INFOGRAPHIC | There are easily more than 200 payment methods used around the world. Residents of the US and UK could be forgiven for not knowing any payment options other then the 3-4 major credit card brands. Alternative payment methods for most in the West would likely stop at the mention of PayPal.
Online credit card alternatives
The second largest e-commerce marketplace in the world however, is Europe. EU citizens have been using lots of credit card alternatives for for online payments for many years. In fact Visa and MasterCard have struggled to get their cards into the hands of even 50% of the EU shoppers. There are countries were the credit card is rarely used for example, Denmark and Luxembourg. These are relatively wealthy countries with strong economies whereas in most of Europe the lack of credit card use is by consumer choice. The most often cited reasons for the mistrust of credit cards are security concerns and privacy issues.
Accept local payment methods
E-commerce businesses hoping to sell to Europeans or increase their conversions from their EU traffic need to adopt locally payment types preferred by these consumers. There are some countries and related payment methods that should be considered first. Two of the biggest online markets in the EU are Germany and The Netherlands. Internet penetration among the populations are very high, with amount spent annually per consumer amongst the highest in Europe. Dutch citizens have made iDEAL the most popular online payment method with over 140 million transactions last year. Germans prefer alternative payment methods like bank debit/transfer methods as EuroDebit, Giropay, and DirectPay.
Alternative Payments Infographic
A recent survey shows that 83% of online consumers worldwide consider having a range of payment options to be important. Alternative Payments has put together an interesting infographic illustrating the need for merchants to adopt international payment options. Online retailers looking to expand their business in Europe need to offer several payment options and must not rely only on credit cards.
Check out the infographic below