More than 80 percent of online shopper have used an "alternative" payments service -- such as PayPal Amazon Payments, or Google Wallet -- over the past 12 months, according to a recently released report from Javelin Strategy & Research.
The report, "Online Retail Payments Forecast: 2013-2018" also found that platforms that were once exclusive to e-commerce are moving into physical stores. PayPal is now an accepted payment method at 18,000 physical stores (representing 23 retailers total), relying on a cloud-based payment system where consumers can complete transactions using a PayPal card or a PIN code. Amazon is also looking to make the jump to brick-and-mortar payments, with early reports indicating that Amazon is looking to offer a digital wallet in conjunction with its Kindle tablets and credit card processing technology, notes Javelin.
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"It is no surprise that Amazon is following PayPal's example by entering the brick-and-mortar space, as PayPal is the far-and-away leader of alternative online payments," said Nick Holland, Senior Analyst of Payments at Javelin Strategy & Research, in a statement. "For mainstream e-commerce players, the hybrid approach of online and brick-and-mortar presence will be critical for success. Consumers continue to prioritize the experience of shopping, leading to ultimate brand loyalty and overall convenience."
Overall, the report found that the e-commerce market is growing at a rapid rate, with consumers spending a total of $351.9 billion online in 2013.