A recent study from U.K.-based WorldPay, produced in coordination with U.S.-based First Annapolis Consulting, estimated that alternative payments such as mobile transactions and digital wallets will account for a majority of transactions by 2017.
Mobile payments for online purchases will increase to approximately $117 billion, comprising three percent of the global e-commerce market in 2017, according to the survey.
Consumers are estimated to make $1.7 billion in digital wallet transactions by 2017, compared to $294 million in 2012. Younger consumers, who often make online and digital game purchases, have increasingly opted for a digital wallet, which allow consumers to store payment and billing information to make purchases.
According to WorldPay, bank transfers, cash-on-delivery and direct debits will start to fall off in popularity by 2017, falling to just six percent of the market, compared to seven percent in 2012. WorldPay also estimated that the share of payment cards in the online payments market will fall from 57 percent in 2012 to reach 41 percent in 2017, accounting for $1.7 billion in e-commerce payments.
The data also indicated that 29 percent of electronic transactions in North America and 41 percent in Europe will be made using non-card methods in 2017. More than 50 percent of electronic transactions in Latin America, and over 60 percent in the Asia-Pacific and Middle Eastern regions will be made using non-card methods in 2017.