Online Payments: New Cardless Choices Clicking

Bank Technology News,  September, 2006  by Glen Fest

Tags: bank, Google Inc., online payment, payment, PayPal

• E-mail
• Print
• Link

Although the $239 billion in current credit card e-commerce transactions will grow to $340.9 billion by 2009, a recent Celent report on the online payments arena suggests this will still represent a precipitous decline. The 86 percent market share of credit/signature debit cards in online payments will fall below 50 percent in just three years, due to the strident growth in alternative payment services like eBay's PayPal and newly unveiled e-wallet rival, Google Checkout.

The looming e-payments battle between the two giants is frequently positioned as to how these two will divide the spoils of the card issuers' loss and how their alliance and bundling strategies will partition the market, such as when eBay immediately booted Google Checkout from its accepted payor list. But alternative online payments are more than a two-horse showdown. There are plenty of other candidates and strategies waiting to make a significant market dent in the ...