysafecard and SOFORT.
• The digital wallet MasterPass has been piloted since 2013.
Restrictions and Mandates• EMV standards and PCI standards are mandatory for card
payments in Germany.
• German banks recommend the use of the security standard 3-D Secure.
• The legal framework for payment services applied in Germany is compliant with European Union laws.4
80% of German
Population1
45% of German
Population 1
Introduced in 2006, giropay is an online credit transfer service for online purchases. To use giropay the buyer needs to have a German bank account with access to internet banking or mobile banking operated by the participating German banwk. Giropay payments are authorized against the corresponding bank account and authenticated by a one-time online-banking transaction authentication number (TAN, mTAN) for authentication. Merchants receive a payment guarantee from their giropay acquirer, usually a bank.
* Co-badging is the practice of combining different payments brands on the same card.
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ONLINE PAYMENTS 2015
eCommerce Annual Growth Rate in 20141
eCommerce Sales Volume in 20141
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
N.B. All dollar figures in this document are in US Dollars; monthly average rate EUR 1.0 = USD 1.370576 per December 2013. Market commentary and data contained in this factsheet, unless otherwise noted, has been researched and compiled by Payment Cards and Mobile.
ONLINE PAYMENT PREFERENCE5
ITALY
ITALY IS THE 6TH LARGEST eCOMMERCE MARKET IN EUROPE. IN 2014, IT GENERATED 3.5% OF EUROPEAN eCOMMERCE TURNOVER AND HAD A RAPIDLY GROWING ONLINE SHOPPING POPULATION. THE GROWTH RATE OF eCOMMERCE IN 2015 IS EXPECTED TO BE 8.5%.1
eCommerce• The country has a well-established online infrastructure.
Sixty nine percent of households had internet accessin 2013,helping Italy become one of the high growtheCommerce markets in Europe.2
• Atypically, the Italian eCommerce market is dominated byservices that account for 61% of total spend.
• Italian online buyers spent on average $949 in 2013 forpurchases on the internet, up 16.5% from 2012.
• Italian merchants usually sign contracts with the PSPs of theiracquirer banks.
• From 2015, in line with EU-wide legislation, Italian merchantswill have to collect the applicable VAT rate for cross-bordersales based on the consumers’ residence4. The applicablestandard VAT rate in Italy is 22%.
• Amazon and eBay are among the leading eCommerceretailers in Italy.3
$7.5$8.215.111.3%billionbillionmillion
CURRENCY:EURO/EUR
$15.7billion
Launched in 2013, the online bank transfer service MyBank is supported by 75% of Italian banks. MyBank is IBAN-based, allowing users to make online credit transfer payments to merchants through the internet portal of their bank without the need to provide their personal data to third parties. Online buyers must have an Italian bank account with access to online or mobile banking operated by an Italian bank. Merchants receive a payment guarantee from their MyBank acquiring bank.
OTHER
BANK TRANSFERS
4%
3%
70%23%CREDIT CARDSPAYPAL
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Figures rounded to nearest whole number.
ITALY ONLINE PAYMENTS 2015
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ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
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mCOMMERCE AND MOBILE PAYMENTS » In 2013, 30% of Italians made a mobile
purchase using a smartphone or tablet.6
» In 2013, smartphones and tablets accounted for 3.8% of the total eCommerce market in Italy.
» In 2013, online consumer spending via smartphone and tablet increased to $585 million, up 160% from 2012.2
» The Italian mCommerce market is skewed slightly towards services that account for 53% of total spend.
» Italian merchants have started to use QR codes and mobile apps.
» Mobile network operators have partnered with banks and payment networks to offer digital wallets (e.g. TIM (Telecom Italia), VodaFone SmartPass, Wind and 3) and have started to promote NFC-capable smartphones to their subscribers.
34% of Italian smartphone users are forecasted to purchase
products or services6
49 million Mobile Phone Users1
24 million Smartphone Users1
1. eMarketer 2014 estimates. 2. Eurostat Statistics. 3. Osservatorio.net Digital Innovation: eCommerce B2C. 4. Required by EU Regulation. 5. Ystat Research, Europe Online Payment Methods: Second Half 2014. 6. Google – Our Mobile Planet. 7. Card payments in the US include debit cards and credit cards
Methods of Payments• Debit cards are the most commonly used method of payment
at POS outlets. However, the Italian banks have positioned credit cards as an online payment instrument. There is little online use of debit cards.
• Italy has two domestic debit card brands, Pagobancomat and Postomat, co-badged* Maestro, Electron or V PAY, and a domestic credit card brand, CartaSi, co-badged MasterCard or Visa.
• Italy has a credit card network with all credit cards issued having international card brands. Credit cards issued are MasterCard, Visa, American Express and Diners and the domestic brand CartaSi, which is co-branded MasterCard or Visa.
• Domestic cards are processed in Italy according to the rules of the domestic scheme, independent from the co-branded international brands.
• In 2013, there were 1.53 cards per capita, with on average only 29.7 card payments per capita. By comparison, US cardholders made around 248 card payments.7
• The country has a decentralized payment infrastructure with 30 major issuer banks, 10 major acquirers, 5 processors, 15 PSPs, 2 ATM/POS Institutions (Bancomat, Postamat) and 4 Italian Electronic Money Institutions with European passport.
• New methods of payment emerging for Italian online buyers include IBAN-based MyBank, SiPay, prepaid products like paysafecard, Ukash, wallets like Skrill, and carrier billing.
• Starting in 2013, Italian banks are recommending the online credit transfer service MyBank. In June 2014, Banca Sella reported that it had contracted with 4,000 merchants for the use of the MyBank service.
• The launch of the digital wallet MasterPass has been announced for 2014/15.
Restrictions and Mandates• EMV standards and PCI standards are mandatory for card
payments in Italy.
• Italian banks recommend the use of the security standard 3-D Secure.
• The legal framework for payment services applied in Italy is compliant with European Union laws.4
80% of Italian
Population1
39% of Italian
Population 1
* Co-badging is the practice of combining different payments brands on the same card.
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eCommerce Annual Sales Growth Rate in 20141
eCommerce Sales Volume in 20141
Digital Buyers in 20142
Digital Travel Sales in 20143
Retail eCommerce Sales in 20143
JAPAN CURRENCY: JAPANESE YEN/JPY
ONLINE PAYMENTS 2015
IN RECENT YEARS, JAPAN HAS MOVED FROM BEING THE eCOMMERCE LEADER IN ASIA PACIFIC TO THE NUMBER TWO POSITION (SECOND TO CHINA).4 WITH OVER 70% OF INTERNET USERS ALREADY SHOPPING ONLINE, EXPERTS BELIEVE THAT GROWTH RATES WILL CONTINUE TO DECLINE, THOUGH SALES FROM MOBILE DEVICES WILL RISE.5
eCommerce• Rakuten (annual sales over $4 billion), one of the largest internet
companies in the world, dominates eCommerce in Japan and provides a high quality, personalized service. The marketplace allows sellers to customize their page, run promotions, and communicate directly with the customer.6
• Nearly 90 percent of Japan’s internet users are registered on Rakuten, and they can shop from 40,000 businesses and services from small entrepreneurs to giants like Toshiba, Adidas, and Forever 21.7
• However, eCommerce in Japan is vibrant beyond Rakuten; some international retailers such as Gap, Inc. and Ralph Lauren have chosen to sell directly to the Japanese consumer via their own websites.8
• Japan is a mature eCommerce market and buyers expect online websites to be fully localized. This means checkout pages and error messages, not just the main page, should render in Japanese. Promotions are very commonplace and site designs very distinctive.9
• Depreciation of the yen means lower prices in Japanese online stores than in neighboring countries. According to Alipay, purchases from China quadrupled to over $661 million in the first half of 2013, while purchases from South Korea rose by 160 percent.10
• Shipping and delivery services are well-developed and efficient, and online shoppers are accustomed to receiving goods within a day or two of ordering. Goods ordered via Amazon Prime will often be delivered same day.
ONLINE PAYMENT PREFERENCE
$24.6$83.475.012.0%billionbillionmillion
$108.0billion
Source: ComScore panel, 2013. Based on traffic at large online stores only, therefore alternate payments and cash may be lower than other estimates.
Example of an online
Japanese storefront
CASH/CONVENIENCE STORE
71%CREDIT/ DEBIT CARD
OTHER
DIRECT DEBIT
18%
7%
4%
N.B. All dollar figures in this document are in US dollars.
eCommerce Sales Volume for 2014 as reported in USD may appear lower when compared to 2013 as a result of differences in exchange rate. The growth rate of 12% for 2014 is more indicative of eCommerce growth in the country.
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ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
JAPAN ONLINE PAYMENTS 2015
Figures rounded to nearest whole number.
mCOMMERCE AND MOBILE PAYMENTS » Japanese consumers have a
high level of comfort with mobile payments. The Osaifu-Keitai (mobile wallet) is accepted at close to a million POS terminals widely including JR railways, and convenience stores.11
» mCommerce too, is growing in popularity. Rakuten says 25 per cent of their revenue comes from mobile phones.12
» In 2012, American Apparel launched its first mCommerce store in Japan opting for a mobile website instead of an app and offering the same payment options as its eCommerce site.13
» For luxury products, the most popular use for smartphones and tablets was to compare prices usually on the brand’s Japanese web site.14
83% of Japanese Population15
105 millionMobile Phone Users15
51 million Smartphone Users15
Methods of Payment• A majority of adults have at least one major brand credit card.
Credit cards are by far the most common method of payment, most eCommerce merchants accept Visa; MasterCard and JCB.9
• Direct debit bank transfers are available only to specific large merchant segments such as utilities and cellphone operators.
• For other merchants, bank transfers are done as a push from the consumer to the merchant. This can be popular with very small merchants, as it places the cost of the transfer on the consumer; however reconciliation between order and payment can be problematic.9
• Major delivery companies offer payment-on-delivery services, where the consumer can pay by cash or, in some cases, with a payment card. Access to payment-on-delivery generally requires the merchant to contract directly with the delivery company.
• Payment via konbini (convenience store) remains popular in Japan, particularly among consumers who are too young or otherwise do not qualify for a credit card.7 A customer can order goods online, select to pay at a konbini, receive a payment ID, and make a payment within six days. Goods are shipped after payment is received by the merchant.
• Credit card purchases have options for installment or deferred payment, referred to as Japan Payment Options or “JPO”. In our experience, many online merchants, particularly those selling large-ticket items, will allow the consumer to specify JPO at time of checkout.
• Unlike other markets, acquirers in Japan are card companies and not banks. Thus a merchant’s primary banking relationship is generally not relevant in selecting an acquirer.
• Acquirers will generally not contract directly with smaller merchants, instead these merchants contract with the Payment Service Provider for settlement of funds, in a so-called “houkatsu” or comprehensive contract.
Restrictions, Mandates and Legal Requirements• Payer authentication such as 3D Secure is implemented by
relatively few merchants.7 For merchants that carry high-risk goods or have a history of fraudulent transactions, the acquirer may require the use of 3D Secure.
• Fraud rates are generally low, especially compared to other markets.7 However there is also a very low tolerance for fraud by the card companies and they can mandate the use of 3D Secure or terminate acquiring for overseas cards after just a handful of fraudulent transactions.
1. Nomura Research Institute cited by USDA, March 2014, 2. eMarketer, 3. Nomura Reasearch Institute, 2014 and eMarketer eCommerce database, 2014, 4. B2C Ecommerce Sales in Asia Pacific 2012-2017, eMarketer, 5. Forrester Research, as cited in Fortune.com, http://tech.fortune.cnn.com/2013/03/22/rakuten-hiroshi-mikitani/, 6. http://tech.fortune.cnn.com/2013/03/22/rakuten-hiroshi-mikitani/, 7. Ibid, 8. Japan B2C E-Commerce Report, Ystats, 2013, 9. CyberSource Japan, 10. http://www.chinadaily.com.cn/china/2013-08/08/content_16879788.htm, 11. Developed Markets Expected to Post Higher Growth in Mobile Commerce Per Capita Spend from 2013 to 2018, Euromonitor, 2014, 12. http://techcrunch.com/2012/10/20/a-quarter-of-japanese-ecommerce-giant-rakutens-5byear-revenue-is-mobile-and-its-growing-3-400-yy/, 13. Fibre2Fashion, May 2012, 14. McKinsey’s Japan Report: The Godzilla of luxury set for another strong year, 2013, 15. eMarketer 2014 mCommerce Estimates, 16. Our Mobile Planet Smartphone Research, Google, 2013.
40% of Japanese
Population 15
of Smartphone Users Made a Purchase on their Smartphone1644%
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*This projection does not include C2C transactions, taxes, and other payments made to the government. N.B. All dollar figures in this document are in US dollars.
50%
15.2%
10%
6.4%
5.3%
6.2%
STORE CARD
GIFTCARD/ PREPAID
eWALLET (MERCADO
PAGO)2.3%
3.6%
1%
DIRECT DEBIT
CREDIT/ DEBIT CARD
OFFLINE BANK TRANSFER
CONVENIENCE STORE
CASH ON DELIVERY
PAYPAL
MEXICO
MEXICO IS THE SECOND LARGEST eCOMMERCE MARKET IN LATIN AMERICA2, AND IS GROWING RAPIDLY OFF A SMALL BASE. HOWEVER, LOW BROADBAND PENETRATION, SLOW TECHNOLOGY ADOPTION, AND CHALLENGES WITH ONLINE PAYMENT OPTIONS CONTINUE TO HINDER eCOMMERCE PROSPECTS IN MEXICO.
eCommerce• Online buyers in Mexico tend to be relatively affluent, but per
capita online spending remains quite low.3
• The Mexican government has spearheaded several e-Government initiatives that are likely to spur wider adoption of eCommerce.
• Consumer electronics accounts for almost one-quarter of online retail sales in Mexico and digital products and services are also very popular.4
• Liverpool and Mercado Libre are the leading eCommerce players in Mexico.5 Amazon entered Mexico in 2013 and is now the fastest growing online retailer.6
• Analysts are bullish on retail ecommerce sales growth. Emarketer projects that Mexico will register a 20.6% compound annual growth rate between 2012 and 2017.7
$8.5$4.614.337.0%billionbillionmillion
ONLINE PAYMENT PREFERENCE
ONLINE PAYMENTS 2015
CURRENCY: MEXICAN PESO/MXN
$13.1billion
Source: CyberSource estimates 2014
eCommerce Annual Sales Growth Rate in 20141*
eCommerce Sales Volume in 20141*
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
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Figures rounded to nearest whole number.
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ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
mCOMMERCE AND MOBILE PAYMENTS » Mexico enjoys the highest
adoption of mCommerce of all Latin American countries. 17% of Internet users shop via mobile and 12% use mobile wallets.10
» About one in four mobile phones in the country is a smartphone and not all owners subscribe to a data plan, preferring instead to use Wifi locations.12
65% of Mexican
Population13
20%of Smartphone Users Made a Purchase on their Smartphone14
78 millionMobile Phone Users13
29 million Smartphone Users13
MEXICO ONLINE PAYMENTS 2015
1. eMarketer 2014 eCommerce Estimates, 2. eMarketer, 2012 3. Latin American Online Retail Forecast, 2012 to 2017, Forrester 2012, 4. ComScore study 2011 commissioned by CyberSource, 5. Latin American Online Retail Forecast, 2012–2017, Forrester 2012, 6. ComScore, 2013, 7. Retail eCommerce Sales Struggle in Mexico, eCommerce, 2014, 8. Bank of Mexico, 2013 as cited in Latin America B2C eCommerce Report, Ystats, 2013, 9. New Payment Methods to Boost B2C Ecommerce Sales in Mexico, eMarketer 2012, 10. Ericsson Lab as cited in Latin America B2C eCommerce Report, Ystats, 2013, 11. Business Software Alliance — http://portal.bsa.org/cloudscorecard2012/assets/pdfs/country_reports/Country_Report_Mexico.pdf, 12. eMarketer: Mobile Mexico: Overcoming Obstacles to Growth, 2012, 13. eMarketer 2014 mCommerce Estimates, 14. GlobalWebIndex “State of Global E-Commerce Report 2013”.
Methods of Payment• Debit cards far outnumber credit cards in Mexico. In 2013,
for a population base of 121 million, there were 25 million active credit cards.8
• Not all debit cards in Mexico, however, can be used for making online payments, making online payments difficult for the average Mexican.
• New methods of payment are emerging to tap non-cardholders. One such off-line payment system is DineroMail. During checkout, the consumer selects DineroMail OXXO or DineroMail 7eleven, enters name, email address, and phone number, and is redirected to the DineroMail website to print out a voucher containing a barcode. The consumer then presents the voucher and makes the payment at an OXXO or 7eleven store.
• Another alternate payment option involves cash payments at bank branches for purchases made through low-cost travel websites.9
• Security of online payments was the most often cited reason for using offline payment methods in Mexico (49%).3
Restrictions, Mandates, and Legal Requirements• Mexico requires CVN for all eCommerce transactions except those
from merchants that initiate recurring transactions.
• Mexico has comprehensive privacy legislation in place. The Personal Data Protection Law is recent, and specific requirements have yet to be developed. There are no registration or other cross-border privacy requirements in the law at this stage.11
• The law includes a general requirement that data subjects must be notified when a data breach occurs.
24% of Mexican
Population 13
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Sources: Payment Cards and Mobile research – European Payment Card Yearbook 2014-15.
ONLINE PAYMENTS 2015
eCommerce Annual Growth Rate in 20141
eCommerce Sales Volume in 20141
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
NETHERLANDS
THE NETHERLANDS IS THE 10TH LARGEST eCOMMERCE MARKET IN EUROPE AND GENERATED 2.5% OF EUROPEAN eCOMMERCE TURNOVER FOR 2014. DESPITE THE ALREADY HIGH PENETRATION OF ONLINE SHOPPING AMONG THE DUTCH POPULATION, THE GROWTH RATE OF eCOMMERCE IN 2015 IS FORECASTED TO BE 10.8%.1
eCommerce• The country has a well-established online infrastructure with
95% of households having internet access in 2013 proving to be one of the fastest moving e-commerce markets in Europe.2
• The Dutch people have shown a predilection for being avid online shoppers.3
• Compared to $2,290.5 per person in the UK, the Dutch people spent in 2013 on average $1,346 per person for purchases on the internet, up 6.5% from 2012.3
• Dutch merchants usually sign contracts with PSPs independent from the contracts with acquirer banks.
• From 2015, in line with the EU-wide regulation, Dutch merchants will have to collect applicable VAT rates based on the consumers’ residence.4 The applicable standard VAT rate in The Netherlands is 21%.
• Two foreign merchants, Zalando and H&M, have succeeded in penetrating the ranks of the Dutch top 10 online retailers.3
$3.6$7.99.611.6%billionbillionmillion
CURRENCY:EURO/EUR
$11.5billion
Introduced in 2005, iDEAL is an online credit transfer service for online purchases and issued payment orders for e.g. council fees, transport passes, reloading e-wallet services. Online buyers have to have a Dutch bank account with access to internet banking or mobile banking operated by a Dutch bank. iDEAL payments are authorized against the corresponding bank account and authenticated by a one-time transaction authentication number (TAN). Merchants receive a payment guarantee from their iDEAL acquiring bank.
PAYPAL
CREDIT CARDS
DIRECT DEBITS
CREDIT TRANSFERS
OTHER
6%
22%
5%
ACCEPTGIRO
5%
2%
5%
55%iDEAL
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Figures rounded to nearest whole number.
NETHERLANDS ONLINE PAYMENTS 2015
© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
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mCOMMERCE AND MOBILE PAYMENTS » In 2013, 13.7% of the Dutch made a
mobile purchase using a smartphone and/or a tablet.3
» Smartphones and tablets already amount to 11% of the total eCommerce market in the Netherlands.3
» In 2013, online consumer spending via smartphone and tablet increased to $1.8 billion.3
» Dutch merchants have started to use QR-codes and mobile apps as access channels to their online shops.
» Mobile network operators have partnered with banks and payment networks to offer digital wallets (e.g. VodaFone SmartPass) and have started to promote NFC capable smartphones to their subscribers.
31% of the Dutch private
smartphone users have purchased products or
services in 20135
14 million Mobile Phone Users1
9 million Smartphone Users1
1. eMarketer 2014 estimates. 2. Eurostat Statistics. 3. Thuiswinkel: Thuiswinkel Markt Monitor. 4. Required by EU regulation. 5. Google – Our Mobile Planet. 6. Card payments means payments on debit cards and on credit cards
Methods of Payments• Debit cards are most commonly used to pay at POS outlets.
However, the Dutch banks have positioned online bank transfers as online payment instrument with higher priority than cards.
• The domestic credit transfer services iDEAL and Acceptgiro are the most preferred payment instruments on the internet with credit cards, PayPal and others only playing a minor role.
• The Netherlands have no domestic debit card and credit card networks. All cards have international card brands.
• Debit cards issued are Maestro and V PAY; credit cards issued are MasterCard, Visa and also American Express and Diners.
• In 2013, there were 1.81 cards per capita with on average 169.8 card payments made per capita (US cardholders made around 248 card payments in comparison).6
• The country has a decentralized payment infrastructure with 30 major issuer banks, 18 debit acquirers, 3 credit acquirers, and more than 30 internet payment service providers.
• The new methods of payment emerging for Dutch online buyers include Klarna, AfterPay, PayBy Bill, e-purse Minitix, paysafecard, Carrier Billing, Accept Email, Payza.
Restrictions and Mandates• EMV standards and PCI standards are mandatory for card
payments in The Netherlands.
• Dutch banks recommend the use of security standard 3-D Secure.
• The legal framework for payment services applied in The Netherlands is compliant with European Union laws.4
80% of Dutch
Population1
52% of Dutch
Population 1
N.B. All dollar figures in this document are in US Dollars; monthly average rate EUR 1.0 = USD 1.370576 per December 2013. Market commentary and data contained in this factsheet, unless otherwise noted, has been researched and compiled by Payment Cards and Mobile.
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eCommerce Annual Growth Rate in 20141
eCommerce Sales Volume in 20141
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
N.B. All dollar figures in this document are in US Dollars; monthly average rate EUR 1.0 = USD 1.370576 per December 2013. Market commentary and data contained in this factsheet, unless otherwise noted, has been researched and compiled by Payment Cards and Mobile.
ONLINE PAYMENT PREFERENCE5
NORWAY
NORWAY IS THE 7TH LARGEST eCOMMERCE MARKET IN EUROPE AND GENERATED 3.3% OF EUROPEAN eCOMMERCE TURNOVER. DESPITE THE ALREADY HIGH PENETRATION OF ONLINE SHOPPING AMONG THE NORWEGIAN POPULATION, THE GROWTH RATE OF eCOMMERCE IN 2015 IS FORECASTED TO BE 10.8%.1
eCommerce• The country has a well-established online infrastructure. 94%
of households had internet access in 2013, helping Norway to be one of the more mature eCommerce markets in Europe.2
• In 2013, 61% of Norwegians bought a product online at least once a quarter and 26% did so every month.3
• In 2013, 50% of Norwegians bought a product from a foreign website, often from non-EU countries such as the USA.3
• Norwegian online buyers spent on average $2,400 per person in 2013, up 8.1% from 2012.3
• Norwegian merchants usually sign contracts with the PSPs of their acquirer banks.
• Komplett Group (komplett.no, MPX.no and blush.no) is the leading online merchant in Norway’s highly fragmented B2C market.3
$5.8$9.12.511.0%billionbillionmillion
CURRENCY:NORWEGIAN KRONE/NOK
$14.9billion
Launched in 2008, the online bank transfer service BankAxess is offered by most Norwegian banks. BankAxess allows consumers to make online credit transfer payments to merchants through their bank’s internet portal, without providing their personal data to third parties. Online buyers must have a Norwegian bank account with access to internet banking or mobile banking. Merchants receive a payment guarantee from their BankAxess acquiring bank.
CASH-ON-DELIVERY
INSTALLMENTS 1%
OTHER 1%
2%
57%
13%
13%
DEBIT OR CREDIT CARDS
ONLINE BANK TRANSFERS(INCL. BANKAXESS 6%)
INVOICE 13%
MICRO- PAYMENTS (INCL. PAYPAL)
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Figures rounded to nearest whole number.
NORWAY ONLINE PAYMENTS 2015
© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
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mCOMMERCE AND MOBILE PAYMENTS » In 2013, 33% of all smartphone users made
a mobile purchase using a smartphone.5
» In 2013, smartphones and tablets accounted for 18% of the total eCommerce market in Norway.3
» In 2013, online consumer spending via smartphone and tablet increased to $2.4 billion.
» Norwegian merchants have started to use QR-codes and mobile apps as access channels to their online shops.
» Mobile network operator Telenor has partnered with banks and payment networks to offer the mobile wallet Valyou and has started to promote NFC-capable smartphones to its subscribers.
46% of Norwegian smartphone
users are forecasted to purchase products
or services5
5 million Mobile Phone Users1
3 million Smartphone Users1
1. eMarketer 2014 estimates. 2. Eurostat Statistics. 3. PostNord – eCommerce in the Nordics 2014. 4. DIBS – Nordic eCommerce Report 2013. 5. Google – Our Mobile Planet. 6. Card payments in the US include debit cards and credit cards.
Methods of Payments• Debit cards are most commonly used at POS outlets. However,
the Norwegian banks have positioned credit cards and bank transfers as online payment instruments. There is little online use of domestic debit cards.
• Norway has a domestic debit card brand, BankAxcept, which is generally co-badged* Visa or Electron.
• All Norwegian credit cards are issued as Visa, MasterCard, American Express, or Diners.
• Domestic debit cards are processed in Norway according to the rules of the domestic scheme, independent from the co-branded international brand.
• In 2013, there were 2.5 cards per capita, with an average of 325.3 card payments per capita (US cardholders made around 248 card payments in comparison).6
• The country has a decentralized payment infrastructure with 20 major issuer banks, 10 major acquirers, 2 large processors, 5 local PSPs, one ATM/POS network and 2 Norwegian EMIs (Electronic Money Institutions).
• New methods of payment emerging for Norwegian online buyers include Klarna, paysafecard, Ukash, mCash, PayEx, BuyPass, Mobilhandel and Nordea Solo.
• Leading Nordic bank groups have announced support of the digital wallet MasterPass for 2014/15.
Restrictions and Mandates• EMV standards and PCI standards are mandatory for card
payments in Norway.
• Norwegian banks recommend the use of the security standard 3-D Secure.
88% of Norwegian Population1
60% of Norwegian Population 1
* Co-badging is the practice of combining different payments brands on the same card.
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v2.0.0_PG598*This projection does not include C2C transactions, taxes, and other payments made to the government. N.B. All dollar figures in this document are in US dollars.
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RUSSIA
WITH ONE OF THE LARGEST NUMBERS OF ONLINE USERS IN EUROPE2 AND A RAPIDLY GROWING POPULATION OF ONLINE SHOPPERS, RUSSIA HOLDS CONSIDERABLE PROMISE FOR eCOMMERCE BUSINESSES. YET, SUCCESS HAS SO FAR BEEN LIMITED TO LOCAL FIRMS THAT UNDERSTAND LOCAL PREFERENCES AND ARE ABLE TO OVERCOME SERIOUS LOGISTICAL BARRIERS.
eCommerce• Lack of infrastructure makes it hard for global retailers to be
successful in Russia. Delivery of goods is hampered by an unreliable, expensive postal system. An under-developed financial services sector makes cash acceptance unavoidable.
• eCommerce in Russia is dominated by local players like OZON.ru (similar to Amazon.com), that claims more than 700,000 unique visitors who spend more than $1 million in sales every day. OZON.ru has its own delivery service, O-Courier, which operates in 130 cities across the country.3
• Several international players recently entered the Russian market including Asos (offers express delivery and mail delivery), EBay, Amazon, and Shopbop, Amazon’s online fashion retailer. Shopbop offers free shipping for orders of over $100.4
• To build consumer trust, online retailers in Russia prominently display phone numbers and maintain extensive call center operations.
eCommerce Annual Sales Growth Rate in 20141*
eCommerce Sales Volume in 20141*
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
$21.3 30.616.2%billion million
ONLINE PAYMENTS 2015
CURRENCY: RUSSIAN RUBLE/RUB
$3.9$17.4billionbillion
CASH ON DELIVERY DOMINATES eCOMMERCE PAYMENTS IN RUSSIA
“Which of the following payment methods have you used in the past
three months to pay for products you bought online”
CASH (ON DELIVERY)
DEBIT/PAYMENT CARD
CREDIT CARD
MICROBILLING SYSTEM
PAYPAL
ONLINE BANKING TRANSFER
OTHER ALTERNATIVE ONLINE PAYMENT
OTHER PAYMENT METHOD
49%
24%
21%
18%
9%
7%
7%
8%
Base: 1,336 metropolitan Russian online adults (16+) who have ordered products or services online in the past three months (multiple reponses accepted)
Source: Trends In Russia’s eCommerce Market, Forrester, 2013
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mCOMMERCE AND MOBILE PAYMENTS » Mobile traffic represents
just 3-5% of total traffic on eCommerce sites in Russia and the share of online orders made via mobile phones is even lower.8
» Still, service providers are trying to change the landscape. QIWI Limited, a local payment services provider, and Visa Inc. formed a strategic alliance in 2012 to introduce a digital wallet providing consumers access to various electronic payment options.
73% of Russian Population9
104 million
Mobile Phone Users9
49 million Smartphone Users9
34% of Russian
Population 9
Figures rounded to nearest whole number.
39%of Smartphone Users Made a Purchase on their Smartphone10
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ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
© 2015 CyberSource Corporation. All rights reserved.
RUSSIAONLINE PAYMENTS 2015
1. eMarketer 2014 eCommerce Estimates, 2. eMarketer, 2012, 3. Fortune, 2012, 4. Eastern Europe, B2C Ecommerce Report, Ystats, 2013 5. Glenbrook eCommerce market analysis, 2011, 6. Business Software Alliance – http://portal.bsa.org/cloudscorecard2012/assets/pdfs/country_reports/Country_Report_Russia.pdf, 2012, 7. http://www.informilo.com/ 20120528/russias-e-commerce-boom-600, 2012, 8. Ystats, Data Insights, Live Internet, 2012, 9. eMarketer 2014 mCommerce Estimates, 10. Our Mobile Planet Smartphone Research, Google, 2013.
“ It’s better for us to take cash rather than card in many cases since the cost per transaction by card is much more expensive for us. We’ve always supported cash payments, and in fact I believe this has been instrumental in establishing customer trust in us and getting us to our market-leading position.” 7
Maelle Gavet Chief Executive Officer of OZON Holdings, a leading eCommerce company in Russia
Methods of Payment• Exorbitant bank charges and lack of trust in electronic payments
result in cash being the preferred payment method in Russia, especially for physical goods. Cards often require pre-authorization and card data is not stored by merchants.
• Since credit cards pose significant fraud risk for merchants, Russian businesses continue to favor cash.
• Card and online payments however, are gaining ground on travel sites and for digital goods.
• A number of online payment systems such as Yandex.Money (~14.0 million users; 20,000 merchants) and WebMoney (~6.0 million users, 2,200 merchants) are also gaining popularity. Customers fund them by linking these accounts with domestic bank accounts, debit cards or deposit cash through offline stores/kiosks. These payment systems can have daily transaction limits.5
• Kiosks, where consumers pay for online purchases as well as other bills, are another form of payment in Russia. They can be seen on streets, supermarkets, small stores, etc. Sometimes, there are multiple terminals by different companies, creating a ‘payment island’.
Restrictions, Mandates, and Legal Requirements• Russia has its own approach to privacy legislation. The Russian law
has many similarities with the EU Directive. However, enforcement of the law appears to be very limited.6
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eCommerce Annual Sales Growth Rate in 20141*
eCommerce Sales Volume in 20141*
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
*This projection does not include C2C transactions, taxes, and other payments made to the government. N.B. All dollar figures in this document are in US dollars.
SOUTH KOREA CURRENCY: SOUTH KOREAN WON/KRW
ONLINE PAYMENTS 2015
SOUTH KOREA WAS RANKED THE FIFTH MOST ATTRACTIVE RETAIL eCOMMERCE MARKET IN THE WORLD BY A.T. KEARNEY2 AND FOURTH ON FORRESTER’S eCOMMERCE READINESS MATRIX.3 HOWEVER, THE COUNTRY IS CLOSE TO REACHING THE SATURATION POINT OF ITS ONLINE SHOPPING POPULATION AND FUTURE GROWTH RATES WILL DECLINE COMPARED TO OTHER ASIAN COUNTRIES.4
eCommerce• Koreans enjoy the fastest Internet speed in the world averaging
14.7Mbps5 and the government has actively promoted online shopping and banking.
• South Koreans have a reputation of being avid shoppers and are willing to pay premium prices for designer goods.6
• Global luxury brand websites are not sufficiently localized (do not provide a local customer service number, live chat, local pricing, etc.) and are not present on local social networks.7
• The ten leading online retail sites ranked by unique visitors were all mass merchants.8
ONLINE PAYMENT PREFERENCE
$7.3$33.126.614.8%billionbillionmillion
$40.4billion
Source: Research Now Study of 700 internet users conducted in 2013 commissioned by CyberSource
ONLINE BANK TRANSFER
77.7%CREDIT/ DEBIT CARD
13.9%OTHER
0.8% PAYPAL
2.6%VIA PHONE BILL / INCLUDING PAYMENT BY SMS
2.4% GIFT CARD
2.7%
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cybersource.com© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
SOUTH KOREA ONLINE PAYMENTS 2015
Methods of Payment• Bank cards are the most preferred payment instruments and
credit card usage is prolific. See Online Payment Preference chart.
• Every working Korean has an average of 4.4 credit cards and cardholders make 130 transactions per person, more than any other country. US cardholders make 78 transactions in comparison.9
• South Korea has 8 domestic credit card networks and over 20 credit card companies and card issuing banks.10
• Each of the top 4 credit card providers has a market share of over 10%.11
• The Financial Supervisory Service (a local regulatory body) is helping local card schemes gain market share through policies such as requiring card companies to highlight the difference between the annual fees of domestic and international cards in the application form, and approving new cards – only if they offer both domestic and international card types.12
Restrictions, Mandates and Legal Requirements• Korea’s online regulations require that transactions worth more
than KRW 300,000 be authenticated by digital certificates.13
• The authentication process requires ActiveX – which is made by Microsoft and works in tandem only with Internet Explorer, the default browser for online shopping in Korea.11
• Certificates are not necessary on international sites such as eBay and Amazon.com, in which credit card information is passed from buyer to seller – and verified by a third, private party – with technology built into Web browsers.11
1. eMarketer 2014 eCommerce Estimates, 2. Global Retail E-Commerce Index, 2013, A.T. Kearney, 3. Forrester Readiness Index: eCommerce, 2013, Forrester Research, 4. Cards and Payments in Asia Pacific, Timetric, 2012, 5. Akamai, 2012 http://www.akamai.com/dl/akamai/q3_2012_soti_infographic.pdf, 6. New Wealth, New World, Nielsen, 2013, 7. Digital IQ Index: Korea, L2 Think Tank, 2013, 8. DoubleClick, 2012, 9. A swipe at profits, Economist, 2013, 10. Korea’s Credit Card System: Issues & Potential Measures, Jae-Youn Lee, 2011, 11. Ibid, 12. Financial cards and payments in South Korea, Euromonitor International, 2013, 13. South Korea is stuck with Internet Explorer for online shopping because of security law, Washington Post, 2013, 14. eMarketer, 2013 http://www.emarketer.com/Article/China-South-Korea-Lead-World-Mobile-Commrce-Adoption/1009742#yYW5vlUKOMUJWJUH.99, 15. Tiger Countries B2C E-Commerce Report 2013, Research and Markets, 2013, 16. South Korea’s progress on mobile payments adoption, Payments Perspectives Blog, MasterCard Insights 2013, 17. eMarketer 2014 mCommerce Estimates.
mCOMMERCE AND MOBILE PAYMENTS » South Korea has the highest
mobile broadband penetration rate in the world, and the second highest penetration rate for 3G handsets.4
» 37% of internet users made a mobile purchase in 2013 in South Korea nearly double the rate of mobile purchase adoption the US.14
» Today, more online purchases are made using smartphones than using laptops/notebooks in South Korea.15
» Mobile phone companies have partnered with banks and payment networks to offer digital wallets, and have aggressively promoted NFC technology to their customers.16
83% of South Korean
Population17
41 millionMobile Phone Users17
33 million Smartphone Users17
Figures rounded to nearest whole number.
67% of South Korean
Population 17
Card Issuing Bank %Kookmin 15.8Hana 6.8Woori 6.8NACCP 6.7IBK 5.6City 3.1SC First Bank 1.5Other 6.6Total 52.9
Independent Card Company %Samsung 10.6Shinhan 20.2Hyundai 9.8Lotte 6.3BC 0.1KDB Capital 0.1Total 47.1
SOUTH KOREA'S FRAGMENTED CREDIT CARD MARKET: Market share of leading players
Source: Korea’s Credit Card System: Issues & Potential Measures, Jae-Youn Lee, 2011.
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ONLINE PAYMENTS 2015
eCommerce Annual Growth Rate in 20141
eCommerce Sales Volume in 20141
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
N.B. All dollar figures in this document are in US Dollars; monthly average rate EUR 1.0 = USD 1.370576 per December 2013. Market commentary and data contained in this factsheet, unless otherwise noted, has been researched and compiled by Payment Cards and Mobile.
ONLINE PAYMENT PREFERENCE5
SPAIN
SPAIN IS THE 4TH LARGEST eCOMMERCE MARKET IN EUROPE. IN 2014, IT GENERATED 4.9% OF EUROPEAN eCOMMERCE TURNOVER AND HAS A RAPIDLY GROWING ONLINE SHOPPING POPULATION. THE GROWTH RATE OF eCOMMERCE IN 2015 IS PREDICTED TO BE 13.0%.1
eCommerce• The country has a well-established online infrastructure.
Seventy percent of households had internet access in 2013, helping Spain become a high growth eCommerce market in Europe.2
• Spanish internet users have become increasingly avid online shoppers.3
• Spanish online buyers spent on average $1,227 per person in 2013, up by 11.6% from 2012.
• eCommerce in Spain still is not as mature as in the UK, Germany and France. For instance, only two out of ten Spanish small and medium merchants sell online.3
• Spanish merchants sign contracts with the acquirer bank. It is the bank that provides them with the payments infrastructure through Redsys or CECA, the two main processing companies in Spain.
• From 2015, in line with EU-wide legislation, Spanish merchants will have to collect the applicable VAT rate for cross-border sales based on the consumers’ residence.4 For instance, the applicable standard VAT rate in Spain is 21%.
• BuyVip (Amazon), Privalia, ebay, Zara and El Corte Ingles are among the leading eCommerce retailers in Spain.3
$8.2$14.016.813.8%billionbillionmillion
CURRENCY:EURO/EUR
$22.2billion
ELV is a Spainish, IBAN-based direct debit scheme that is very popular at point-of-sale (POS) and on the internet, although payment to merchant is not guaranteed. Some specialized providers offer services to mitigate the risk of non-payment.
In Spain, there are three domestic card schemes: Euro6000, ServiRed and 4B. Their debit cards and credit cards are co-badged* for international use with any of the Visa, Electron, MasterCard or Maestro brands. Domestic card use in Spain is processed according to the rules of the domestic scheme, independent from the co-badged international brand.
PREPAID CARDS
BANK TRANSFERS
DIRECT DEBITS 2.2%
OTHER
10.6%
3.9%
CASH-ON-DELIVERY
3.2%
3.6%
11.6% 66.2%PAYPAL CREDIT/DEBIT CARDS
HOME
Figures rounded to nearest whole number.
SPAIN ONLINE PAYMENTS 2015
* Co-badging is the practice of combining different payments brands on the same card.
© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
cybersource.com
mCOMMERCE AND MOBILE PAYMENTS » In 2013, 25% of Spaniards made a mobile
purchase using a smartphone or tablet.6
» In 2013, 86% of Spanish smartphone users visited social networks.6
» Online consumer spending via smartphone and tablet increased by 40% in 2013.3
» Online merchants in Spain will increasingly need to cater to mobile shoppers. So far, just 53% have mobile sites.1
» Spanish merchants have started to use QR-codes and mobile apps.
» Mobile network operators have partnered with banks and payment networks to offer digital wallets (e.g. Orange, Telefónica, VodaFone SmartPass) and have started to promote NFC-capable smartphones to their subscribers.
31% of Smartphone Users made a Purchase on their Smartphone6
39 million Mobile Phone Users1
22 million Smartphone Users1
1. eMarketer 2014 estimates. 2. Eurostat. 3. ONTSI – Observatorio nacional de las telecomunicaciones y de la SI. 4. Required by EU Regulation. 5. ONTSI Medios de pago utilizados. 6. Google – Our Mobile Planet. 7. Card payments means payments on debit cards and on credit cards.
Methods of Payments• Spain is a complex market with three domestic card schemes:
Euro6000, ServiRed and Sistema 4B. Debit cards and credit cards are usually co-badged Visa, Electron, MasterCard or Maestro, respectively.
• All credit cards issued by Spanish banks are tied to one of the international card brands: MasterCard, Visa, American Express, Diners or JCB.
• Cards belonging to the domestic schemes are the dominant payment means at POS outlets and on the internet.
• There are 1.52 cards per capita with on average 54.4 card payments per capita. By comparison, US cardholders made around 248 card payments.7
• The country has a decentralized payment infrastructure with 30 major issuer banks, 20 acquirers, 5 processors, 15 internet payment service providers and 3 ATM/POS networks (Euro6000, ServiRed and Telepago 4B).
• New methods of payment emerging for Spanish online buyers include bank transfers (Teleingreso, laCaixa, iDEAL), digital wallets (CaixaWallet, Pagantis), prepaid products (Ukash, paysafecard) and carrier billing.
• The digital wallet MasterPass has been piloted since 2013.
Restrictions and Mandates• EMV standards and PCI standards are mandatory for card
payments in Spain.
• Spanish banks recommend the use of the security standard 3-D Secure.
• The legal framework for payment services applied in Spain is compliant with European Union laws.4
82% of Spanish
Population1
46% of Spanish
Population 1
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eCommerce Annual Growth Rate in 20141
eCommerce Sales Volume in 20141
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
N.B. All dollar figures in this document are in US Dollars; monthly average rate EUR 1.0 = USD 1.370576 per December 2013. Market commentary and data contained in this factsheet, unless otherwise noted, has been researched and compiled by Payment Cards and Mobile.
SWEDEN
SWEDEN IS THE 8TH LARGEST eCOMMERCE MARKET IN EUROPE - IT GENERATED 3.1% OF EUROPEAN eCOMMERCE TURNOVER. DESPITE THE ALREADY HIGH PENETRATION OF ONLINE SHOPPING AMONG THE SWEDISH POPULATION, THE GROWTH RATE OF eCOMMERCE IN 2015 IS PREDICTED TO BE 9.6%.1
eCommerce• The country has a well-established online infrastructure. 93%
of households had internet access in 2013, helping Sweden to be one of the most mature eCommerce markets in Europe.2
• In 2013, 55% of Swedes made an online purchase at least once a quarter and 27% made an online purchase every month.3
• In 2013, 31% of Swedes bought a product from a foreign website, often from the UK, USA and Germany.3
• Swedish online buyers spent on average $2,301 per person in 2013, up by 18.1% from 2012.
• Swedish merchants usually sign contracts with the PSPs of their acquirer banks.
• From 2015, in line with EU-wide legislation, Swedish merchants will have to collect VAT based on the consumers’ residence.4 The applicable standard VAT rate in Sweden is 25%.
• Amazon and Nettonet are among the leading eCommerce retailers in Sweden’s fragmented B2C market.3
$5.1$8.75.412.6%billionbillionmillion
CURRENCY:KRONA/SEK
$13.8billion
Online bank transfer services specific to a particular bank, such as Nordea Solo by Nordea, allow users to make online credit transfer payments to merchants through their bank’s internet portal without providing personal data to third parties. Online buyers must have a Swedish bank account with access to internet banking or mobile banking. Merchants receive a payment guarantee from their acquiring bank.
CASH-ON-DELIVERY
OTHER 1%INSTALMENTS, KLARNA
5%
2%2%
PAYPAL, PREPAID
38%
29%
23%
DEBIT AND CREDIT CARDS
INVOICE
ONLINE BANK TRANSFERS
ONLINE PAYMENT PREFERENCE5
HOME
Figures rounded to nearest whole number.
SWEDEN ONLINE PAYMENTS 2015
© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
cybersource.com
mCOMMERCE AND MOBILE PAYMENTS » In 2013, 33% of all Swedish
smartphone users made a mobile purchase using a smartphone.6
» Swedish merchants have started to use QR-codes and mobile apps as access channels to their online shops.
» The Swedish mobile network operators Telia, Tele2, Telenor and 3 (Tre) have partnered with banks and payment networks to offer a digital wallet, WyWallet, and have started to promote NFC-capable smart phones to their subscribers.
47% of Swedish smartphone
users are forecasted to purchase products
or services6
8 million Mobile Phone Users1
5 million Smartphone Users1
1. eMarketer 2014 estimates. 2. Eurostat Statistics. 3. PostNord – eCommerce in the Nordics 2014. 4. Required by EU Regulation. 5. DIBS – Nordic eCommerce Report 2013. 6. Google – Our Mobile Planet. 7. Card payments in the US include debit cards and credit cards
Methods of Payments• Debit cards are the dominant payment means at POS outlets.
The Swedish banks have positioned bank transfers and cards as online payment instruments.
• All Swedish credit cards are issued as Visa, MasterCard, American Express, or Diners.
• In 2013, there were 1.31 cards per capita, with an average of 250 card payments per capita (US cardholders made around 248 card payments in comparison).7
• The country has a decentralized payment infrastructure with 15 major issuer banks, 7 major acquirers, 2 major processors, 20 PSPs, 1 POS network and 2 Swedish EMIs (Electronic Money Institutions).
• New methods of payment emerging for Swedish online buyers include Klarna, paysafecard, Ukash, PayEx, InPay, Nordea Solo, and Danske netBank.
• Leading Nordic bank groups have announced support for the digital wallet MasterPass for 2014/15.
Restrictions and Mandates• EMV standards and PCI standards are mandatory for card
payments in Sweden.
• Swedish banks recommend the use of the security standard 3-D Secure.
• The legal framework for payment services applied in Sweden is compliant with European Union laws.4
80% of Swedish
Population1
55% of Swedish
Population 1
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ONLINE PAYMENT PREFERENCE
Source: Research Now Study of 708 internet users conducted in 2013 commissioned by CyberSource
‘Other’ includes Gift, Prepaid and Store Credit
eCommerce Annual Sales Growth Rate in 20141*
eCommerce Sales Volume in 20141*
Digital Buyers in 20141
Digital Travel Sales in 20141
Retail eCommerce Sales in 20141
Source: CyberSource UK eCommerce Fraud Report, 2013
*This projection does not include C2C transactions, taxes, and other payments made to the government. N.B. All dollar figures in this document are in US dollars.
INVESTMENTS IN FRAUD PREVENTION TOOLS AND WIDESPREAD USE OF TECHNOLOGIES SUCH AS 3D SECURE HAS RESULTED IN A COMPARATIVELY LOW LEVEL OF FRAUD.
UK CURRENCY: POUND STERLING/GBP
ONLINE PAYMENTS 2015
THE UNITED KINGDOM IS THE BIGGEST ONLINE SHOPPING NATION IN THE DEVELOPED WORLD, WITH ALMOST TWO-THIRDS OF ADULTS USING THE INTERNET TO BUY GOODS OR SERVICES.2 PER CAPITA ANNUAL SPENDING IS ESTIMATED AT $3,280, HIGHER THAN IN THE US AND THE HIGHEST IN EUROPE.3
eCommerce• eCommerce revenues are expected to remain strong with
merchants forecasting 26% growth in revenues on average.4
Projections suggest that by 2016, almost a quarter of all retail sales in the UK will take place on the internet.5
• After Germany, the UK has the largest number of online buyers in Europe at 38 million.6
• Cross-border sales account for 37% of eCommerce activity in the UK.7
• The UK has many of the same fraud tools that are available in the United States. Availability of public records is more limited. Card verification tools, such as AVS, CVV, and payer authentication are all used.
• UK consumers cited the padlock symbol and/or https in the address bar, as well as the reputation of the retailer, to be the most reassuring indicators of a website’s safety, far ahead of trustmarks like ISIS, McAfee Secure or the SSL certificate.8
• The e-retail sector recorded a conversion rate of 5.24% in November 2013, the highest since April 2009.9
• MasterCard has mandated that all merchants must support SecureCode for Maestro transactions.
$33.5$82.039.515.7%billionbillionmillion
$115.5billion
1.65% 1.26% 85%of eCommerce Revenues Lost
to Fraud
of Orders are Fraudulent
of Merchants Expect Fraud Revenue Losses
to Remain Static or Grow
88.5%7.7%
2%
1.1%0.7%
CREDIT/ DEBIT CARD
PAYPAL
AMAZON, OTHER eWALLETS
ONLINE BANK TRANSFER
OTHER
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cybersource.com© 2015 CyberSource Corporation. All rights reserved.
ABOUT CYBERSOURCE
CyberSource Corporation, a wholly owned subsidiary of Visa Inc., is a payment management company. More than 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management and simplify payment security. The company is headquartered in Foster City, California. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.
UK ONLINE PAYMENTS 2015
Methods of Payment• Despite the widespread use of payment cards for online purchases,
65% of merchants in the country accept non-card payments.3
• Domicile is not required for credit cards, but to accept local debit cards, businesses need to establish a European entity or go through a payment service provider that can provide the local banking relationship.
• 2013 saw the introduction of 2 major digital wallets in the UK – V.me by Visa and MasterPass from MasterCard.
1. eMarketer 2014 eCommerce Estimates, 2. The Telegraph 2012 http://www.telegraph.co.uk/news/uknews/9054400/Britons-are-biggest-online-shoppers-in-developed-world.html, 3. Europe B2C eCommerce Report, 2013, http://www.ecommerce-europe.eu/home. Converted at the exchange rate of €1=$1.33, 4. CyberSource UK eCommerce Fraud Report, 2013, 5. Internet Retailing March/April 2013, 6. eMarketer database, 2014, 7. Neilsen 2013, https://www.paypal-forward.com/leadership/paypal-unveils-modern-spice-routes-cross-border-shopping-creates-economic-opportunity-worldwide/ 8. Research Now Study, 2013 commissioned by CyberSource, 9. IMRG CapGemini E-Retail Index, 2013, 10. www.imrg.org, 11. M-Retail Index, IMRG CapGemini 2013, 12. Ibid, 13. Online Shopper Rage, Loudhouse Research, 2013, 14. mCommerce, The Complete Picture 2013, affiliatewindow, 15. Media Consumer Survey, 2013 Deloitte, 16. eMarketer 2014 mCommerce Estimates, 17. The Explosion of Mobile, IMRG, 2012. 17. GlobalWebIndex “State of Global E-Commerce Report 2013”.
“ Mobile is clearly a game-changer for the UK e-retail industry, with m-retail sales increasing at more than double the levels we saw in the early 2000s when IMRG started tracking online sales.” 10
Tina Spooner CIO at IMRG
mCOMMERCE AND MOBILE PAYMENTS » mCommerce growth rates are
slowing slightly. The 82% year- on-year growth recorded in November 2013 is down from 309% recorded at the same time a year previously.11
» mCommerce conversion rates continue to rise from 1.5% in 2012 to 2.2% in 2013.12
» 67% of digital shoppers used a tablet, 44% used a browser on their smartphone, and 33% used an app on their smartphone. (83% used a laptop.) 13
» Mobile optimized sites are driving higher average order values. For some retailers the improvement is as much as 12%.14
» Younger tablet and smartphone users in the UK prefer apps over mobile sites while shopping. Nearly half of respondents between ages 16 and 24 preferred using apps while doing their shopping. That proportion decreased steadily among older consumers, reaching 14% for the 45 to 64 age group.15
81% of British
Population16
56% of British
Population 16
46% of British
Population 16
36 million Smartphone Users16
30 million Tablet Users16
52 millionMobile Phone Users16
Figures rounded to nearest whole number.
38%of Smartphone Users Made a Purchase on their Smartphone17
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